Preparing for the removal of card surcharging

The ABA and its member banks are reminding businesses to make sure they are ready for the upcoming Reserve Bank of Australia’s (RBA) card surcharge reforms which take effect from 1 October 2026.

These changes mean:

• businesses will no longer be permitted to add a surcharge when customers pay with eftpos, Visa or Mastercard.
• lower domestic interchange fee caps (portion of card payment costs that flows to the customer’s bank) will apply from 1 October 2026 and new interchange caps for foreign-issued cards from 1 April 2027.
• increased transparency to help businesses better understand and compare payment costs.

ABA CEO Simon Birmingham said banks were supporting business customers to prepare for these changes, along with implementing the lower interchange fees.

“While the RBA estimates that only 1 in every 6 businesses choose to apply a card surcharge, it’s a practice that Australians will be happy to see the back of,” Mr Birmingham said.

“From next month, the price consumers see in the aisle or on the menu will be the price they pay at the checkout. Similarly, when you shop or pay a bill online, you won’t be hit with a card surcharge when you enter your payment details.

“We know business owners have a lot on their plate, however it’s important they understand what these changes mean for them, including the need to disable surcharging functions from 1 October.

“Banks have been reaching out to their business customers to help make sure the transition is as smooth as possible. Businesses with questions about what they need to do to prepare to end surcharging should contact their bank or payment service provider.”

Mr Birmingham also said that as part of the RBA reforms, banks were reducing the fees they charge for processing debit and credit card payments.

“The RBA has also reduced the cap on interchange fees – the portion of card payment costs that flows to the customer’s bank – from 0.8% to 0.3% for personal credit cards,” Mr Birmingham said.

“It’s the RBA’s expectation that businesses will benefit from these lower payment costs, helping to offset the loss of card surcharges by an estimated $660 million per year.”

For more information refer to the RBA’s frequent asked questions on the removal of payment surcharges. ABA member banks are also writing to businesses to make sure they are ready for the changes.