So the RBA bans credit card surcharges… what does this mean for you as a business owner?

From 1 October 2026, the Reserve Bank of Australia (RBA) is introducing one of the biggest changes to Australia’s payments system in decades — a full ban on credit and debit card surcharges.

For years, businesses have been able to pass on card fees to customers. That’s about to change… and it will impact how every business prices, plans and manages costs.

What’s actually changing?

Under the new rules:

• ❌ No more surcharges on EFTPOS, Visa or Mastercard transactions
• 💳 All card fees must be built into your pricing
• 🔍 Greater transparency from banks and payment providers
• 📉 Interchange fees (bank fees) will be reduced and capped

This means customers will no longer see that extra 1–2% added at the checkout — instead, pricing will need to be all-inclusive upfront.

What are businesses paying now?

Right now, most businesses are paying:

• Credit cards: around 1%–2% per transaction
• Debit cards: around 0.5%–1% per transaction
• American Express: often 1.5%–3%+

That’s why many businesses introduced surcharges in the first place — to avoid absorbing these costs themselves.

What will the new capped fees look like?

As part of the reform:

• 💳 Credit card interchange fees will drop from ~0.8% to 0.3%
• 💳 Debit fees will also be reduced significantly

This is a big deal. While you can no longer charge customers directly, the cost to your business should reduce  — especially if you’re currently paying higher merchant fees.

Why is the RBA doing this?

The RBA says the current system:

• Is confusing for customers
• Has become inconsistent and sometimes excessive
• No longer works in a mostly cashless economy

The goal is simple:
👉 Clearer pricing for customers
👉 Lower overall payment costs
👉 More competition between payment providers

What does this mean for your business?

This is where it really matters.

1. You’ll need to rethink pricing

You can’t add a surcharge anymore — so you’ll need to:

• Build costs into your pricing
• Adjust margins
• Consider rounding or slight increases

Many businesses are already saying this could lead to price increases across the board.

2. Your payment costs become a core expense

Card fees move from a “pass-through” cost to a real business expense — just like rent or wages.

3. There’s an opportunity to shop around

With new transparency rules coming:

• Banks and providers must be clearer about fees
• You’ll be able to compare and switch more easily

This could save your business money long-term.

4. Customer experience improves

No more awkward:
👉 “There’s a 1.5% surcharge”

Instead:
👉 One clear price

That simplicity can actually improve trust and conversion, especially in hospitality and retail.

The upside (yes, there is one)

While it might feel like a cost hit initially, there are real benefits:

✅ Lower bank fees (capped at ~0.3%)
✅ Simpler pricing
✅ Better customer experience
✅ More competitive payment systems

And importantly — the RBA estimates these reforms could save billions across the economy over time.

The challenge

Let’s be honest — for many small businesses, especially in hospitality:

• You lose the ability to pass on costs
• Margins may tighten
• Pricing decisions become more critical

Some businesses are already warning they will need to increase prices to absorb the change.

So what should you do now?

If you’re a business owner, start preparing early:

✔ Review your current merchant fees
✔ Talk to your bank or payment provider
✔ Compare alternatives (this will matter more than ever)
✔ Start thinking about your pricing strategy for 2026

Final thoughts

This change is less about removing a surcharge… and more about reshaping how businesses handle payment costs entirely.

The businesses that adapt early — review their costs, tighten pricing and choose the right payment partners — will be the ones that come out ahead.

Because from October 2026, one thing is clear:
👉 The surcharge is gone… but the strategy becomes even more important.