Australia Card Surcharge Changes 2026: What Consumers and Businesses Need to Know
Australia has introduced a major change to card payment pricing. From 1 October 2026, businesses can no longer add a separate surcharge when customers pay using covered Visa, Mastercard, eftpos and American Express credit, debit or prepaid cards. The change is intended to make prices clearer at checkout and reduce the extra fees customers previously encountered when paying by card.
The reform affects shoppers, restaurants, retailers, service providers, online businesses and other merchants that accept card payments. Businesses still incur payment-processing costs, but they must reflect those costs in their overall pricing instead of adding a prohibited card surcharge.
The Reserve Bank of Australia (RBA) led the broader review of merchant card payment costs and surcharging. The Australian Competition and Consumer Commission (ACCC) provides consumer-law guidance, including information about misleading prices. Understanding the distinction between card surcharges and other fees is important for both customers and businesses.
Australia card surcharge rules at a glance
- Effective date: 1 October 2026.
- Covered networks: Visa, Mastercard and eftpos; American Express has also removed surcharging under its own arrangements.
- Covered payments: Credit, debit and prepaid card payments, subject to applicable network rules and exceptions.
- Consumer impact: Businesses can no longer add a separate surcharge for covered card payments.
- Business impact: Card-processing costs can be included in the overall price of goods and services.
- Other fees: Weekend surcharges, public-holiday surcharges and certain booking or service fees are not automatically prohibited by this card-surcharge change.
- Official guidance: Check the RBA and ACCC websites for the applicable rules and consumer protections.
What Changed on 1 October 2026?
Before the reform, some Australian businesses added an extra fee when customers paid with particular credit, debit or prepaid cards. The surcharge was intended to recover some of the cost of accepting the payment. Depending on the merchant and payment method, this could make the final amount higher than the displayed price.
From 1 October 2026, the relevant card networks introduced no-surcharge rules for covered transactions. Businesses accepting those payment methods can no longer add a separate card payment surcharge to the customer's bill.
The RBA changed its regulatory framework to allow the designated networks to implement these rules. Visa, Mastercard and eftpos introduced the changes, while American Express separately decided to remove surcharging from the same date. The RBA also identifies PayPal and UnionPay among providers that announced changes to surcharging, with their arrangements subject to their own applicable terms and timing.
This is a change to the way card payment costs can be passed on to customers. It does not mean that processing a card payment is free for a business or that all other fees charged by a business have been abolished.
Which Card Payments Are Covered?
The new no-surcharge rules cover card payments on the relevant networks. Customers should understand which payment types are included and remember that the detailed conditions are set out in the relevant network rules.
| Payment network | Position from October 2026 |
|---|---|
| Visa | No separate surcharge for covered credit, debit and prepaid card payments. |
| Mastercard | No separate surcharge for covered credit, debit and prepaid card payments. |
| eftpos | No separate surcharge for covered debit and prepaid card payments. |
| American Express | American Express also announced the removal of card surcharging from 1 October 2026. |
The RBA also records announcements by PayPal and UnionPay to remove surcharging under their respective arrangements. Businesses should check the terms applicable to their payment provider and transaction type rather than assume that every digital payment service is governed by exactly the same rules.
For detailed information about coverage, exceptions and implementation, consult the RBA's official frequently asked questions and the relevant card network guidance.
How Will the Changes Affect Consumers?
For customers, the main change is that a business can no longer add a prohibited surcharge simply because the customer pays with a covered card. This should make the amount displayed at checkout more predictable for eligible transactions.
1. Clearer checkout prices
Customers should no longer encounter a separate covered-card surcharge at the end of a transaction. The total price payable should be communicated clearly, including any other applicable fees that are lawful and properly disclosed.
2. Less uncertainty when paying by card
A customer buying an item for a displayed price should not face an additional prohibited card surcharge when paying with a covered card. Other applicable charges, such as a disclosed weekend or public-holiday surcharge, may still affect the total.
3. Businesses may change their general prices
The new rules do not freeze retail prices. Businesses may incorporate payment-processing costs into the general price of their products or services. Customers should compare the total prices offered by different providers rather than assume that every business will keep its previous advertised price.
4. Other fees may still apply
The reform is specifically about card payment surcharges. It does not automatically remove every fee charged by a retailer, restaurant, booking platform or service provider. The legal position depends on the type of fee, applicable rules and how the price is disclosed.
