Big changes are coming to the Australian payments landscape, with the Reserve Bank of Australia announcing that card payment surcharges on debit, credit and prepaid cards will be removed from October 2026.

For years, Australians have become used to seeing extra fees added at checkout when paying by card, whether grabbing a coffee, dining out or shopping online. Under the new reforms, the advertised price will become the final price for customers using EFTPOS, Mastercard or Visa.

The changes are expected to save consumers around $1.6 billion annually in surcharge fees, while businesses could benefit from reduced transaction costs through lower interchange fee caps and improved fee transparency under the new requirements.

Why the Change?

According to the RBA, the current surcharge system is no longer achieving its original purpose of encouraging consumers to choose lower cost payment methods. With Australia rapidly moving towards a cashless economy, surcharges have become increasingly common and often frustrating for customers.

The reforms will also require payment providers including EFTPOS, Mastercard and Visa to publish the fees they charge, helping businesses better compare providers and negotiate fairer pricing.

A Shift Towards Transparency

The reform signals a major shift in Australia’s payments system and could encourage greater competition among payment providers. Businesses will likely review their merchant facilities, transaction fees and banking arrangements over the coming months as the industry adapts. Organisations should now consider reviewing merchant service fees and payment provider agreements, assessing pricing strategies ahead of the October 2026 rollout and ensuring any future pricing changes are communicated clearly with customers as the industry continues to evolve.

As Australia continues its transition towards a more digital economy, these changes aim to create a simpler, more transparent payment experience for both businesses and consumers.

What This Means for Your Businesses

While the removal of surcharges will be welcomed by many customers, some businesses, particularly small businesses and hospitality operators, are concerned about how they will absorb these costs moving forward.

Industry groups have noted that businesses may need to build transaction costs into their pricing structures, potentially leading to slight increases in advertised prices.

Contact the PT Ignite team today, if you would like any assistance preparing for these changes. The PT Ignite team is able to help with cashflow projections pricing discussions.