Australia Card Surcharge Changes 2026: What Changes From October 1?

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?

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.

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?

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.

Check the total, not just the disappearing surcharge

Removing a separate card fee does not prove your usual purchase became cheaper. Compare the old total with the new total for the same basket.

Suppose a meal previously cost A$60 plus a 1.5% card surcharge. The receipt total was A$60.90. If the new all-in menu price is A$61, you pay ten cents more even though the surcharge line has disappeared. These are hypothetical receipt figures, not evidence about a named business.

In the unchanged-price case the saving is A$0.90 per purchase. Four such purchases a month would save A$3.60, or A$43.20 over twelve months. In the A$61 case there is no saving. Do not apply the fee percentage to your whole household budget: only eligible purchases that previously attracted that fee count.

Before challenging a charge, identify the payment method and what the fee actually describes. Keep the dated receipt, advertised price and payment screen. A delivery charge or a service charge is a different issue from a card surcharge.

RBA's implementation FAQ and ACCC guidance explain the applicable rules and complaint routes. Use those routes for the actual payment network and fee; do not assume every extra charge breaches the card rules.

*Worked examples added 9 October 2026. Hypothetical inputs are labelled and are not live offers or forecasts.*

Common questions

Are all card surcharges banned from October 1, 2026?

Visa, Mastercard, eftpos, American Express and UnionPay have announced no-surcharge rules from October 1. PayPal follows from October 5. Network exceptions may apply, so the most accurate description is that card surcharges will generally be removed rather than that every possible payment fee is prohibited by one blanket law.

Can a restaurant still charge a Sunday surcharge?

Yes. Weekend and public-holiday surcharges are separate from card-payment surcharges and may continue if displayed correctly.

Can a business offer a cash discount?

Yes. Businesses may offer discounts for cash, PayID or another payment method, but the ordinary full price must be displayed clearly.

What should I do if a card surcharge still appears?

Ask the business or its payment provider why the fee was charged and keep evidence of the transaction. The network or payment provider enforces its no-surcharge rule, while the ACCC and state consumer agencies continue to oversee misleading price claims.

Bottom line

From 1 October 2026, most Australian shoppers should stop seeing separate Visa, Mastercard, eftpos and American Express surcharges at cafés, restaurants, shops and online checkouts. On a A$100 purchase, that could remove A$1 to A$2 where a business previously charged 1% to 2%. But weekend, public-holiday, booking and service fees can still remain, and some businesses may adjust their base prices.