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Australia card surcharge ban (from 1 October 2026)

From 1 October 2026, the Reserve Bank of Australia (RBA) lifted its prohibition on ‘no-surcharge’ rules for the designated card networks—eftpos, Mastercard and Visa—which introduced bans on card-payment surcharges for in-scope credit, debit and prepaid cards (including internationally issued cards on those networks, per the RBA FAQ). American Express, UnionPay and PayPal also removed surcharging; they are not RBA-designated networks. PayPal's no-surcharge rule took effect on 5 October 2026 (RBA FAQ). This page is for merchants—not legal advice. Last verified: 8 Oct 2026.

U.S. state rules: credit card surcharge laws by state.

What changed

  • The RBA concluded card surcharging on designated networks should end from 1 October 2026 and varied its standards (F2026L00434) so networks may impose no-surcharge rules.
  • eftpos, Mastercard and Visa introduced no-surcharge rules from 1 October 2026. American Express, UnionPay and PayPal also removed surcharging (not RBA-designated; PayPal from 5 October 2026).
  • Until 30 September 2026, businesses had to follow cost-based card-payment surcharging rules for eftpos, Mastercard and Visa. Those rules ended when the network no-surcharge rules took effect from 1 October 2026.

Other implementation dates (RBA conclusions paper / FAQ): lower interchange fee caps on domestic-issued card transactions acquired in Australia from 1 October 2026; designated networks and large acquirers begin publishing specified card-fee information by 30 October 2026; from 1 April 2027, interchange caps apply to foreign-issued card transactions acquired in Australia and acquirers must provide more detailed merchant statements.

Who it applies to

Any Australian business that accepts in-scope card payments and previously added a card-payment surcharge must comply with network scheme rules and merchant contracts. Many payment providers planned to remove surcharging functionality from terminals around 1 October 2026 (RBA FAQ). Exceptions may apply only where network rules or law allow—the RBA directs merchants to their payment service provider.

  • Invoices: If card payment is made on or after 1 October 2026, surcharging may no longer be available even when the invoice was issued earlier (RBA FAQ).
  • Not-for-profits and business-to-business: Not exempt unless a card network's rules or law provide an exemption (RBA FAQ).
  • Taxis: Taxi surcharging remains under state and territory regulators; where taxi surcharges continue, they are outside the RBA network reforms (RBA FAQ).
  • Stopping card acceptance: Businesses may choose which payment methods they accept, though some must accept cash under ACCC cash acceptance industry codes (RBA FAQ).
  • Payment-method discounts: Discounts for cash, PayID or other methods are allowed if the displayed price is the full price without the discount (ACCC; RBA FAQ on discounts instead of surcharges).

What is still allowed

  • Building card acceptance cost into overall product or service prices (ACCC and business.gov.au).
  • Weekend and public holiday surcharges in hospitality, plus booking fees, service fees, and other non-card-related charges (RBA FAQ; business.gov.au).
  • Payment-method discounts when the full undiscounted price is shown clearly (ACCC).
  • Acquirer or terminal service fees for equipment or processing are fees for services provided—not card-payment surcharges in the RBA's sense (RBA FAQ).

Penalties and enforcement

Until 1 October 2026, businesses had to follow cost-based card-payment surcharging rules for eftpos, Mastercard and Visa (ACCC guidance described those obligations). From 1 October 2026, card networks and payment service providers enforce ‘no surcharge’ scheme rules (ACCC). The ACCC and state and territory consumer protection agencies enforce Australian Consumer Law on misleading price displays and misstated reasons for price increases.

Price-rise calculator (AUD)

If you used to pass card fees through a surcharge and now need one sticker price, this estimates a uniform price that keeps the same expected net per sale given your card share and merchant fee. Numbers stay in your browser.

How the price is calculated

Uniform price ≈ (list price + card share × fixed fee) ÷ (1 − card share × fee percent). The formula grosses up so the merchant fee is paid on the higher sticker price—not only the old list price. Example: 100% card at 1.0% with no fixed fee gives about $60.61, while the ACCC's $60 → $60.60 illustration adds 1% to the list price without that gross-up.

Worked example

List price $50.00 · 50% card / 50% cash · merchant fee 1.6% + $0.10 per card transaction:

Suggested uniform price $50.45 (0.90% above list) · expected blended fees $0.45 · expected net $50.00 per sale.

FAQ

Can Australian businesses still surcharge cards after 1 October 2026?
From 1 October 2026, the designated networks eftpos, Mastercard and Visa introduced ‘no-surcharge’ rules for eftpos debit and prepaid; Visa and Mastercard credit, debit and prepaid (generally including internationally issued cards on those networks, per the RBA FAQ); and American Express credit. UnionPay and PayPal also removed surcharging but are not RBA-designated (PayPal from 5 October 2026 per the RBA FAQ). Exceptions may apply under network rules or law—check your scheme rules and payment service provider.
Who enforces the ban if a business still surcharges cards?
Card networks and payment service providers enforce ‘no surcharge’ scheme rules—not the ACCC (ACCC). If a consumer believes a business is incorrectly surcharging card payments, the RBA FAQ says they can raise it with the business, inform the relevant card network (the network appears on the EFTPOS receipt), contact their state or territory consumer protection agency, or report misleading price displays to the ACCC.
Are weekend, public holiday, booking, or service fees banned?
No. The RBA FAQ and business.gov.au say the changes apply only to card payment surcharges—not weekend or public holiday surcharges, booking fees, service fees, or other non-card-related charges. The ACCC says other fees must be included in a single total price where that total can be calculated, and relabelling a card surcharge as another type of fee can be misleading.
How should I recover card costs if I cannot surcharge?
You may build acceptance costs into your overall prices (ACCC and business.gov.au). The ACCC’s example incorporated a 1.0% card cost into a $60 haircut price ($60.60). Use the calculator above for your average sale, card mix, and merchant fee from your statement.

Sources

Last verified: 8 Oct 2026.