Is the RBA Really Banning Card Surcharges in Australia?

You've probably heard: "The RBA is banning card surcharges." But the reality is more nuanced than the headline. The RBA isn't directly banning anything. Instead, it's changing the regulatory framework in a way that enables card networks to introduce their own no-surcharge rules.

If you're a merchant trying to understand what happens after 1 October 2026, or a business owner trying to prepare, the distinction matters. This article explains what the RBA has actually done, what card networks are doing about it, and what you need to know to prepare your business.

Is the RBA actually banning card surcharges?

What has the Reserve Bank of Australia actually changed?

The Reserve Bank of Australia conducted a Review of Merchant Card Payment Costs and Surcharging. The Payments System Board decided to remove an existing regulatory rule that had prevented designated card networks (Visa, Mastercard and eftpos) from establishing their own no-surcharge rules.

Before this decision, RBA regulation explicitly prevented these networks from imposing no-surcharge rules on merchants. Effective 1 October 2026, that regulatory prohibition is being removed. The networks can now decide their own policies.

Here is what happens next:

• The RBA removes the prohibition. Networks become free to set their own rules.
• Visa, Mastercard and eftpos have each independently decided to introduce no-surcharge rules from 1 October 2026.
• American Express has separately decided to remove surcharging from the same date.
• These network rules become effective 1 October 2026.
• Enforcement happens through merchant agreements and network rules, not through new statutory offences.

What happens from 1 October 2026?

The changes apply specifically to surcharges imposed because a customer pays by card. They do not automatically prohibit weekend surcharges, public holiday surcharges, booking fees or other legitimate service fees. Those charges must still comply with applicable consumer laws and pricing-display requirements.

What is the difference between an RBA decision and a card-network rule?

The distinction matters for understanding how the change actually works.

• RBA: Sets the regulatory framework that governs how payment systems operate in Australia.
• Card networks (Visa, Mastercard, eftpos, Amex): Set their own merchant and acquiring rules within that RBA framework.
• Merchants: Must comply with applicable card network rules through their payment provider agreement.

Before the RBA's decision, the regulatory framework explicitly prohibited these networks from having no-surcharge rules. The RBA removed that prohibition. Now the networks can, and have chosen to, establish their own no-surcharge rules.

This is different from the RBA saying: "Surcharging is banned from 1 October 2026." Instead, the RBA has changed the framework, and within that new framework, the card networks have chosen to impose no-surcharge policies.

What about American Express?

American Express is not regulated in exactly the same way as Visa, Mastercard and eftpos under the Reserve Bank Act. However, Amex has separately announced that it will remove surcharging from 1 October 2026.

Practically speaking, merchants should treat American Express the same way as other networks from that date: surcharging will not be permitted under Amex's terms. Even though the regulatory mechanism differs, the outcome is the same.

Is the ACCC enforcing the new card surcharge restrictions?

The ACCC's role here is important to clarify, because it is often misunderstood.

The ACCC currently has consumer protection guidelines on excessive surcharging. These rules apply now and will continue to apply. However, the new restriction from 1 October 2026 is not an ACCC rule. It is a card network rule (and in the case of Amex, an Amex-announced policy).

The practical enforcement happens through:

• Card network enforcement: Visa, Mastercard, eftpos and American Express enforce their no-surcharge rules through merchant agreements and payment provider contracts.
• Payment provider enforcement: Your payment provider (acquiring bank, payment processor) enforces the network rules in their merchant agreements.
• ACCC monitoring: The ACCC monitors the market for compliance with its broader consumer protection and competition principles.

The no-surcharge rules will primarily be enforced by card networks and payment service providers, rather than the ACCC. However, businesses must still comply with the Australian Consumer Law, including requirements concerning transparent and non-misleading pricing.

Does this mean card surcharging is illegal after 1 October 2026?

This question deserves a careful answer, because the distinction between "illegal" and "prohibited by network rules" is important.

