The end of card surcharging on 1 October does not ban every extra charge. For businesses, the key is understanding which fees remain permitted and which are now off the table.

For a business owner, the new rules can be summed up in one sentence: from 1 October 2026, you cannot charge customers extra for paying by eftpos, Mastercard, Visa or American Express, but some other fees and pricing tools remain available.

Applying that sentence in practice is where the detail matters. The Reserve Bank's Review of Merchant Card Payment Costs and Surcharging, which concluded in March 2026, drew a line between charges tied to how a customer pays and charges tied to something else, such as when they buy or what service is being provided. Understanding that line is now part of running a business that takes cards.

What is out, and what is still in

Card surcharges end on 1 October on eftpos, Mastercard, Visa and American Express. The ban covers credit, debit and prepaid cards.

A card surcharge is, in essence, an additional amount added to a transaction because the customer chose to pay with a card. Under the new arrangements, businesses can no longer add that amount for any of the covered networks or card types. The RBA says about 16% of Australian businesses currently surcharge, so for a meaningful minority of merchants the change requires adjustments to pricing, point-of-sale settings or signage.

According to the RBA's review materials, several charges and practices are still allowed:

  • Weekend surcharges.
  • Public holiday surcharges.
  • Booking fees and service fees.
  • Discounts for particular payment methods.

Taxi surcharging also sits outside the reform. It remains the responsibility of state and territory regulators.

The common thread is that permitted fees are linked to the timing of a purchase or the nature of the service, rather than to the payment method itself. A weekend surcharge applies because of when a customer buys. A booking fee relates to the service of making a reservation. Neither depends on whether the customer pays by card or by some other means.

Walking the line

The distinction is conceptually clear, but it raises practical questions for businesses. A few worth considering, in general terms:

  • Is a given fee charged regardless of how the customer pays? If an extra amount appears only when a card is used, it is likely to look like a card surcharge.
  • Is the fee clearly connected to a booking, a service, a weekend or a public holiday? Permitted categories are defined by what they relate to, not by what a business chooses to call them.
  • Is a discount genuinely a discount? Offering a lower price for a particular payment method is allowed. Businesses may wish to think about how any such discount is presented so that it is clearly a reduction from the displayed price.
  • Where does the business operate? Taxi operators, for example, work under state and territory rules rather than the RBA reform.

These are the kinds of questions a business might raise with its payment provider, industry association or professional adviser. The RBA's non-technical summary and FAQs are the primary public references for how the rules are intended to work.

The broader point is that relabelling does not change the substance. A charge that functions as a fee for paying by card is still a card surcharge, whatever it is called on a receipt.

The cost side of the equation

The end of surcharging does not remove the cost of accepting cards. That is why the RBA's reforms also target those costs directly.

Maximum interchange fees have been lowered for consumer credit and debit card payments. Interchange is a fee paid between the financial institutions involved in a card transaction, and it forms part of what a merchant's payment provider charges. A new cap also applies to foreign, or overseas-issued, card transactions, which is relevant for businesses serving international visitors. The RBA says reductions in interchange "should help to lower card payment costs for businesses, especially small businesses".

Transparency measures are intended to help merchants see and compare what they pay. Large acquirers must publish the fees they charge. Eftpos, Mastercard and Visa must disclose fee information. Merchant statements are to include standardised fee information, which should make it easier to understand what is being charged and to compare offers.

The amended RBA standards took effect in April 2026, giving businesses some months of lower interchange caps and greater fee disclosure before surcharging ended. The review behind these changes received over 260 written submissions and involved about 150 industry meetings.

Pricing choices after 1 October

For businesses that have relied on surcharges, the question is how to handle the cost that surcharging used to cover. The RBA has noted that surcharging businesses may choose to raise sticker prices. Other options that the rules leave open include absorbing the cost, reviewing payment provider arrangements in light of new fee disclosures, or offering discounts for particular payment methods.

Each approach carries trade-offs. Higher displayed prices spread the cost across all customers. Discounts for other methods may encourage some customers to switch but reduce revenue on those transactions. Absorbing costs affects margins. Which mix makes sense will depend on each business's circumstances, customers and costs.

The timing adds pressure. The change arrives as the RBA has lifted the cash rate target to 4.60%, effective 30 September, and as the Monetary Policy Board noted that "Firms are experiencing cost pressures" and are increasing or planning to increase prices. Governor Michele Bullock said at her 29 September media conference: "I know this decision is difficult for households with a mortgage and businesses." For merchants already managing rising input costs, the end of surcharging is another variable in pricing decisions.

The bottom line

From 1 October 2026, businesses cannot surcharge for payments on eftpos, Mastercard, Visa or American Express, including credit, debit and prepaid cards. Weekend and public holiday surcharges, booking and service fees, and discounts for particular payment methods remain permitted, while taxi surcharging stays with state and territory regulators.

The line runs between fees tied to the payment method and fees tied to something else. Alongside lower interchange caps and new fee transparency, the reform is designed to lower and clarify card costs, especially for small businesses. Merchants unsure how their own fees fit can consult the RBA's published FAQs.