RBA banned card surcharges from October 1: What this means for your business

Sibce 1 October 2026, adding a surcharge to eftpos, Mastercard and Visa payments is banned in Australia under the card schemes’ rules, following the RBA’s reforms. If your business surcharges today, the cost of accepting cards moves onto your side of the ledger — and you will notice this when your first October statement lands.

The 30-second version

• The RBA's final ruling ended surcharging on debit, prepaid and credit cards across the eftpos, Mastercard and Visa networks from 1 October 2026 [1].
• Customers will see one price at checkout. Merchants absorb card acceptance costs — an estimated $1.6 billion a year that consumers currently pay through surcharges [2].
• At the same time, the RBA is cutting the wholesale (interchange) cap on domestic consumer credit transactions from 0.8% to 0.3% — a change designed to lower providers' costs, though what reaches your bottom line depends entirely on your pricing model [1].
• American Express isn't bound by the RBA's ban but has voluntarily agreed to end its card surcharging from 1 October 2026 too, so in practice it's covered. Mobile wallets and BNPL are not covered by the ban.

Why the RBA pulled the trigger

Surcharging was originally allowed so businesses could steer customers toward cheaper payment methods. The RBA's review concluded that logic no longer holds: with cash usage collapsing and cards dominating, surcharges stopped steering anyone and simply became a line item consumers paid without choice [1]. The Treasurer framed the ban as cost-of-living relief at the checkout [2].

For merchants, though, the cost of card acceptance doesn't vanish on 1 October — it changes address. If you surcharge today, that revenue offset disappears and the merchant service fee becomes yours to carry or to build into shelf prices.

Who feels this most

Three groups, in order of urgency:

1. "Zero cost" / surcharge-model merchants — if your terminal is on Shift4 (ex-SmartPay) Zero Cost or Tyro's "No Cost EFTPOS", your entire pricing model ended on 1 October. You go from a ~$0 monthly merchant fee to a real bill overnight.
2. Merchants who surcharge on standard plans — you keep your provider, but the offset is gone. Your effective cost of acceptance becomes a genuine P&L line.
3. Everyone else — no direct change on ban day, but the accompanying interchange reforms may shift what good pricing looks like, which makes this a smart moment to benchmark.

Your October Statement Audit checklist

• Find your last three merchant statements. You need three numbers: monthly card turnover, card mix (debit vs credit), and all fees. Fees ÷ turnover = your effective rate.
• Identify your pricing model. Flat rate, interchange-linked ("cost plus"), or surcharge-funded. It's on your statement or your original agreement.
• Model your post-October cost. Especially if you're on a surcharge model — check against the first statement to find out.
• Benchmark before you renegotiate. Comparing card processing costs (rate + rental + fees), not headline rates, is the only comparison that matters.

What this means for you

If you never surcharged and you're on a standard plan, 1 October changes little immediately — but it's still the best excuse in a decade to check whether your rate is competitive. If you surcharged and especially if you're on a zero-cost model, you have a decision: model your new cost, compare the market, and leave time for a switch (terminal delivery and setup can take weeks).

Run your numbers: Compayr's comparison engine ranks 15 providers by card processing costs at your actual turnover and card mix — not headline rates. Compare now →

Rates and provider details referenced across the Compayr Knowledge Centre are indicative, last verified November 2026 — always confirm directly with the provider.