For years the question with card surcharging was how to do it correctly. From 1 October 2026 the question changes, because the Reserve Bank is removing it. Surcharging on eftpos, Mastercard and Visa - across debit, prepaid and credit - is being banned, and the cost of accepting cards will have to be built into your prices instead of added at the terminal. For hospitality and retail that is a real change to how you price and how your systems are set up, and it is worth getting ahead of. (This is general information, not legal or financial advice - check the RBA and your own provider for the detail that applies to you.)
What is changing on 1 October 2026
The RBA has decided to remove the ability to surcharge on the major card networks - eftpos, Mastercard and Visa - covering debit, prepaid and credit cards. From that date you will no longer be able to add a card fee at the point of payment. The reforms also lower the interchange fees that sit underneath the cost of acceptance and require providers to be clearer about what you are paying, so the underlying cost should come down as well as the surcharge going away.
Some arrangements outside those designated networks, such as certain American Express cards, sit under different rules, so confirm the specifics for your mix of cards with your provider.
What it means for your margin
Today a surcharge passes the cost of acceptance to the customer. Once the ban starts, that cost becomes a cost of doing business, the same as rent or power. For most venues and stores that means repricing to absorb it rather than quietly wearing it, because on hospitality and retail margins even a small percentage on every card sale adds up.
This makes knowing your true cost of acceptance more important, not less. It is rarely the single number on the front of a plan - it includes scheme fees and varies by card. With the surcharge gone, that figure is money coming straight off your margin, so it is worth understanding precisely and pressing your provider on, especially with the new lower interchange caps coming in.
How to prepare before October
A short checklist: turn off surcharging in your POS and terminal configuration so it stops on the right date and not before; review your pricing and decide how you are absorbing the cost; ask your provider for your real cost of acceptance and how the new interchange caps change it; and update any signage, menus and receipts that mention a card fee.
Most of this is a configuration job in your POS and payments setup. Switching surcharging off cleanly across every site and terminal, on the right day, is exactly the kind of change that is easy to get wrong by hand and easy to get right when the system is set up properly.
Until the ban starts
Surcharging is still allowed until 1 October 2026, but the existing rule still applies: you may only recover your actual cost of acceptance, not more, and you must be transparent about it. A flat surcharge that turns payments into a profit centre is exactly what regulators have acted on, so this is not the moment to get aggressive with fees. Keep it accurate and disclosed right up to the change.
When the date comes, the cleanest transition is one where your systems flip surcharging off, your prices already reflect the absorbed cost, and your books still reconcile. If you want help making sure your payments and POS are in step for the change, tell us what you run and we will sanity-check it with you.
Frequently asked questions
- Is card surcharging banned in Australia?
- From 1 October 2026 it is. The RBA is removing surcharging on eftpos, Mastercard and Visa, covering debit, prepaid and credit cards, and the cost of accepting cards will need to be built into prices instead. Until that date, surcharging remains allowed but only at no more than your true cost of acceptance. This is general information rather than legal advice, so confirm the detail with the RBA and your provider.
- When does the card surcharge ban start?
- The ban takes effect on 1 October 2026. Surcharging on eftpos, Mastercard and Visa is allowed up until then under the existing cost-of-acceptance rule, and must stop from that date.
- Does the surcharge ban cover debit and credit cards?
- Yes. The ban applies across the major networks - eftpos, Mastercard and Visa - and covers debit, prepaid and credit cards. Some cards outside those designated networks, such as certain American Express products, sit under different rules, so check your specific card mix with your provider.
- How should businesses prepare for the card surcharge ban?
- Turn off surcharging in your POS and terminal configuration so it stops on 1 October 2026, reprice to absorb the cost of acceptance into your prices, ask your provider for your true cost of acceptance and how the new lower interchange caps affect it, and update any signage, menus and receipts that reference a card fee.