Credit card surcharges have been banned in Australia - Latest News

Apr 02, 2026

The RBA is officially killing card surcharges, fundamentally changing how Australians settle the bill.

The Reserve Bank of Australia (RBA) yesterday announced that it would be overhauling card payments, officially scrapping surcharges on debit, prepaid and credit cards across the eftpos, Mastercard and Visa card networks.

Introduced more than 20 years ago, the original surcharging system was designed to steer consumers toward more efficient payment choices. However, the RBA has concluded that the regime “is no longer achieving its intended purpose”.

Here’s everything you need to know about the RBA surcharge ban, why it’s happening and how it will impact your wallet.

Why is the RBA removing the surcharge?

The payment landscape has changed drastically over the last two decades. With consumers carrying less cash and most businesses applying the exact same flat surcharge to all card types, the current system has lost its effectiveness.

By removing the surcharge, the RBA aims to make card payments simpler and far more transparent. The aim is also to increase competition among payment service providers.

Once the ban comes into effect, the cost of processing a payment will be incorporated directly into the advertised price of a product or service. While this means the base price of some goods may become slightly more expensive, the RBA believes that this upfront transparency is exactly what consumers want.

eftpos — Previously hidden surcharges will now be displayed upfront.

Where you might see prices rise

Only around 16 percent of Australian businesses actively apply a surcharge. However, you’re most likely to see businesses factor processing costs into their advertised prices in sectors where surcharging is heavily concentrated:

Hospitality: restaurants, pubs and cafes
Travel and tourism: airlines, hotels and travel agents
Small and family businesses
Personal services: such as hair and beauty treatments

Overall, the RBA estimates that removing the surcharge will save consumers around $1.6 billion per year.

Visa and Mastercard will soon no longer attract surcharges.

A $900 million boost for small businesses

To support smaller merchants absorbing these costs, the RBA is drastically reducing interchange fees – the behind-the-scenes wholesale fees that a business’ bank charges the customer’s bank during a transaction.

By dropping these interchange caps, the RBA expects the reforms to save Australian businesses approximately $900 million per year.

To spark further competition, the RBA is also making it mandatory for all card networks and payment providers to be fully transparent with their merchant fees. This will allow small businesses to easily shop around for the best deals on their payment terminals.

mobile wallet digital tap and go — The RBA is calling for public consultation on mobile wallets.

Will the surcharge ban impact credit card reward programs?

If you’re a frequent-flyer points chaser, take note: banks rely heavily on interchange fees to fund premium credit card reward programs.

Because the RBA is drastically slashing these fees, you can expect to see rewards programs become less generous or the annual fees on premium credit cards to increase.

When does the surcharge ban start?

The surcharge ban, along with most new regulations, will come into effect on October 1, 2026.

What’s next for retail payments?

The RBA isn’t stopping at standard card networks. In mid-2026, it plans to launch a public consultation to assess the public interest in regulating other rapidly growing areas of the retail payments system, including: