RBA surcharging changes: What businesses need to know before 1 October 2026

The Reserve Bank of Australia (RBA) has announced significant changes to Australia's card payments framework. From 1 October 2026, businesses will no longer be permitted to apply surcharges to Visa, Mastercard and EFTPOS card payments. 

These changes form part of a broader package of reforms under the RBA's Review of Merchant Card Payment Costs and Surcharging, which aimed at simplifying card payments and reducing payment costs for Australian businesses and consumers.

What is changing?

Surcharging will end for Visa, Mastercard and eftpos

From 1 October 2026, businesses will no longer be able to add a surcharge when a customer pays using an eligible Visa, Mastercard or eftpos card.

The change applies to:

• Debit cards
• Prepaid cards
• Consumer credit cards
• Commercial credit cards issued through the designated networks

Businesses that currently recover card acceptance costs by adding a surcharge at checkout will need to update their payment processes before the deadline.

The RBA introduced the current surcharging framework more than two decades ago. It was intended to encourage customers to choose cheaper payment methods and give businesses a way to recover the cost of accepting cards.

Following its review, the RBA concluded that the framework was no longer working as intended. Card payments are now widely used in Australia. Consumers can find it difficult to avoid surcharges and the rules have become more complex for businesses to manage.

When the change takes effect, the price displayed to a customer will need to include the cost of accepting eligible card payments. Businesses will still be able to offer discounts, including discounts for customers who pay with cash.

Interchange fee caps will be reduced

The RBA is also lowering some of the interchange fee caps that apply to domestic card transactions.

Interchange is one component of the total fee a business may pay when accepting a card. It is generally paid by the merchant’s payment provider or acquiring bank to the bank that issued the customer’s card. That cost can then form part of the merchant service fee charged to the business.

From 1 October 2026:

• The interchange cap for domestic consumer credit card transactions will be reduced to 0.3 per cent of the transaction value.
• The cap for domestic debit and prepaid card transactions will be reduced to 8 cents per transaction, or 0.16 per cent where a percentage-based fee applies.
• The cap for domestic commercial credit card transactions will remain at 0.8 per cent.

A new interchange cap of 1 per cent will also apply to foreign card transactions acquired in Australia from 1 April 2027.

The RBA expects the lower caps to reduce card acceptance costs particularly for smaller businesses that often have less bargaining power when negotiating merchant fees.

The final impact will vary between businesses. Merchant service fees can include interchange, card network fees, payment provider costs and other service charges. A reduction in interchange will not necessarily result in an equivalent reduction in the total fee charged to every merchant.

Payment fees will become more transparent

The reforms also introduce new reporting and disclosure requirements across the payments industry.

Visa, Mastercard and eftpos will be required to publish quarterly information about interchange fees, scheme fees and rebates. This information will include breakdowns across different card and transaction types.

Large acquiring banks and payment providers will also be required to publish merchant fee information by card type and merchant size. The requirements apply to acquirers processing more than $10 billion in Australian card transactions annually through direct merchant relationships.

Merchant statements will contain more standardised information, including clearer breakdowns of:

• Domestic and foreign-issued card transactions
• Card present and card-not-present (CNP) payments
• Different card types and associated costs

These measures are intended to help businesses understand what they are paying, compare providers more accurately and assess whether their payment arrangements remain competitive.

The first quarterly publications are expected by 30 October 2026, covering the period from 1 July to 30 September 2026.

What is not changing on 1 October?

The current surcharging rules remain in place until 1 October 2026. Businesses may continue to surcharge eligible card payments in line with existing rules until that date.

The announced ban specifically applies to the designated Visa, Mastercard and eftpos networks. It does not automatically extend to other payment systems, including American Express and buy now, pay later services.

The RBA is considering the treatment of other payment systems through a separate review. Further changes may follow, but businesses should continue to apply the current rules unless advised otherwise.

What should businesses do now?

While the changes do not take effect until October 2026, businesses should ensure they understand how the new rules may apply to their payment processes.

This may include reviewing existing surcharging arrangements or understanding which payment methods are affected. Monitor updates from payment providers over the coming months.

Businesses should also confirm who is responsible for removing surcharges. In some arrangements, the payment provider manages the surcharge settings. In others, the merchant controls them through its own billing, checkout, or POS system.

Want more guidance? Novatti can help!

Novatti is reviewing the reforms and the changes required across relevant payment services ahead of the October 2026 deadline.

Affected customers will be contacted directly where system updates or customer action are required. We will continue to monitor the implementation of the RBA’s reforms and provide further information as the deadline approaches.

If you have questions about the upcoming changes or how they may apply to your Novatti payment services, please contact your Novatti representative or reach out to us here. 

Further information on the RBA's Review of Merchant Card Payment Costs and Surcharging is available on the Reserve Bank of Australia website.