No More Card Surcharges From 1 October: What Australian Business Owners Need to Know

Some big news this week.

Since October 1, Australian consumers are no longer allowed to be hit with credit card surcharges. For years, a little extra turned up on the bill the moment you paid for a client's lunch, or maybe you grabbed a round of coffees on the company card, but that had changed as of this week.

The Reserve Bank of Australia (RBA) has removed the right for businesses to add a card surcharge on EFTPOS, Mastercard and Visa debit, prepaid and credit card payments. American Express said it would follow suit.

If you run a business, you’re probably wondering if the card surcharge ban is good news or bad news. And honestly? It’s a bit of both. The ban changes how you get paid and what your card earns.

Key Takeaways

• From 1 October 2026, businesses can no longer add card surcharges on EFTPOS, Mastercard or Visa payments. Amex has confirmed it will follow.
• Interchange caps have also dropped, most notably on consumer credit cards, down from 0.80% to 0.30%.
• Commercial credit cards keep their 0.80% cap, so most business cards are largely unaffected by interchange caps.
• Check your pricing, systems and provider rates now that surcharge revenue is gone.

What does the card surcharge ban cover?

The idea behind the card surcharge ban is that a customer shouldn't pay more simply because they used a card. And not every extra charge will disappear, just the ones tied to card surcharges.

The Australian Competition and Consumer Commission (ACCC) still oversees surcharging conduct for any surcharges that remain permitted.

Which cards and networks are covered?

The ban applies to surcharges on debit, prepaid and credit cards across the EFTPOS, Mastercard and Visa networks.

American Express, UnionPay and PayPal also confirmed they’d end surcharging too, even though they’re not formally regulated by the RBA.

What is still allowed?

Weekend, public holiday, booking and service fees are still allowed, and so are discounts for a preferred payment method.

What this means for B2B payments and existing invoices

Card payments between businesses aren't automatically exempt either, unless a network's rules or the law provide one.

And timing matters too. A surcharge may not be available for a payment made on or after 1 October… even if the invoice was issued earlier.

Why the RBA is removing surcharges

Card surcharging was introduced in 2003 to give customers a clear signal about the real cost of different ways to pay. Fast forward more than two decades, and the way Australians pay has changed completely.

And the RBA has now decided card surcharges aren’t achieving what it originally set out to do.

Surcharges lost their purpose

Instead, surcharges have become widespread, inconsistent, and often way higher than what it actually costs a business to process the payment. In fact, consumers pay $1.6 billion (RBA, 2026) of the total $1.8 billion collected in card surcharges each year.

It's a trade-off, not just a ban

Rather than simply scrapping surcharges, the RBA is balancing things out as set out in its full Conclusions Paper.

Yes, card surcharges are going, but so is a chunk of the underlying cost of accepting cards through cuts to interchange fees.

What are the new interchange fee caps?

Every time a customer taps their card, your payment provider pays the card issuer an interchange fee. This cost flows into what you're charged.

And from 1 October 2026, those fees also change:

• Consumer credit: 0.30% (down from 0.80%)
• Debit and prepaid: 8 cents or 0.16% of transaction value
• Commercial credit: 0.80% (unchanged)
• Foreign-issued (from 1 April 2027): 1.0%

The transparency dates worth knowing

There's also a transparency requirement attached to all of this. Note these down to check whether your provider is actually passing on the lower caps.

• 30 October 2026: card networks and large acquirers begin publishing fee data (covering Jul–Sep 2026)
• 30 January 2027: large acquirers publish interchange pass-through data (covering Oct–Dec 2026)
• 1 April 2027: foreign-issued card cap starts, and acquirers must give more detailed merchant statements.

If a lot of your customers pay with cards issued overseas, this date is worth marking separately.

What does the surcharge ban mean for businesses that take card payments?

The cost of accepting cards doesn’t just disappear. Instead, it may need to be absorbed into your pricing and margins.

Not every business will feel the same relief

The RBA lowered interchange caps to offset lost surcharge revenue, but that saving only reaches you if your provider passes it on. Small businesses on blended or flat-rate plans may see little real change.

Preferred payment discounts are still fair game

A small discount for a preferred payment method, like direct debit, is still allowed.

Amex is on a different timeline

Amex has said it will follow suit, but it's worth confirming. Don’t assume the change already applies to their network.

Does the surcharge ban affect your business card rewards?

Interchange has always funded more than transactions. It also pays for rewards, interest-free periods and complimentary insurance. Here are some things to consider regarding rewards:

Consumer cards are taking the hit

Issuer interchange revenue is expected to fall by around $660 million a year, mostly from consumer credit cards. According to Finder, several major issuers have already cut points.

Commercial cards are largely protected

The commercial credit card cap stays at 0.80%, unchanged. The RBA expects commercial issuers to be largely unaffected, and kept the higher cap partly so smaller issuers (including fintechs!) can keep their hat in the consumer ring.

Look out for business spend on personal cards

If your team pays for business expenses on their personal card, that spend is exposed to the consumer-side cut. Take this as your sign to review it this week.

What to do now: Your post-1 October checklist

Understanding the change is step one. But actually adjusting the way you do business is the next one. Here's where to start.

• Turn off card charges on your terminals and online checkout.
• Ask your payment provider whether your rate reflects the new interchange caps.
• Review your pricing and margins now that surcharge revenue is gone.
• Check your first post-October merchant statement for changes.
• Review your business card's earn rate. Confirm it rewards every dollar of spend, not just bonus categories and check complimentary insurances are still current.

Where Archa fits

This is a good moment to look beyond the cards. Instead, it’s time for finance teams to look inward and see how spend is actually managed day to day.

Archa's business credit card runs on Mastercard, on the commercial side of these changes, where the 0.80% interchange cap hasn't moved. Plus, it earns uncapped Archa Points to be transferred to our reward partners including PayRewards.

Spend controls are set per card, such as limits and single-use cards, so you can issue cards to a growing team without losing control of where the money goes.

Request a demo today for more on rewards, integrations and choosing the right business card for your team.

FAQs

When does the card surcharge ban start in Australia?

Card surcharges were removed from 1 October 2026 on EFTPOS, Mastercard and Visa transactions. American Express confirmed it would follow the same timeline.

Can businesses still add a surcharge for Amex?

Amex has said it will end surcharging in line with the other networks, but it’s best to check the current position with your payment provider.

This article is general information only and does not constitute financial advice. Applications for credit are subject to Archa's credit approval criteria. Terms, conditions, fees and charges apply.

Sources

• RBA FAQs, Removal of Card Payment Surcharges From 1 October 2026
• RBA Conclusions Paper, Impact and Implementation
• ACCC, Card surcharges
• Finder, credit card rewards changes tracker

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