Card Payment Surcharges to End from 1 October 2026
From 1 October 2026, businesses will no longer be able to charge customers a separate surcharge for paying by cards such as eftpos, Mastercard, American Express or Visa, following changes announced by the Reserve Bank of Australia (RBA).
What is changing?
The changes only apply to surcharges added because a customer chooses to pay by card. They do not apply to other charges such as weekend or public holiday surcharges, booking fees or service fees.
What happens to card processing costs?
Businesses will still incur merchant and payment processing fees when accepting card payments. However, rather than passing these costs directly to customers through a separate card surcharge – the business will wear the cost themselves. Therefore, businesses may need to factor these costs into their overall pricing. Note that there are various rules to consider – i.e. you are unable to on charge as an admin fee to only people who pay using card.
What does this mean for your business?
If your business currently applies card surcharges, it is important to review your payment and pricing arrangements before 1 October 2026.
Businesses should consider:
- Reviewing current merchant fees – understand what you are currently paying to accept different types of card transactions.
- Comparing payment providers – consider whether your existing payment plan remains competitive and whether alternative providers could reduce your transaction costs.
- Reviewing your pricing – determine whether card processing costs need to be factored into the prices you charge for your goods or services.
- Updating systems and customer communications – review websites, invoices, signage and other material that currently refers to card surcharges.
- Speaking with your payment provider – confirm how and when surcharge functionality will be changed or disabled.
- Considering payment discounts – businesses can continue to offer customers discounts for using preferred or lower-cost payment methods (cash or bank transfer).
Penalties may apply to businesses found attempting to disguise the surcharge as another fee or mislead customers about pricing.
Businesses that issue invoices should also be aware of the timing of the change. If an invoice is issued before 1 October 2026 but the customer makes a card payment on or after that date, the ability to apply a card surcharge may no longer be available.
If you would like assistance reviewing the potential impact of these changes on your business or pricing arrangements, please reach out to the team at HQB.
– James Davis
9 September 2026
This article is compiled as a helpful guide for your private information and is subject to copyright. We suggest that you do not act solely on the basis of material contained in this article because items are of general nature only and may be liable to misinterpretation in particular circumstances. We recommend that our advice be sought before acting on any of these crucial areas.
