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Surcharging on Visa, Mastercard and eftpos ends in 13 days — 1 October 2026.See what it costs you

Resource hub · Australian merchants

The October 2026 payment reforms: a merchant’s resource hub

From 1 October 2026, surcharging ends on eftpos, Mastercard, Visa and American Express, and the cap on domestic credit-card interchange falls from 0.8% to 0.3%. These changes are driven by the RBA’s review and enforced through the card schemes’ operating rules. This hub explains what actually changes and points you to the authoritative sources — most of which are not ours.

14 daysSurcharging on Visa, Mastercard and eftpos ends in 14 days — 1 October 2026.

Compayr is a free self-service comparison tool for merchant card transaction costs. This is a publisher resource: we link to official and industry sources so you can check the reform for yourself.

Want to know what it will cost you? The surcharge ban cost calculator estimates how much of the card fee your business will absorb once you can't pass it on from 1 October 2026.

Surcharge ban cost calculatorCompare my rate
Plain English

What actually changes on 1 October

Surcharging ends

From 1 October 2026 you cannot add a surcharge to a payment on eftpos, Mastercard, Visa or American Express. This is driven by the RBA's review and enforced through the card schemes' operating rules. Buy-now-pay-later services are not covered by the ban, but most BNPL contracts already prohibit surcharging — check your agreement.

Interchange caps fall

On the same day, the cap on domestic credit-card interchange falls from 0.8% to 0.3%. That is a 62.5% reduction in the cap — one wholesale input on one card type — not a 62.5% cut to your merchant fee. What reaches your bill depends on how your provider prices you.

What it means if you currently surcharge

The revenue offset you get from surcharging disappears. The cost of accepting cards moves onto your profit-and-loss. Merchants on surcharge-funded or “zero-cost” plans see the largest change, because their pricing model ends on 1 October.

What it means if you don't surcharge

Your provider's wholesale cost falls, but whether you see any of it depends on your pricing model. On interchange-linked (cost-plus) pricing the reduction flows through mechanically. On a flat rate, your percentage does not change on 1 October unless you renegotiate or switch — the wholesale saving is retained by the provider as margin. Neither model is wrong; the point is to know which one you're on.

Official & regulatory

Go to the source

The primary and regulatory sources for the reform. Each link is a specific page, with the date we last checked it.

Reserve Bank of AustraliaPrimary sourceReview of Merchant Card Payment Costs and Surcharging — Conclusions PaperThe primary source for the reforms: the surcharge ban and interchange-cap decisions, and the RBA's reasoning.Opens rba.gov.au · checked 20 August 2026Reserve Bank of AustraliaMost merchant-usefulFAQs — Removal of payment surcharges from 1 October 2026The most merchant-useful single page: plain answers to who and what the surcharge removal covers.Opens rba.gov.au · checked 20 August 2026Reserve Bank of AustraliaPayments DataThe RBA's durable statistics hub for card payments, costs and volumes.Opens rba.gov.au · checked 20 August 2026Australian Competition & Consumer CommissionMay update around implementationCard surcharges — business guidanceThe ACCC's guidance for businesses on card surcharging and how it is expected to apply.Opens accc.gov.au · checked 20 August 2026Australian Taxation OfficeConfirm currency of rulingGSTR 2014/2 — GST treatment of card surchargesThe GST ruling on credit and debit card surcharges. Confirm the currency of the ruling before relying on it.Opens ato.gov.au · checked 20 August 2026

Compayr is not affiliated with, and does not speak for, any government body or regulator. Logos identify each organisation for navigation only. Links open external websites that Compayr does not control.

From the providers

What your provider is telling merchants

Each provider’s own guidance about its own service, listed alphabetically. Compayr does not endorse any of them.

