Australia’s card-surcharge ban takes effect on 1 October

Sourced news briefing

The Reserve Bank of Australia concluded in its retail payments review that surcharging should be removed for payments over the designated eftpos, Mastercard and Visa networks from 1 October 2026. The RBA’s official frequently asked questions explain that merchants may no longer add a surcharge for those card payments and that related interchange and transparency reforms also form part of the review. The decision was announced on 31 March 2026, while its implementation date makes it immediately relevant to merchants now.

The official material says merchants can still offer discounts for particular payment methods, subject to applicable law, while the displayed price must not be increased through a prohibited card surcharge. The sourced development is specific to Australia and the designated networks covered by the RBA framework. The independent analysis below focuses on merchant implementation. It does not assume identical treatment for every payment product, overseas sale or fee described by a provider.

Independent analysis: pricing must move from checkout surprise to planned policy

A merchant that previously recovered card costs through a separate surcharge needs a deliberate replacement policy. The business may absorb the cost, revise base prices, change discounts or review its provider arrangement. Each choice affects customers differently. The first task is to identify current payment costs using actual statements rather than applying a familiar percentage to every transaction.

A base-price change spreads cost across purchases, including those made with methods that may cost less. That can be commercially reasonable, but it should be a conscious pricing decision. Merchants should consider margins, average transaction value, customer expectations and competitors. They should avoid disguising a prohibited surcharge under a new label that still applies only because a customer uses a covered card.

Discounts can steer customers toward preferred methods when communicated clearly and lawfully. The shelf, menu, invoice and checkout should show how the final price is calculated before commitment. Staff should not negotiate an improvised payment fee at the counter. Consistency protects customer trust and makes reconciliation easier.

Independent analysis: map which payments are actually covered

Merchants should obtain current guidance from their acquirer or payment provider about the transactions in scope. A business may accept designated network cards, other card schemes, wallets, account-to-account payments and cash. The RBA decision should not be converted into a vague statement that every possible payment-related fee is banned. The legal and contractual treatment depends on the instrument and arrangement.

Digital wallets can carry an underlying card. The customer may select a wallet brand while the merchant receives a transaction on a designated network. Systems and staff should identify the actual acceptance route rather than deciding from the logo shown on the customer’s device. Provider reporting can help the business apply the correct policy.

Online merchants serving Australia should review whether their checkout adds card fees through custom code, a plugin, a payment gateway setting or a third-party platform. Removing a visible field may not be enough if pricing logic still changes after the customer selects a covered card. Test the production journey with representative devices and payment types.

Independent analysis: provider statements become a management tool

The reform increases the importance of transparent merchant-service cost information. Merchants should read statements for transaction charges, fixed fees, equipment, gateway services and other components. These amounts may not all be interchange. A provider should be able to explain the categories and how a pricing proposal would change under the new framework.

Comparison should use the business’s transaction mix. A blended rate may be easy to understand, while an interchange-plus arrangement may expose more detail. Neither label is automatically better. The merchant should model its real domestic, foreign, debit, credit, online and in-person volumes, then include fixed costs and refunds.

A change in regulation is a sensible time to request clearer reporting, but merchants should not assume renegotiation guarantees savings. Contract terms, minimum periods and equipment commitments may apply. Decisions should use written proposals and total expected cost. If an intermediary offers a dramatic reduction, verify the responsible provider and avoid misclassification.

Independent analysis: checkout and staff changes need verification

Merchants should inspect every place a surcharge can appear: point-of-sale devices, printed invoices, online carts, payment links, booking systems and staff scripts. The change should be tested before the implementation date and checked again afterward. Screenshots or sample receipts can document the result.

Customer-facing language should be simple. If prices change, explain the new price without suggesting the customer is still paying a separate covered card fee. If a lawful discount is offered for another method, show the conditions before payment. Complaints should reach a manager who understands the policy rather than being answered with guesswork.

Finance teams should update accounting treatment. Removing a surcharge line may alter tax, revenue and reconciliation entries. E-commerce exports and point-of-sale reports should be reviewed so old fields do not continue to post amounts. The business should consult its accountant or adviser where needed.

Independent analysis: monitor behaviour after implementation

The first weeks can reveal whether customers change payment choices, whether staff apply discounts consistently and whether margins move as expected. Merchants should compare payment mix, average order value, abandonment and complaints with an appropriate baseline. A single busy day may not show the lasting effect.

Businesses should also watch for unexpected terminal or software behaviour. A provider may update settings centrally, while custom integrations may require merchant action. If a surcharge continues to appear, pause the affected configuration and contact the responsible provider. Do not assume the customer will overlook a small amount.

Competitors may respond through advertised no-surcharge pricing, discounts or general price changes. Merchants should focus on transparent value instead of copying a headline. The strongest approach explains the final payable price and supports reliable choices. Regulatory compliance and customer communication should reinforce each other.

Marketplace and platform merchants should establish whether the platform or individual seller controls checkout pricing and who is responsible for removing any covered fee.

Invoices created before the effective date but paid afterward may need specific handling, so businesses should confirm the applicable treatment rather than guessing.

Refund procedures should identify whether any historical surcharge component is returned for transactions made before the change.

Where a payment service bundles software and acceptance, the merchant should distinguish a genuine platform charge from a fee triggered by using a covered card.

Franchise groups should coordinate changes while preserving evidence that each legal merchant reviewed its own provider statements and configuration.

A staff briefing should include examples of permitted displayed prices, prohibited card additions and any approved discount wording.

Merchants should retain provider notices and test results so later complaints can be investigated against the configuration in force on the transaction date.

Implementation is complete only when the customer journey, merchant records and staff explanation all reflect the same transparent price.

Record scope, pricing, configuration, notices, testing, complaints, evidence and ownership.