The end of credit card payment surcharges: What businesses need to know

From 1 October 2026, Australian businesses will no longer be able to apply surcharges to payments made via Eftpos, Visa, Mastercard and American Express.  The change follows reforms announced by the Reserve Bank of Australia (RBA) aimed at making pricing simpler and more transparent for consumers.

For many businesses, this will mean absorbing an additional cost that has traditionally been passed on to customers.

What does this mean for your business?

Payment processing fees do not disappear when surcharging ends.  Instead, they become another operating expense that must be factored into pricing and profitability calculations. Businesses with a high volume of lower-value transactions may feel the impact most, as card processing costs can represent a larger percentage of revenue on smaller sales.

How can businesses respond?

Businesses may need to consider:

• Reviewing existing pricing structures to ensure card processing costs are reflected in overall pricing.
• Implementing modest price increases across products or services to spread the cost across all customers.
• Negotiating with payment providers to secure lower merchant service fees.
• Encouraging lower-cost payment methods, such as direct debit or bank transfer for recurring transactions.
• Improving operational efficiency to offset the additional cost through productivity gains.

An opportunity to reassess pricing

While the surcharge ban will create additional costs for many businesses, it also presents an opportunity to review pricing strategies and ensure products and services remain appropriately priced.  Businesses that understand their margins and cost drivers will be best placed to manage the transition without significantly impacting profitability.

If you would like assistance understanding how these changes may affect your business, please contact us.

This article provides general information only and should not be relied upon as professional advice. Businesses should consider their individual circumstances when assessing the impact of these changes.

Published Monday 24 August 2026.