The surcharge ban is almost here: what actually changes on 1 October
Compayr Research · · 5 min
From 1 October 2026, businesses can no longer add a surcharge to cover the cost of accepting eftpos, Mastercard or Visa payments [1]. It is one of the biggest shifts in how Australian merchants handle card costs in years. Here is a plain recap of what changes — and what does not.
What ends
Surcharging on eftpos, Mastercard and Visa stops. American Express has voluntarily agreed to remove its surcharging as well [1]. The change comes from the RBA, which found surcharging was no longer working as intended [2].
The numbers behind it
- Only about 16% of Australian businesses currently pass on a surcharge [1].
- The RBA reports small-business card costs generally run between 0.85% and 2% for debit/eftpos and 1% and 2% for credit [1].
- The reform also cuts the wholesale interchange caps that sit under those costs [2].
What you can still charge
The ban is specific. According to the reporting, you can still:
- Apply weekend or public-holiday surcharges, provided they are not framed as a card-payment cost.
- Charge booking or service fees that are unrelated to payment processing.
- Set a card payment minimum.
What it means for merchants
With surcharging gone on the major networks, the cost of acceptance becomes a line on your own P&L rather than something customers cover at the till. That makes two things worth understanding: the rate you are on, and whether least-cost routing is enabled for contactless debit.
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More on the reforms: October 2026 Reform Hub.
Figures are drawn from the sources cited and are indicative — confirm specifics with your provider. General information, not financial or legal advice.
References
- [1] SmartCompany, "Card surcharges end on October 1. Here's everything you need to know", 1 September 2026.
- [2] Reserve Bank of Australia, "Review of Merchant Card Payment Costs and Surcharging", 2026. https://www.rba.gov.au/
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