Calling card surcharging "illegal" after 1 October 2026 is an oversimplification. It is more accurate to say:

• Card surcharging will be prohibited by Visa, Mastercard, eftpos and American Express network rules.
• Merchants who surcharge in violation of these network rules will be in breach of their payment agreements.
• Enforcement is through merchant agreements and network processes, not through new criminal or ACCC offences.
• If existing ACCC excessive-surcharge rules apply (such as where a surcharge far exceeds the actual cost), those rules remain in place.

To be precise: surcharging will not be "illegal" in the sense of a new law or statutory offence. It will be prohibited under network rules, which merchants must comply with as part of their payment processing agreements.

What happens to card processing fees when surcharges disappear?

This is the most important question for merchants. A common misunderstanding is: "If surcharges disappear, do I stop paying card fees?"

The answer is no. Removing a surcharge does not remove the merchant's underlying card processing costs.

A merchant may still pay:

• Interchange fees: The cost charged by the customer's issuing bank.
• Scheme/network fees: Fees charged by Visa, Mastercard, eftpos or Amex.
• Processor margin: The acquiring bank or payment provider's profit.
• Terminal or platform fees: Rental or transaction fees depending on setup.

Before 1 October 2026, a merchant could recover some or all of those costs by adding a separate surcharge to the customer's bill. After 1 October 2026, that surcharge cannot be applied under the new network rules. The underlying costs remain; merchants must manage them differently.

Aren't interchange fees also being reduced?

Yes, but not enough to eliminate card acceptance costs for most businesses.

The RBA has set new interchange caps effective 1 October 2026. These caps reduce the maximum interchange merchants are charged. However, several important points apply:

• Interchange is only part of total card acceptance cost: Merchants also pay scheme fees, processor margins, terminal fees, and other charges.
• Blended pricing may not pass through savings: Merchants using blended pricing may not benefit from interchange reductions, depending on their provider and contract.
• Interchange-plus pricing does pass through: If you are on an IC++ rate, you will automatically benefit from reduced interchange caps (subject to contract terms).
• Your actual total cost depends on your mix of transactions, pricing model, and provider.

For a detailed explanation of how different pricing models work, see our guide to

blended vs interchange-plus pricing. This is critical for understanding how much your card costs will actually change after October 2026.

How much could card processing fees cost a business?

Card processing costs vary enormously depending on business type, transaction mix, volume, and pricing arrangement. Here is an illustrative example (not market research):

Scenario: A cafe processing $50,000 in card payments per month.

Currently, some businesses recover part of this cost through surcharging. After 1 October 2026, they cannot. This means the cafe must either: absorb the full cost, increase overall prices, negotiate a lower rate with their provider, or use alternative payment methods.

What can businesses do instead of surcharging?

Businesses have several options when surcharges disappear:

• Absorb card costs as part of business operations (many retailers do this today).
• Adjust overall pricing to account for payment costs (increase menu prices, service fees, or product prices across the board).
• Negotiate with your payment provider (shop around, renegotiate rates, or switch providers before October).
• Introduce alternative payment methods (offer and encourage cash, bank transfers, or account-to-account payments, which have lower costs).

Can businesses increase their prices to cover card fees?

Yes. The RBA's reforms do not prevent merchants from adjusting prices to account for payment acceptance costs. Pricing is a commercial decision.

A business can incorporate card acceptance costs into its overall pricing, provided pricing display and consumer protection laws are followed. This is different from a separate surcharge. It's baked into the advertised price.

For example, a salon might increase its service prices by 1–2% to account for card acceptance costs that were previously recovered through surcharging.

Can businesses offer a discount for cheaper payment methods?

Yes. The RBA's reforms do not prevent merchants from offering discounts for particular payment methods. A merchant can offer:

• A discount for cash payment.
• A discount for bank transfer or PayTo payment.
• A discount for any alternative payment method.