CommBankRBA card surcharge reformsCommBank's own summary of the reforms for its merchant customers.Opens commbank.com.au · checked 20 August 2026NABOperational detailRBA surcharging changes — what you need to knowThe most operationally useful provider page: terminal updates, third-party POS, and removing surcharge signage by 30 September 2026.Opens nab.com.au · checked 20 August 2026SquareThe RBA is changing card surchargingSquare's own explainer of the changes for its sellers.Opens squareup.com · checked 20 August 2026TyroRBA surcharge ban confirmed — what your business needs to knowTyro distinguishes surcharging it manages from surcharging set in an integrated POS.Opens tyro.com · checked 20 August 2026Westpac IQDated Apr 2026Surcharging ban: how to get readyWestpac IQ's preparation article for merchants (dated April 2026).Opens westpaciq.com.au · checked 20 August 2026WestpacPre-reform frameworkCost of acceptance (current framework)Westpac's cost-of-acceptance page describing the pre-reform framework.Opens westpac.com.au · checked 20 August 2026ZellerProvider marketingWhat the RBA's surcharging announcement meansZeller's own position on the announcement — provider marketing, presented neutrally.Opens myzeller.com · checked 20 August 2026
Industry bodies

What the associations are saying

Restaurant & Catering Australia (R&CA)Card surcharge ban: what it means for hospitality operatorsSector response and a call for transition support (media release).represents 57,000+ foodservice businesses — the organisation’s own published figure, checked 20 August 2026.Opens rca.asn.au · checked 20 August 2026Australian Retail CouncilRBA surcharge ban to hit small retailersThe council's 31 March 2026 position on pass-through to small retailers.represents 12,000+ Australian businesses — the organisation’s own published figure, checked 20 August 2026.Opens retail.org.au · checked 20 August 2026COSBOABanning card surcharging without guaranteed lower feesCOSBOA's small-business policy position on the reform.peak small-business body — the organisation’s own published figure, checked 20 August 2026.Opens cosboa.org.au · checked 20 August 2026Australian Restaurant & Cafe Association (ARCA)Dated 2025Let's Get This Right, Not RushedA 2025 advocacy campaign, published before the final reform — dated context.represents 56,000+ restaurants and cafés — the organisation’s own published figure, checked 20 August 2026.Opens arca.org.au · checked 20 August 2026Australian Hotels Association (national)Historical (2024)Card SurchargesThe AHA's 2024 position on the proposed ban — historical context.represents 5,000+ venues — the organisation’s own published figure, checked 20 August 2026.Opens aha.org.au · checked 20 August 2026Australian Hotels Association NSWMembership page onlyMembershipNo public reform guidance was verified; the membership page is linked for reference only.represents 1,800 licensed premises in NSW — the organisation’s own published figure, checked 20 August 2026.Opens ahansw.com.au · checked 20 August 2026

These organisations are listed as resources we encourage merchants to explore. Compayr is not affiliated with, endorsed by, sponsored by or partnered with any of them. Logos identify each organisation for navigation only. Membership figures are each organisation's own published claim, checked on the date shown. Links open external websites that Compayr does not control.

From Compayr

Our free tools

Surcharge Ban CalculatorWhat the 1 October ban could cost you if you surcharge today.Compare your rateYour real cost of card acceptance at your turnover and card mix — in about 60 seconds.Upload a statementSend a statement for a detailed cost breakdown.Provider directoryThe providers we track, ranked by estimated card acceptance cost.Knowledge CentrePlain-English guides to the October 2026 reforms.Payments glossaryInterchange, scheme fees, least-cost routing and more, defined.How we compareOur cost-first method, in full.
Free downloads

Merchant toolkit

Print-ready, one-page resources you can use or share. General information, not advice.

Questions to ask your payment provider before 1 OctoberA one-page checklist of questions to put to your provider — questions only, no suggested answers.PDF · A4 · print-ready · 204 KBYour October readiness checklistA plain, tick-box list of things a merchant may want to confirm before 1 October.PDF · A4 · print-ready · 203 KBUnderstanding your merchant statementAn annotated, illustrative one-pager showing where the fees sit on a statement (example, not a real statement).PDF · A4 · print-ready · 203 KBCounter card: “From 1 October we can no longer add a card surcharge”A plain A6 note a venue can display or use to brief staff. No sales message.PDF · A6 · print-ready · 202 KB
Key dates

The reform timeline

  1. 1 October 2026

    Surcharging ends + interchange caps fall

    Surcharging on eftpos, Mastercard, Visa and American Express ends under the card schemes' operating rules. On the same day the cap on domestic credit-card interchange falls from 0.8% to 0.3% (a 62.5% reduction in the cap — not a cut to your merchant fee).