What Does the Reform Mean for Small Businesses?
Businesses that previously added card surcharges must update their payment processes and customer-facing prices. The cost of accepting electronic payments remains a business expense, even when a separate surcharge is no longer permitted.
The government has said that the broader reforms are expected to benefit businesses by lowering certain interchange fees and improving transparency around merchant payment costs. The Treasury Ministers' announcement on 1 October 2026 estimated that the reforms would save businesses approximately A$910 million each year.
The effect on an individual business will depend on its transaction volume, card mix, payment provider, merchant service agreement and other operating costs. Some businesses may need to review their overall pricing, while others may already have included card acceptance costs in their prices.
Practical steps for businesses
- Remove covered card surcharges: Review in-store, online and invoice payment settings to ensure prohibited surcharges are no longer added.
- Contact the payment provider: Confirm that terminals, online checkouts and payment links use the correct settings.
- Review merchant fees: Compare payment plans and understand transaction charges, terminal rental fees and other service costs.
- Check advertised prices: Ensure displayed prices and customer communications accurately reflect the amount payable.
- Review discounts carefully: Payment-method discounts may remain possible, subject to applicable consumer law and network requirements.
- Train staff: Make sure employees understand the difference between a prohibited card surcharge and a separate lawful fee.
- Keep records: Retain relevant payment-provider communications and records of pricing and checkout changes.
Can Businesses Increase Prices Instead of Charging a Surcharge?
Yes. Businesses can generally recover the cost of accepting card payments by incorporating it into the overall prices of their products and services. The reform does not prevent businesses from setting their prices, but they must comply with Australian Consumer Law and avoid misleading customers.
For example, a business that previously displayed a product at A$100 and added a separate covered-card surcharge cannot continue adding that prohibited fee from the effective date. It may instead decide to change the product's general price, provided the pricing is lawful and not misleading.
This distinction matters because a general price change is not the same as charging a customer extra specifically for using a covered card. The ACCC says businesses must not make false or misleading claims about prices or the reasons for price increases.
Consumers should compare total prices and check the details of any advertised discounts or additional charges. Businesses should consult their payment service provider and the official consumer-law guidance if they are uncertain how a proposed pricing structure applies to their operations.
Are Weekend and Public-Holiday Surcharges Still Allowed?
The card surcharge changes do not automatically prohibit weekend surcharges, public-holiday surcharges, booking fees or service fees. The RBA and ACCC distinguish charges based on the payment method from other types of fees.
For example, a restaurant may still be able to apply a weekend or public-holiday surcharge where the relevant laws and disclosure requirements permit it. That charge is different from an extra fee applied only because a customer pays with a Visa or Mastercard card.
Businesses must still comply with applicable state and territory laws, industry-specific rules and Australian Consumer Law. The exact requirements may depend on the service, the way the fee is calculated and how the final price is presented to customers.
Consumers who are unsure about a fee should ask the business what the charge represents and review the price information supplied before making a purchase.
What Should You Do If a Business Still Adds a Card Surcharge?
If a business appears to charge a separate fee for a covered card payment after 1 October 2026, customers can take practical steps to clarify the transaction and raise the issue through the appropriate channel.
- Check the receipt: Look for a separate line item that appears to be a fee for using a covered card.
- Ask the business: Request an explanation of the charge and whether it is a card payment surcharge or another type of fee.
- Contact the payment provider if appropriate: The card network or payment service provider is responsible for enforcing its own no-surcharge rules under the relevant arrangements.
- Contact your state or territory consumer protection agency: It may be able to help with concerns about a business and its pricing practices.
- Report misleading pricing: The ACCC accepts reports about consumer issues and uses them to inform its compliance and education work. It does not enforce the card networks' no-surcharge rules or resolve every individual complaint.
Keep the receipt and any relevant price display or transaction details. These records can help explain what was charged and why you believe the fee may be incorrect.
How Do the Changes Affect Bank Fees and Credit Card Rewards?
The end of card surcharges is part of a broader RBA review of merchant card payment costs. The reform also includes changes to interchange fee caps and measures designed to improve transparency around payment service costs.
Interchange fees are wholesale fees associated with card transactions between financial institutions. Changes to these fees can affect the economics of card payments for merchants and card issuers, but the effect on each business or cardholder will depend on the arrangements involved.
