RBA Card Surcharge Ban: What It Means for Your Business

Australian businesses should prepare for major changes to payment processing, following new reforms announced by the Reserve Bank of Australia.

From October 2026, surcharges on debit and credit card payments will be banned, impacting how businesses recover transaction costs and price their goods and services.

What’s Changing?

The reforms will apply to all major payment networks, including:

• eftpos

• Mastercard

• Visa

Key changes include:

• Removal of card surcharges on debit, prepaid, and credit transactions

• Lower caps on interchange fees (fees businesses pay to banks)

• Increased transparency, with providers required to publish fee structures

When Do Changes Take Effect?

• Start date: October 1, 2026

• Some additional reforms rolling into 2027

What This Means for Employers & Business Owners

1. Surcharging Will No Longer Be an Option

Businesses that currently pass on payment fees to customers will need to absorb these costs or adjust pricing strategies.

2. Margin Pressure—Especially for Small Business

For industries with tight margins (e.g., hospitality, retail), payment fees can represent a significant cost. Without surcharges, businesses may:

• Increase product/service prices

• Reduce operational costs elsewhere

• Reassess payment providers

3. Pricing Strategy Will Be Critical

With “all-inclusive” pricing becoming the norm:

• Menu/list prices must reflect total costs

• Transparency becomes a competitive advantage

• Businesses must balance price increases with customer retention risk

4. Opportunity to Review Payment Providers

Greater fee transparency means businesses can:

• Compare providers more easily

• Negotiate better rates

• Potentially reduce transaction costs

5. Compliance & System Updates

Employers should ensure:

• POS systems remove surcharge functionality

• Pricing and receipts reflect compliant structures

• Staff are trained on new pricing communication

Will Businesses Actually Save Money?

While the reforms aim to reduce costs, the reality is mixed:

• Lower interchange fees may reduce overall expenses

• However, removing surcharges may shift costs back onto businesses

Many businesses are expected to embed these costs into their pricing, meaning consumers may still indirectly pay.

Key Takeaways

• Card surcharges banned from October 2026

• Businesses must adjust pricing strategies

• Lower fees + more transparency expected

• Small businesses may feel margin pressure most

These reforms are designed to simplify payments and improve transparency but they also require businesses to rethink how they manage transaction costs and profitability.

Addition Accounting can help you review your pricing, reduce transaction costs, and ensure your business stays compliant and profitable.