    Source: RBA Conclusions Paper (31 March 2026)

  2. 30 October 2026

    Acquirer fee-disclosure obligations

    Enhanced fee-disclosure obligations on acquirers begin, improving how the cost of acceptance is presented to merchants.

    Source: RBA Conclusions Paper (31 March 2026)

  3. 1 April 2027

    Foreign-card interchange caps + fee-transparency requirements

    Caps on foreign-issued card interchange and enhanced fee-transparency / statement requirements take effect — the next milestone the sitewide countdown points to after 1 October.

    Source: RBA Conclusions Paper (31 March 2026)

Questions

Frequently asked questions

How much will the surcharge ban cost my business?
From 1 October 2026 you can no longer add a surcharge to card payments, so the fee you used to pass on becomes a cost your business absorbs. Compayr's surcharge ban cost calculator (https://compayr.com.au/surcharge-calculator) estimates that absorbed cost — per month and per year — from your card turnover and current surcharge %, and estimates the potential saving on a lower-cost plan. Figures are indicative estimates in Australian dollars; confirm pricing with your provider.
Does the surcharge ban apply to American Express?
Yes. American Express has confirmed it will follow the same rule as eftpos, Mastercard and Visa, so surcharging American Express ends on 1 October 2026 as well. Surcharging stops across every major card network on the same day.
Can I raise my prices instead of surcharging?
The reform stops you adding a card surcharge; it does not set your prices. Whether and how you adjust prices to reflect your cost of acceptance is a commercial decision for your business. Industry bodies have discussed the pressure this places on thin-margin operators.
What if I'm on a zero-cost or surcharge-funded plan?
Surcharge-funded and “zero-cost” models rely on passing the fee to the customer, which the ban stops from 1 October 2026. If you are on one of these plans, your provider's replacement pricing determines your new cost — ask them for it in writing.
Will my rate automatically drop on 1 October?
Not necessarily. On interchange-linked (cost-plus) pricing the interchange-cap reduction flows through to your bill. On a flat rate your percentage stays the same unless you renegotiate or switch — the wholesale saving becomes provider margin.
What is least-cost routing?
Least-cost routing sends a contactless debit tap through the cheaper of the two networks on the card — usually eftpos rather than Visa or Mastercard. It can lower your cost of acceptance on debit transactions; whether it is enabled on your terminal is a question for your provider.
Do I have to change provider?
No. The reform does not require you to switch. It does change what a competitive rate looks like, which is why many merchants use the window to benchmark their current cost against the market.
What about online payments?
The surcharge ban applies to card payments regardless of channel — in person, online or over the phone. Card payments taken through an online checkout on eftpos, Mastercard, Visa or American Express are covered from 1 October 2026.
Do mobile wallets like Apple Pay and Google Pay count?
Yes. A card loaded into a mobile wallet is still a card transaction on its underlying network — a Visa card in Apple Pay is a Visa transaction. The wallet is only the delivery method, so the same surcharge ban applies.
Is the 62.5% interchange cut a 62.5% cut to my fees?
No. The 62.5% figure is the reduction in the cap on domestic credit-card interchange (0.8% to 0.3%) — one wholesale input on one card type. Across a realistic card mix the genuine blended change is far smaller, and how much reaches your bill depends on your pricing model.
What happens if I keep surcharging after 1 October?
Surcharging on the covered networks is no longer permitted under the card schemes' operating rules from 1 October 2026, and the ACCC provides business guidance on the change. Rebadging a card surcharge as a “service fee” that only applies to card payers does not avoid the rules. Confirm your obligations with your provider and the ACCC.

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