The RBA has noted that card issuers may consider changing credit card rewards, pricing or other benefits in response to changes in interchange fee revenue. These product decisions are made by individual financial institutions and are not identical across all cards.
Cardholders should check the current terms, annual fees, rewards earn rates and benefits of their own card. The surcharge reform does not guarantee that rewards programs or card fees will remain unchanged.
What Other Payment Reforms Are Coming in 2026 and 2027?
The removal of card surcharges is one part of a broader set of reforms. The RBA has published an implementation timeline for changes to interchange fee caps and payment fee transparency.
| Date | Key development |
|---|---|
| 1 October 2026 | Covered card surcharging ended under the relevant network rules, and lower caps on domestic interchange fees took effect. |
| 30 October 2026 | Designated card networks and large acquirers are required to begin publishing specified information about card payment fees. |
| 30 January 2027 | Large acquirers are required to begin publishing information about how interchange fee reductions have flowed through to merchant service fees. |
| 1 April 2027 | Interchange fee caps for foreign-issued card transactions acquired in Australia are scheduled to apply, alongside more detailed merchant statement requirements for acquirers. |
The dates above reflect the RBA's published implementation summary. Businesses should review the official guidance for detailed requirements, transition arrangements and any changes to the timeline.
Frequently Asked Questions
1. When did Australia's card surcharge changes start?
The relevant no-surcharge rules took effect on 1 October 2026 for covered card payments.
2. Can Australian businesses still charge a Visa surcharge?
No. Businesses cannot add a separate surcharge for covered Visa credit, debit and prepaid card payments under the applicable no-surcharge rules.
3. Does the rule cover Mastercard and eftpos?
Yes. The changes cover Mastercard credit, debit and prepaid cards and covered eftpos debit and prepaid transactions.
4. Are American Express surcharges also ending?
American Express announced that it would remove surcharging from 1 October 2026 under its own arrangements.
5. Can businesses increase their general prices?
Businesses can generally set their overall prices to recover operating costs, including card acceptance costs, but they must comply with consumer law and must not mislead customers about prices.
6. Are weekend and public-holiday surcharges banned?
Not by this card-surcharge reform alone. Such charges may still be permitted when they comply with applicable laws and disclosure requirements.
7. Can a business charge a booking or service fee?
The card-surcharge changes do not automatically prohibit booking or service fees. Their legality depends on the type of fee and the rules that apply to the transaction.
8. Who enforces the no-surcharge rules?
The card networks and payment service providers are responsible for enforcing their applicable no-surcharge rules. The ACCC and state and territory consumer protection agencies oversee relevant consumer-law issues, including misleading pricing.
9. Will businesses stop paying card-processing fees?
No. Businesses still pay costs to accept card payments. The reform changes how covered card surcharges can be passed on to customers and forms part of wider reforms to merchant payment costs.
10. Where can consumers find official information?
Consumers can read the ACCC guidance on card surcharges and the RBA's frequently asked questions about the removal of card payment surcharges.
Official Government Sources
Australian Competition and Consumer Commission (ACCC)
Official consumer guidance on covered card surcharges, other fees, price changes and reporting concerns about misleading pricing.
Read the ACCC card surcharge guidanceReserve Bank of Australia (RBA)
Frequently asked questions covering the new rules, card networks, merchant costs, payment provider support and implementation dates.
Read the RBA surcharge reform FAQsAustralian Treasury Ministers
Joint government announcement dated 1 October 2026 confirming that credit and debit card surcharges ended and outlining the expected benefits of the wider reforms.
Read the Treasury Ministers' announcementAustralian Small Business and Family Enterprise Ombudsman
Business support and resources for small enterprises navigating payment costs and business obligations.
Visit the official small business ombudsman websiteFinal Takeaway
Australia's card surcharge changes took effect on 1 October 2026. Businesses can no longer add separate surcharges to covered Visa, Mastercard, eftpos and American Express card payments. The reform is intended to make checkout prices clearer while broader changes address merchant payment costs and fee transparency.
Consumers should check the total price and distinguish card surcharges from other fees that may still be lawful. Businesses should update payment systems, review merchant agreements and ensure all prices are presented accurately. For specific questions, use the official RBA and ACCC guidance rather than relying on general interpretations of the new rules.