The distinction is: a discount for a cheaper method is allowed, but a surcharge for an expensive method (after 1 October 2026) is not. ACCC guidance and existing law apply. Discounts must be genuine and transparent, not used as a workaround to collect a hidden surcharge.

What about account-to-account payments?

Account-to-account payments move funds directly from a customer's bank account to a business's account, bypassing card networks entirely. In Australia, this includes:

• PayTo: An agreement-based payment system built on the New Payments Platform (NPP).
• Bank transfers: Traditional direct bank-to-bank payments.
• PayID: A receiver-initiated payment system using identifiers like phone number or email.

Account-to-account payments typically have no surcharge and significantly lower processing costs than card payments. For this reason, many Australian businesses are exploring A2A as a supplement to traditional card terminals.

A2A payments work best when merchants offer them as an option alongside existing payment methods. They do not require merchants to abandon EFTPOS or card processing.

Where QwikPay fits

QwikPay is a payment platform built on account-to-account technology (PayTo and PayID). It allows Australian merchants and consumers to transact with $0 merchant transaction fees.

Rather than replacing existing EFTPOS and card terminals, QwikPay sits alongside them. A merchant can display a QwikPay QR code at the counter. Customers open QwikPay, scan the QR code or pay in-app, confirm the amount, and funds settle instantly to the merchant's QwikPay wallet.

For merchants preparing for the October 2026 surcharge changes, introducing an alternative payment method like QwikPay can reduce reliance on card payments and offset the loss of surcharge recovery.

QwikPay Merchant Pricing & Promise

Your QwikPay merchant account will remain free for the next 12 to 16 months. If we introduce a small subscription after that, you will receive at least six months' notice, with no lock-in contract or obligation to continue.

We encourage you to keep QwikPay active alongside your existing EFTPOS and card payment options. You will receive 100% of every payment accepted through QwikPay.

We are building QwikPay as an alternative to traditional card-based payments, helping businesses retain more of each sale. Our promise is simple: there will never be a transaction fee for accepting money through QwikPay. Please let us know if you need any assistance getting started.

What should Australian businesses do before 1 October 2026?

Preparation before October will position your business to weather the surcharge changes. Here is a practical checklist:

1. 1Review your current merchant statements to understand total card processing costs (interchange, scheme fees, processor margins, terminal fees).
2. 2Calculate how much revenue you currently recover through surcharging.
3. 3Identify the gap: what portion of your card processing costs will go uncovered after 1 October?
4. 4Contact your payment provider and ask: What changes on 1 October? Will our rates fall? What is our total effective payment rate?
5. 5Determine your pricing model. Are you on blended pricing or interchange-plus (IC++)? IC++ generally makes interchange reductions more visible (as a separate component), but actual savings depend on provider terms.
6. 6Shop around with other providers. If your rate is uncompetitive, use October as leverage to renegotiate.
7. 7Evaluate alternative payment methods: PayTo, bank transfer, or QwikPay as a supplement to existing terminals.
8. 8Update your POS, invoicing, checkout, and payment processing systems to remove surcharge options.
9. 9Remove surcharge signage. Update your website, emails, and customer-facing materials to reflect new payment terms.
10. 10Train your staff to understand the changes and explain payment options to customers.
11. 11After 1 October, monitor your margins to understand the net impact on profitability.

The real change is not just the surcharge. It's who absorbs the payment cost

The core story of the October 2026 changes is not "surcharges disappear." It's "who pays for card acceptance?"

Before October, the payment cost could be split:

• Merchant covers part (the cost minus surcharge).
• Customer covers part (the surcharge).

From October, customers cannot be charged a separate surcharge. The cost falls entirely on merchants. Or merchants must reduce reliance on cards by offering alternatives.

Before October arrives, understand: How much is accepting cards actually costing my business? Once you know that, you can decide: Do I absorb it, raise prices, negotiate a better rate, or introduce alternatives like account-to-account payments?

Before October 2026, run the numbers on your business. It's the best preparation you can do.