Australia Card Surcharge Changes 2026: What You’ll Pay From October 1
From October 1, most Visa, Mastercard, eftpos and American Express card surcharges disappear in Australia. Here is what the change could save you — and which fees can still remain.
Quick answer: From 1 October 2026, Australian businesses generally will not be able to add a separate surcharge when customers pay with Visa, Mastercard, eftpos or American Express credit, debit or prepaid cards. UnionPay is also removing surcharges from that date, while PayPal’s change begins on 5 October.
For shoppers, the clearest change is simple: the price shown on a menu, shelf or checkout page should usually be the price paid when using one of the covered cards. However, weekend surcharges, public-holiday surcharges, booking fees, delivery fees and other service charges are not part of the card-surcharge change.
The Reserve Bank of Australia estimates consumers have been paying about A$1.6 billion a year in card surcharges. That does not mean every household will receive a fixed saving, because businesses may incorporate payment costs into their advertised prices. The main benefit is that the final price should be clearer before you tap or enter your card details.
What changes on October 1?
The RBA has removed its rule that previously prevented designated card networks from banning surcharges. Visa, Mastercard and eftpos have decided to introduce no-surcharge rules from 1 October 2026. American Express and UnionPay have announced similar changes.
The rules generally cover credit, debit and prepaid card payments, including cards issued overseas. Many payment providers plan to disable the surcharge function on their terminals around the changeover date.
PayPal is slightly different: its no-surcharge rule is due to begin on 5 October 2026. Consumers should also be aware that individual network rules may contain exceptions, and taxi payment fees can remain subject to state or territory regulation.
How much could you save?
*Card payment at a contactless reader. Photo: Nathan Dumlao / Unsplash.*
Your saving depends on the surcharge a business previously charged. The examples below show the extra amount that disappears if the base price stays unchanged.
| Purchase | 1% surcharge | 1.5% surcharge | 2% surcharge | |---:|---:|---:|---:| | A$20 | A$0.20 | A$0.30 | A$0.40 | | A$50 | A$0.50 | A$0.75 | A$1.00 | | A$100 | A$1.00 | A$1.50 | A$2.00 | | A$500 | A$5.00 | A$7.50 | A$10.00 |
A 30-cent fee on a coffee or lunch may not feel large, but repeated payments add up. Someone making five A$20 card purchases a week at a 1.5% surcharge would have paid about A$78 in surcharges over a year. A household making larger purchases could have paid considerably more.
These figures are illustrations, not guaranteed savings. A business can raise its overall prices to recover legitimate costs, but it cannot simply rename a card surcharge as another fee to avoid the new network rules. The ACCC says businesses must not mislead customers about their prices or the reason for an increase.
What fees can still be charged?
The change is limited to extra fees imposed because you chose to pay by card. It does not eliminate every surcharge or checkout fee.
Businesses may still charge:
- weekend or public-holiday surcharges
- booking or service fees
- delivery fees
- fees unrelated to the payment method
- some taxi payment charges regulated by states or territories
For example, a café may still apply a clearly disclosed 10% Sunday surcharge. A ticket platform may still charge a booking fee if it complies with Australian Consumer Law. What it generally cannot do is add another percentage only because you paid with a covered card.
Could shops simply raise their prices?
*Online card payment. Photo: rupixen / Unsplash.*
Yes. Businesses will still pay costs to accept cards, and the RBA says those costs can be reflected in overall prices rather than appearing as a separate surcharge.
The ACCC gives an example of a salon that charges A$60 plus a 1% card surcharge. From October 1, it could replace that with an all-inclusive A$60.60 price. The customer may pay a similar total, but the full cost is visible before payment rather than appearing at the terminal.
The RBA is also lowering interchange-fee caps for domestic card transactions from October 1. For certain small-business credit-card transactions, the maximum falls from 0.80% to 0.30%. The aim is to reduce part of the cost merchants must absorb while making card-payment pricing more transparent.
Will credit-card rewards change?
Possibly. Lower interchange revenue may lead some banks to reduce reward points or benefits, increase annual fees, or change other card terms. Those decisions are made by individual banks and card issuers, not by the RBA.
If you use a rewards card, check emails and notices from your provider rather than assuming the card remains good value. Compare the annual fee and any interest you pay with the realistic dollar value of the points, insurance and other benefits you actually use.
What should consumers do from October 1?
First, check the advertised total before paying. A separate card surcharge should generally disappear for covered cards, but other clearly disclosed fees may remain.
Second, keep a receipt or screenshot if a business adds a card-payment surcharge after the new rules begin. Ask whether the fee is genuinely a booking, delivery or service fee, or whether it only appears because you selected card payment.
Third, review your credit card if its annual fee, interest rate or rewards program changes. Removing a small checkout surcharge will not compensate for keeping an expensive card that no longer delivers useful benefits.
Finally, remember that businesses can offer discounts for payment methods such as cash or PayID. The full non-discounted price must still be displayed clearly, and the discount should be explained before you order or pay.
Is the change worth it for shoppers?
For most consumers, yes — mainly because it makes prices easier to understand and compare. The direct saving on one transaction may be small, but the annual total across groceries, cafés, restaurants, services and online purchases can be meaningful.
The limitation is that card processing costs do not disappear. Some businesses may spread them across all prices, meaning cash customers could also help cover those costs. Even so, knowing the complete price before payment is usually more useful than discovering an extra percentage at the terminal.
