Key Takeaways
- Card surcharges on eftpos, Mastercard, and Visa are banned from 1 October 2026, confirmed by the RBA
- American Express and BNPL are NOT covered by this ban - a separate RBA review will address them in mid-2026
- Merchant card fees (interchange and scheme fees) are NOT banned - they stay
- Average merchant card fees range from 0.5% to 2.5% depending on card type
- Switching to a $0 fee payment rail now protects your margins after the ban
The Reserve Bank of Australia confirmed it: from 1 October 2026, merchants across Australia will no longer be permitted to charge customers a surcharge for paying by card on the eftpos, Mastercard, and Visa networks. The policy has been years in the making, and it is now confirmed. What many business owners have not fully grasped is the distinction between surcharges and merchant fees - and why confusing the two could cost you significantly.
What Is the Surcharge Ban, Exactly?
A surcharge is the additional amount a business adds to a transaction when a customer pays by card - for example, "1.5% card fee" or "$0.30 payment processing fee." These have been a common way for merchants to recover the cost of accepting card payments without cutting into their listed prices.
The ban prohibits merchants from passing any of these costs to the customer at point of sale. This applies specifically to eftpos, Mastercard, and Visa networks, covering debit, prepaid, and credit card transactions. Businesses that continue to surcharge after October 2026 will face regulatory scrutiny under the Payment Systems (Regulation) Act 1998.
From October 2026, the cost of accepting eftpos, Mastercard, and Visa cards sits entirely with the business.
What Is NOT Covered by This Ban?
Two important exclusions that every merchant should understand.
American Express
The ban does not apply to American Express. Merchants may still surcharge Amex transactions after October 2026. The RBA has flagged Amex as a three-party card network and will address it in a separate public consultation commencing mid-2026.
Buy Now Pay Later (BNPL)
Services like Afterpay and Zip are also excluded from this ban. BNPL providers contractually prohibit merchants from passing their fees to consumers - a rule that already exists and is unchanged by these reforms. The RBA has signalled it will examine BNPL fee arrangements in the same mid-2026 review.
Will Card Fees Also Disappear?
No. This is the single most important misunderstanding merchants have about the ban. When a customer pays by Visa or Mastercard, your bank (the acquiring bank) is charged an interchange fee by the customer's bank (the issuing bank), plus a scheme fee to Visa or Mastercard. These are separate from surcharges - they are wholesale costs imposed on the banking system. The surcharge ban does nothing to remove them.
Key Distinction
The surcharge ban removes your right to charge the customer for card fees. It does not remove the bank's right to charge you. After October 2026, every card transaction costs you the same - you just cannot recover it from the customer.
What Are Australian Merchants Actually Paying?
Card acceptance costs in Australia vary by card type and your payment provider. Here is a realistic breakdown of what merchants typically absorb per transaction:
- eftpos debit: approximately 0.4 to 0.6% per transaction
- Visa and Mastercard debit: approximately 0.8 to 1.0% per transaction
- Visa and Mastercard credit: approximately 1.1 to 1.8% per transaction
- American Express: up to 2.5% per transaction (note: Amex surcharging remains permitted post-ban)
- BNPL schemes: 3 to 6% per transaction (note: BNPL is excluded from the October 2026 ban)
- Terminal rental: $30 to $100 per month
- Monthly platform or account fees: $10 to $50 per month
Card fee components stack: interchange fees, scheme fees, and merchant service charges all contribute to the total cost per transaction. Small businesses typically pay closer to the cap than large merchants - meaning the fee burden is proportionally heavier before any relief from the RBA's interchange reductions takes effect.
How QwikPay Solves This
QwikPay is built on PayTo and PayID, Australia's direct bank-to-bank payment infrastructure. Because QwikPay bypasses card networks entirely, there are no interchange fees, no scheme fees, and no terminal rental. The cost to accept a QwikPay payment is $0 per transaction.
Free for 12 Months
Merchants who register with QwikPay before the October 2026 ban go free for the first 6 months — or 12 months if you sign up before 30 August 2026. No lock-in contracts. Setup takes under 5 minutes. Your existing payment terminal stays exactly where it is - QwikPay is displayed as an additional option at the counter.
What Should Merchants Do Right Now?
- 1Request a fee statement from your current payment provider - understand exactly what you are paying today
- 2Model your post-ban margin impact: multiply your annual card turnover by your average rate
- 3Review your pricing to assess whether you can absorb fees or need to adjust list prices
- 4Explore $0 fee alternatives like QwikPay that operate outside the card network entirely
- 5Clarify your Amex and BNPL position separately - those fees and surcharge rules are governed by different rules and a separate upcoming review
- 6Register early - early adopters lock in favourable terms before demand spikes post-ban
“The merchants who act before October 2026 will absorb the change. Those who wait will absorb the cost.”
— QwikPay Editorial
The Bottom Line
October 2026 is a structural change to how payment economics work in Australian retail. After that date, card fees on eftpos, Mastercard, and Visa become invisible to customers and fully visible on your P&L. American Express and BNPL remain under their existing rules for now, with a further RBA review expected to report in late 2026.
The businesses that position themselves now - by diversifying away from card networks, adjusting pricing, and communicating payment options clearly - will navigate the transition far better than those who wait.