What Australian businesses need to know
From 1 October 2026, card-payment surcharges are set to disappear across major card networks in Australia. Businesses that currently add a separate fee when customers pay by card should start preparing now.
The Reserve Bank of Australia (RBA) has concluded that it is in the public interest to remove card surcharging for the designated eftpos, Mastercard and Visa networks from 1 October 2026. Those networks have announced that they will introduce no-surcharge rules from that date. American Express has also announced that it will remove surcharging from 1 October 2026.
What is changing?
From 1 October 2026, businesses should no longer expect to be able to add a separate surcharge simply because a customer pays using an eftpos, Mastercard, Visa or American Express card. The change applies to credit, debit and prepaid card payments covered by the relevant network rules.
Importantly, this is about card-payment surcharges. It does not automatically remove unrelated charges such as weekend surcharges, public holiday surcharges, booking fees or service fees.
Why is the change being made?
According to the RBA, card surcharging is no longer working as originally intended. It has become increasingly difficult for customers to avoid surcharges, the rules can be complex, and the true final price is not always clear until a customer reaches the payment stage.
The aim of the reforms is to make card payments simpler and more transparent, while also supporting other reforms designed to reduce and better disclose the costs businesses pay to accept card payments.
What does this mean for businesses?
Businesses will still incur merchant fees and other costs when accepting card payments. The key difference is that these costs may need to be built into the business’s overall pricing rather than passed on as a separate card surcharge.
This makes it important to review margins and pricing before 1 October 2026, particularly for businesses that currently rely on card surcharges to recover merchant fees.
Five practical steps to take now
- Review your current surcharge settings in your EFTPOS terminal, point-of-sale system, invoicing software and online payment platform.
- Contact your payment service provider to confirm how and when surcharge functionality will be changed or disabled.
- Review merchant fees and payment plans. The RBA suggests businesses consider whether they are on the most suitable plan and shop around if appropriate.
- Check your pricing. If card acceptance costs are material to your business, consider whether your standard prices need to be adjusted.
- Update customer-facing information, including invoices, websites, payment pages, menus, signage and terms and conditions, so they are ready for the change.
What about invoices issued before 1 October?
The RBA notes that if a card payment is made on or after 1 October 2026, surcharging may no longer be available even where the invoice was issued before that date. Businesses that issue invoices in advance should check with their payment service provider and make sure their payment terms and customer communications are clear.
Can businesses encourage lower-cost payment methods?
Yes. Businesses can continue to offer discounts for particular payment methods. For example, a business may choose to offer a lower price for a preferred payment method, provided its pricing and advertising comply with applicable consumer law requirements.
Start preparing before October
For many businesses, removing card surcharges will be more than a simple change to an EFTPOS setting. It may affect pricing, invoicing, point-of-sale processes, online checkout settings and customer communication.
A review now gives you time to understand your true payment costs, update your systems and decide how those costs should be reflected in your pricing from 1 October 2026.
| Need help reviewing your bookkeeping, invoicing or payment processes before the change? Contact T3 Partners to discuss what your business should update before 1 October 2026. |
References
- Reserve Bank of Australia, “Frequently Asked Questions – Removal of Payment Surcharges From 1 October 2026”, 2026. https://www.rba.gov.au/payments-and-infrastructure/review-of-retail-payments-regulation/2026-03/conclusions-paper/faqs/
- Reserve Bank of Australia, “At a Glance: What the Key Conclusions Are and What They Mean for Businesses and Consumers”, 2026. https://www.rba.gov.au/payments-and-infrastructure/review-of-retail-payments-regulation/2026-03/non-tech-summary.html
- Reserve Bank of Australia, “Regulatory Framework – Credit Cards”, 2026. https://www.rba.gov.au/payments-and-infrastructure/credit-cards/regulatory-framework.html
Note: This article provides general information only and is not legal advice. Card-network rules and implementation details may change. Businesses should confirm arrangements with their payment service provider and seek professional advice where required.