Highlights

  • New card Surcharge rules remove surcharges for designated card payment networks from 1 October 2026.
  • The changes apply to eftpos, Mastercard and Visa card payments under the updated framework.
  • Interchange fee caps have been adjusted as part of broader payment cost reforms.
  • Businesses may review pricing structures and payment arrangements following the changes.
  • The impact on individual businesses will depend on payment costs, pricing decisions and provider arrangements.

Australian payment rules are undergoing changes that affect how businesses manage card payment costs. The updated framework removes certain card surcharges and introduces revised interchange fee caps. The changes are intended to alter the way payment costs are managed between merchants, payment providers and consumers.

Card Surcharge Changes

From 1 October 2026, businesses will no longer be able to apply surcharges for payments made through eftpos, Mastercard and Visa networks. The changes follow a review of merchant card payment costs and the existing surcharge framework.

The updated rules apply to payments made on or after the effective date. Businesses that previously applied card surcharges may need to review their payment settings, customer pricing structures and internal processes to comply with the revised requirements.

Interchange Fee Reforms

Alongside the surcharge changes, revised interchange fee caps have been introduced. Domestic debit and prepaid card interchange fees are capped at 8 cents per transaction or 0.16% on an ad valorem basis.

Consumer Credit card interchange fees are capped at 0.3% of transaction value, replacing the previous higher cap framework. Commercial credit card interchange fees remain unchanged at 0.8%.

The reforms are designed to influence payment costs within the card ecosystem. The effect on individual businesses will depend on existing payment arrangements, negotiated rates and how providers pass through changes in underlying costs.

Impact on Businesses

Small businesses may need to assess how the removal of surcharges affects pricing decisions. Businesses that previously recovered card payment costs through separate fees may need to consider alternative ways of managing payment expenses.

The final impact will vary between businesses depending on transaction volumes, payment methods used by customers and the terms agreed with payment service providers.

Consumer Payment Considerations

For consumers, the removal of card surcharges changes how payment costs are displayed during transactions. Businesses may continue to offer discounts for certain payment methods where permitted under the rules.

The broader effect on retail pricing will depend on how businesses adjust their pricing structures after the reforms take effect. Payment costs represent one component of overall Business expenses.

Implementation and Monitoring

The updated payment framework includes monitoring measures designed to assess how changes flow through the payment system. Future reporting will provide information on interchange fee movements and whether cost reductions are reflected across the market.

Businesses and payment providers will continue adapting systems and processes as the new requirements become operational.

Key Insights

The card surcharge reforms represent a significant change to payment cost management in Australia. The removal of certain surcharges and revised interchange fee settings will affect merchants and consumers differently depending on payment practices, pricing structures and provider arrangements.