From 1 October 2026, Australian businesses will generally no longer be able to add card surcharges to eftpos, Mastercard, Visa or American Express payments.
However, the change is not as simple as saying that the RBA has banned card surcharges.
The Reserve Bank of Australia has changed its regulatory standards to allow designated card networks to introduce no-surcharge rules. eftpos, Mastercard and Visa have each decided to introduce those rules from 1 October 2026. American Express has also independently announced that it will remove surcharging from the same date.
For merchants, the practical outcome is straightforward: card-processing costs will remain, but separately passing those costs to customers through a card surcharge will generally no longer be available.
Here is what is changing, what is not changing and what your business can do before October.
Key takeaways
- The RBA is enabling card networks to introduce no-surcharge rules. It is not directly banning individual merchants from surcharging.
- eftpos, Mastercard and Visa will introduce no-surcharge rules from 1 October 2026.
- American Express has also decided to remove surcharging from 1 October 2026.
- The changes cover credit, debit and prepaid card payments on the relevant networks.
- Merchant card-processing fees will continue, although separate RBA reforms are intended to reduce some card costs.
- Weekend, public holiday, booking and general service fees are not automatically prohibited by these card-surcharge changes.
- BNPL and other non-card payment methods are not covered by these particular card-network rules.
- Merchants should review their payment costs, pricing and alternative payment methods before October.
Is the RBA banning card surcharges?
Not directly.
Until now, the RBA's standards prevented designated card networks from imposing rules that completely prohibited merchants from surcharging.
The RBA has decided to remove that prohibition from 1 October 2026. This allows eftpos, Mastercard and Visa to introduce no-surcharge rules through their card-network rules and merchant agreements.
Each of those networks has decided to do so from 1 October 2026. American Express, which is not formally regulated by the RBA as a designated network, has independently decided to remove surcharging from the same date.
The practical outcome for most businesses is that card surcharges will disappear. However, it is important to understand the mechanism.
The RBA changed the regulatory framework. The card networks are introducing the no-surcharge rules.
The RBA does not directly regulate individual merchants. According to the ACCC, the relevant card networks and payment service providers will be responsible for implementing and enforcing the new requirements.
Which payment methods are covered?
| Payment method | Position from 1 October 2026 |
|---|---|
| eftpos debit and prepaid | No surcharging under the network's announced rules |
| Visa debit, prepaid and credit | No surcharging under Visa's announced rules |
| Mastercard debit, prepaid and credit | No surcharging under Mastercard's announced rules |
| American Express credit | American Express has independently decided to remove surcharging |
| Buy Now Pay Later | Not covered by these card-network surcharge changes |
| Account-to-account payments | Not covered by these card-network surcharge changes |
| Cash | Not covered |
| Weekend and public holiday surcharges | Not automatically affected |
| Booking and general service fees | Not automatically affected, but normal pricing and disclosure laws still apply |
The precise application of network rules, including any exemptions, is ultimately determined by the relevant network. Businesses should confirm their obligations with their payment provider before 1 October 2026.
What is not covered?
The changes apply specifically to fees added because a customer chooses to pay using a covered card.
They do not automatically prevent a business from applying:
- a weekend surcharge
- a public holiday surcharge
- a booking fee
- a general service fee
- delivery or administrative charges, or
- fees associated with non-card payment methods
However, businesses must still comply with Australian Consumer Law, including requirements concerning transparent pricing, drip pricing and misleading representations.
Businesses should not assume that a card surcharge can simply be renamed as a service fee. The substance, presentation and disclosure of the fee still matter.
Will merchant card fees disappear?
No.
The removal of card surcharges does not eliminate the costs businesses pay to accept cards.
Your payment provider may continue to charge for:
- processing card transactions
- interchange and scheme costs
- payment gateways
- terminal rental
- account or platform access, and
- other payment-related services
The RBA is also reducing interchange-fee caps and introducing measures intended to improve payment-cost transparency. The RBA expects these changes to lower card-acceptance costs, with smaller businesses expected to benefit most because they tend to pay fees closer to existing caps.
Most domestic interchange changes are scheduled to commence on 1 October 2026. Some reforms concerning foreign cards and payment-cost transparency will commence on 1 April 2027.
