Card Surcharges Are Ending From 1 October 2026: What Businesses Need to Know
If your business currently adds a surcharge when customers pay by card, there is an important change coming.
From 1 October 2026, card surcharges will be removed for payments made through eftpos, Mastercard and Visa. American Express has also announced it will remove surcharging from the same date.
The change follows the Reserve Bank of Australia’s Review of Merchant Card Payment Costs and Surcharging and forms part of a broader package of reforms designed to make card payments simpler, more transparent and less costly.
For businesses that currently pass merchant fees directly on to customers, now is the time to review your payment costs, pricing and payment processes.
Card surcharge changes at a glance
| Area | Current position | From 1 October 2026 |
|---|---|---|
| eftpos surcharges | Businesses can apply a surcharge, subject to existing rules | Surcharging will no longer be permitted |
| Mastercard surcharges | Businesses can apply a surcharge, subject to existing rules | Surcharging will no longer be permitted |
| Visa surcharges | Businesses can apply a surcharge, subject to existing rules | Surcharging will no longer be permitted |
| American Express surcharges | Surcharging currently permitted | American Express has announced surcharging will end |
| Merchant processing fees | Businesses pay fees to accept card payments | Businesses will still pay merchant and processing fees |
| Domestic consumer credit card interchange | Existing caps apply | Cap reduces to 0.3% of transaction value |
| Domestic debit and prepaid interchange | Existing caps apply | New caps of 8 cents per transaction or 0.16% of transaction value |
| Payment fee transparency | Merchant fee information can be difficult to compare | Greater fee transparency will be introduced |
| Payment method discounts | Businesses can offer discounts | Businesses can continue to offer discounts |
Why are card surcharges being removed?
The Reserve Bank of Australia has concluded that the current card surcharge system is no longer working as intended.
Card payments now account for around three-quarters of transactions in Australia, while the use of cash has continued to decline.
At the same time, surcharges have become increasingly difficult for consumers to avoid, particularly where businesses apply the same surcharge regardless of the card being used.
The RBA also found that consumers and businesses often find the existing surcharging rules complicated and confusing.
From 1 October 2026, surcharging will end for payments made using:
eftpos debit and prepaid cards
Mastercard credit, debit and prepaid cards
Visa credit, debit and prepaid cards.
American Express has also announced it will remove surcharging from the same date.
The RBA says around 16% of Australian businesses currently surcharge, meaning most businesses already incorporate payment processing costs into their normal pricing.
What counts as a card surcharge?
A card surcharge is an additional fee charged specifically because a customer pays using a card.
The new rules relate specifically to payment surcharges.
They do not apply to other types of charges such as:
weekend surcharges
public holiday surcharges
booking fees
service fees.
Businesses will still need to ensure any additional fees are properly disclosed and comply with applicable consumer law requirements.
Will businesses still pay merchant fees?
Yes.
The removal of card surcharges does not mean the cost of accepting card payments disappears.
Businesses may still pay costs such as:
merchant service fees
transaction fees
percentage-based processing fees
EFTPOS terminal fees
online payment gateway charges
other payment provider fees.
The key difference is that businesses may no longer be able to pass those costs on as a separate card surcharge.
Merchant fees are also changing
Importantly, the surcharge changes are only one part of the RBA’s reforms.
From 1 October 2026, the RBA is also reducing the maximum interchange fees that can apply to domestic card transactions.
For domestic consumer credit cards, the interchange cap will reduce to 0.3% of the transaction value.
For domestic debit and prepaid card transactions, the new caps will be 8 cents per transaction or 0.16% of the transaction value, depending on the fee structure.
These changes are intended to reduce the underlying cost businesses pay to accept card payments.
Small businesses are expected to benefit particularly from these reductions because they are more likely to currently pay fees closer to existing interchange caps.
However, that does not necessarily mean every business will automatically see the same reduction in its merchant fees.
It will still be important to understand what your payment provider charges and whether lower wholesale costs are being passed through.
What should businesses do before 1 October 2026?
If your business currently charges customers a card surcharge, there are several areas worth reviewing now.
| What to review | Why it matters |
|---|---|
| Merchant statements | Understand what card processing is actually costing the business |
| Current surcharge income | Identify how much cost is currently being recovered from customers |
| Payment provider | Check whether fees will change and whether a better plan is available |
| Pricing | Determine whether payment costs need to be reflected in advertised prices |
| EFTPOS terminals | Confirm when surcharge functionality will be removed |
| Online payment gateways | Check whether surcharge settings need to be updated |
| Xero and accounting integrations | Make sure connected payment services are ready for the change |
| Invoice templates | Remove outdated surcharge wording where required |
| Outstanding invoices | Check how payments made after 1 October will be handled |
| Customer communications | Explain any pricing or payment changes clearly |
Speak with your payment provider
Before October, ask your provider:
when surcharge functionality will be disabled
how your merchant fees will change
whether interchange reductions will flow through to your pricing
whether you are on the most suitable payment plan
whether there is a lower-cost option available.
The RBA is encouraging businesses to compare providers and shop around where appropriate.
Review your systems and invoices
Card surcharges can appear in more places than just an EFTPOS terminal.
Check your:
payment gateways
invoice payment links
Xero integrations
customer portals
recurring payments
invoice templates
online checkout settings.
If an invoice is issued before 1 October but the customer pays by card after that date, a surcharge may no longer be available.
Businesses should therefore review outstanding invoices as well as future templates.
How Beam can help
The removal of card surcharges is a good opportunity to take a closer look at what payment processing is actually costing your business.
At Beam Bookkeeping, we can help you understand how merchant fees are being recorded, review the impact of those costs on your margins and make sure your invoicing and bookkeeping processes are ready for the change.
If your business currently applies card surcharges, now is the time to review your setup rather than waiting until October.
Speak with the Beam team if you need help understanding how the changes may affect your bookkeeping, payment processes or business pricing.