So long, surcharges.

Businesses in Australia can no longer apply surcharges on card payments.

From 1 October 2026, businesses in Australia can no longer add surcharges on card payments. At first glance, it seems the Australian Government has struck down a ban. In reality, the RBA has lifted a historical prohibition on ‘no-surcharge rules’. Designated card networks like Mastercard, Visa and EFTPOS (credit, debit and prepaid) gained authority to introduce their ‘no-surcharge rules’, in compliance with the RBA’s change in policy.

Other networks (unregulated by the RBA) like American Express, UnionPay and PayPal mirrored these rules. All merchants must comply with the new rules, subject to exceptions (such as fares regulated by law). Weekend and public holiday surcharges, booking fees and services fees are unrelated to how the customer pays, and will still apply.

The basis for this change is simple; consumers pay the price they see advertised. The aim of the ban is to encourage more simplified payments for customers, improved price transparency, and less uncertainty and confusion at point of sale. The RBA stated that the ‘intended purpose’ of the historical surcharging framework is no longer creating efficiency, and payment service providers have become less competitive.

So where are the extra cents going?

Previously, businesses could pass merchant service fees onto their customers. In light of the new rules, businesses may need to consider changing their overall pricing structures to absorb the costs incurred by accepting card payments. Those costs aren’t disappearing anytime soon, so some businesses may consider incentives to steer customers towards other payment methods, like cash (if possible).

For businesses that do so, it’s important your price displays reflect the total price payable and is not misleading. Discounts for preferred payment methods should not be displayed more prominently, or as the only option.

Who’s the regulator in all of this?

The RBA regulates card networks and banks, however, the card networks who imposed the ‘no-surcharge rules’ are responsible for enforcing them through their agreements with merchants. Any misleading claims about prices are reportable to the ACCC and agencies responsible for enforcing Australian Consumer Law. Although the RBA is central to the policy shift, it does not directly regulate merchants.

The risks if your business is not prepared

Your payment systems should already be compliant with the rules, as most of them automatically removed surcharges from payment systems. But the absorption of fees will likely impact your financial position, and potentially your agreement with your card network. Customers are entitled to raise it directly with the business if they are surcharged – so you risk losing customers if they feel misled. It’s important to update your consumer communications and be prepared to answer consumer queries regarding the change. Avoid working around it by trying to disclose the surcharge as an ‘admin’ or ‘platform’ fee – this is still considered misleading and answerable to discipline and penalties by the ACCC.

What’s next?

More information from card networks will be published later this month. Your payment service provider and their regulators have resources available to support in implementation.

Legalite steps in to simplify things, so you can carry on BAU. And, if you would like a second pair of eyes on your pricing displays or advertisements, book a discovery call with the Legalite team. We'll keep your business compliant, protected, and on track for success amidst the changes.

Thanks to our intern, Naomi Rodricks, for this article.