Merchant card costs are not disappearing. Some wholesale costs are expected to fall, but merchants should check whether and how those reductions are passed through by their payment provider.
What is your business actually paying?
The cost of accepting payments varies according to your provider, pricing plan, turnover, card mix and whether transactions occur in person or online.
Instead of relying on an industry average, review your latest merchant statement and identify:
- your total card turnover
- your total payment fees
- your effective card-acceptance rate
- terminal and account fees
- whether you use flat-rate, blended or interchange-plus pricing, and
- whether your provider will pass on the October interchange reductions
Display this calculation clearly:
Effective payment cost = total card-related fees ÷ total card turnover × 100
Illustrative example
A business with $500,000 in annual turnover, 80% paid by card and an effective card-acceptance cost of 1.5% would incur:
$500,000 × 80% × 1.5% = $6,000 per year
This does not mean the rule change will create a new $6,000 expense. The business may already be absorbing some or all of that cost. The relevant question is how much it currently recovers through surcharges and how its card fees change after October.
After October, the business's actual cost may change. Merchants should ask their payment providers for updated pricing before making long-term pricing decisions.
How QwikPay can help
QwikPay gives merchants an account-to-account payment option that works alongside their existing EFTPOS terminal.
Customers can pay through QwikPay using QR payments or available in-app payment experiences. Because the merchant payment does not travel over a card network, the merchant does not incur card interchange or card-scheme fees on that QwikPay transaction.
QwikPay currently charges merchants $0 per payment transaction, subject to QwikPay's applicable pricing and service terms.
Merchants do not need to remove their existing card terminal. QwikPay can be offered as an additional payment method, giving customers more choice while helping businesses reduce their dependence on percentage-based card-processing fees.
Beyond payments, QwikPay is building a merchant-consumer network around:
- business discovery
- in-app payments
- offers and rewards
- repeat visits, and
- stronger direct relationships between merchants and customers
Payments drive adoption. The network creates long-term value.
What should merchants do before October?
1. Review your merchant statement
Identify your total payment fees, effective acceptance rate, terminal costs and current surcharge recovery.
2. Contact your payment provider
Ask how its pricing and surcharge functionality will change from 1 October 2026. Some providers may automatically disable card-surcharge functionality.
3. Model the effect on your margins
Calculate how much surcharge revenue your business currently collects and compare it with your expected payment costs after October.
4. Review your advertised prices
If card costs need to be reflected in your general pricing, plan the change carefully and ensure customers see the full price upfront.
5. Compare providers and pricing structures
Review flat-rate, blended and interchange-plus options. Ask whether your provider will pass the lower interchange caps through to your business.
6. Consider lower-cost payment alternatives
Account-to-account payments can give customers another way to pay without using card networks. Businesses may also offer genuine discounts for preferred payment methods, subject to applicable pricing laws.
7. Update customer and staff communications
Remove outdated signage, payment-screen messages and website references to card surcharges before the new rules take effect.
8. Check invoices issued before October
If an invoice is issued before 1 October but paid by card after that date, surcharging may no longer be available. Confirm the position with your payment provider.
The earlier businesses understand their payment costs, the more options they will have before October.
The bottom line
From 1 October 2026, eftpos, Mastercard and Visa will introduce no-surcharge rules following changes made by the RBA. American Express has also decided to remove surcharging from the same date.
The important distinction is that card-processing costs are not disappearing. Merchants will still pay to accept cards, although new interchange caps and transparency reforms are intended to reduce some of those costs.
Businesses should now understand what they are paying, ask providers how pricing will change, review their overall prices and consider additional payment methods that do not rely on percentage-based card fees.
QwikPay can work alongside a merchant's existing EFTPOS setup, providing an account-to-account payment option with $0 merchant transaction fees under QwikPay's current pricing.
Prepare your business before 1 October 2026
Give customers an account-to-account payment option that works alongside your existing EFTPOS terminal. Join QwikPay before 1 October 2026 and receive 12 months of merchant access free. No lock-in contract. Eligibility, onboarding requirements and QwikPay terms apply.
This article provides general information only and does not constitute legal, financial or professional advice. Card-network rules, provider pricing and implementation arrangements may change. Businesses should confirm their obligations with their payment provider and seek professional advice where appropriate. Information current as at 4 August 2026.