Key Highlights

  • Surcharging on designated debit, prepaid and credit card networks ended on 1 October 2026.
  • Domestic consumer credit and debit interchange caps were reduced alongside the surcharge changes.
  • Foreign-card interchange caps and some transparency measures commence on 1 April 2027.

The Reserve Bank of Australia wants consumers to see one price at the checkout because card surcharging on eftpos, Mastercard and Visa cards ended on 1 October 2026, alongside lower domestic interchange fees. Ellis Connolly, the RBA's Head of Payments Policy Department, told the AFIA Conference in Sydney on 20 October that the aim is "a world where the price that consumers see advertised is the price they'll end up paying". This was a fireside chat, not a new Payments System Board decision.

Domestic Surcharges and Interchange Caps

The changes stem from the Payments System Board's Conclusions Paper, released on 31 March 2026 (Media Release 2026-10). It ended surcharging on debit, prepaid and credit cards on the three designated networks from 1 October 2026 and lowered caps on domestic interchange fees, the fees paid between the businesses behind each card payment.

According to the Conclusions Paper, the cap on domestic consumer credit interchange falls from 0.8 per cent to 0.3 per cent, and the credit benchmark is abolished. The domestic debit and prepaid cap falls from 10 cents or 0.2 per cent to 8 cents or 0.16 per cent. The commercial credit cap stays at 0.8 per cent.

Foreign Cards and Fee Transparency

The review that produced these changes began in October 2024, drew over 260 written submissions and involved around 150 meetings, according to the RBA. A new cap of 1.0 per cent on foreign-issued card transactions, along with some transparency measures, takes effect on 1 April 2027. Connolly said large acquirers and the card schemes will have to publish more fee data so merchants can compare providers. Businesses will also receive standardised fee information on their statements.

How Lower Fees Reach Merchants

This is the open question. The RBA says lower interchange should help cut card costs, especially for small businesses, which tend to pay fees closer to the existing caps. But interchange is only one part of what merchants pay. Connolly said the RBA wants to see the reductions passed through in merchant service fees, particularly to small businesses, and the Bank says it is taking steps to encourage that.

The RBA's own summary says about 16 per cent of Australian businesses surcharge. Those that choose to recover payment costs in their prices would see sticker prices rise a little. Consumers at those businesses should pay similar totals, but through the advertised price rather than an added fee. Businesses can still offer discounts, including for cash.

Advertised Prices and Checkout Totals

The removal of surcharges changes how payment costs appear at checkout. The RBA expects any inflationary impact from merchants rounding up advertised prices to be negligible. Its implementation paper says consumers at previously surcharging merchants should not experience a material change in the total price paid.

Connolly said card payments make up about 75 per cent of payments and nearly half of card payments go through mobile wallets. Wallet fees and access to the NFC technology they use are among stakeholder concerns feeding into the Bank's wider review of payments regulation.

What to Watch Next

Connolly said the RBA intended to publish its wider payments-regulation priorities by the end of 2026, with consultation on regulatory options planned for mid-2027. The Payments System Board meets on 19 November 2026. The foreign-card cap and some transparency measures take effect on 1 April 2027.

Looking Ahead

The reforms combine the removal of designated card surcharges with lower domestic interchange caps. Their implementation also includes later transparency requirements and foreign-card changes, while the RBA’s broader review considers other parts of the payments system.