--- title: "The October 2026 RBA surcharge ban, explained for Australian businesses" description: "From October 1, 2026, AU merchants can no longer surcharge eftpos, Visa, or Mastercard payments. Here's what changes, what it costs, and what to do." category: explainer published: 2026-04-28 source: https://readiness.aps.business/blog/october-2026-surcharge-ban-explained reading_time: 6 min --- # The October 2026 RBA surcharge ban, explained for Australian businesses From October 1, 2026, you can no longer pass card processing fees to your customers via a surcharge. Here's exactly what changes and how to prepare. From **October 1, 2026**, Australian businesses can no longer charge customers a surcharge for paying with eftpos, Visa, or Mastercard. The Reserve Bank of Australia (RBA) finalised the rules in its [March 2026 Conclusions Paper](https://www.rba.gov.au/payments-and-infrastructure/review-of-merchant-card-payment-costs-and-surcharging/). If you currently surcharge — and most AU SMBs do — this guide walks through what's changing, the dollar impact, and your options. ## What's actually changing Three things, all taking effect simultaneously on October 1, 2026: - **Surcharges on eftpos, Visa debit, Visa credit, Mastercard debit, and Mastercard credit are banned.** Adding any percentage on top of these payments is no longer allowed. - **Interchange fees are being reduced.** Credit-card interchange drops from 0.8% to 0.3%; debit-card interchange drops to either 8 cents or 0.16% of the transaction, whichever is lower. The RBA estimates this saves Australian merchants roughly $910 million per year. - **American Express is not in scope.** Surcharges on Amex are still permitted under the new rules. The combined intent is consumer protection: the RBA estimates Australian shoppers will collectively save about $1.6 billion per year from eliminated surcharges. The cost moves from consumers to merchants, partly offset by the lower interchange caps. ## What it costs your business The dollar impact depends on three numbers: 1. Your monthly card volume 2. Your current surcharge rate (if you surcharge today) 3. Your effective merchant service fee (MSF) — what your provider charges you For a typical AU café doing $50,000/month in card payments at a 1.5% surcharge: - **Monthly surcharge revenue lost:** $750/month - **Annual surcharge revenue lost:** $9,000/year That figure has to come from somewhere — either you absorb it (cutting margins), raise your prices to compensate, or negotiate a lower rate with your provider so the absorbed cost is smaller. For a quick personalised estimate, run the [free 60-second readiness check](/) — it asks for your monthly volume and current surcharge rate, then calculates your exposure in dollars. ## Your three options after October 1 ### Option 1: Absorb the cost Your prices stay the same; your margin shrinks. Simplest, but the most expensive long-term. The lower interchange caps soften the blow but don't eliminate it. This is the right path if your prices are already at the top of what your market will bear. ### Option 2: Adjust your prices A small across-the-board increase covers the absorbed cost. For the café above, raising prices by 1.5% offsets the loss. Customers don't see a separate surcharge line — the cost is rolled into the menu price. This is the most common path for hospitality and retail. ### Option 3: Negotiate a lower rate Most Australian SMBs overpay $400 to $1,200 per month on card processing without realising it, partly because they signed contracts when rates were higher and never re-negotiated. If your effective rate is above 1.4%, there's almost certainly a cheaper provider for your volume. The reduced interchange caps mean providers' costs are dropping too — push them to pass the savings on. ## What to do this week 1. **Run the readiness check.** 60 seconds, gives you your dollar exposure plus a 90-day plan. [Start here](/). 2. **Review your current provider's rate.** Check your last statement for the effective rate (total fees ÷ volume × 100). Anything above 1.4% is a candidate for renegotiation. 3. **Get a comparison.** Compare your current rate against the 19 major AU providers using volume-weighted pricing — see the [rate comparison tool](/lp/rate-comparison). 4. **Decide your pricing strategy** for October. Don't wait until September — give yourself 4-6 weeks to test a price adjustment if that's the path you choose. ## Common questions ### Does the ban apply to American Express? No. Surcharges on Amex are still permitted. Some merchants are considering accepting Amex only with a surcharge to recover costs, but Amex's higher base fees often make this less attractive than it looks. ### What about online payments? The ban applies to in-person and online card payments equally. If you currently surcharge in your e-commerce checkout, that has to stop on October 1. ### Can I add a "card payment fee" instead of a "surcharge"? No. The ban is on the practice of charging more for card payments — the wording on the receipt doesn't matter. ### What if I just stop accepting cards? You can. But Australian consumer behaviour is overwhelmingly card-first — going cash-only typically loses more revenue than it saves on fees. The smarter move is to get your card-acceptance costs down to a level you can absorb. ## Get your personalised plan The October ban is in 5 months. The cheapest way to find out what it costs your specific business — and what to do about it — is the [free 60-second readiness check](/). It pulls your numbers, compares 19 AU providers, and emails you a 90-day action plan tailored to your situation. Or call APS directly on [**1300 096 983**](tel:1300096983) for a no-obligation conversation about your options.