The October 2026 RBA surcharge ban, explained for Australian businesses

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. 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.
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 for a no-obligation conversation about your options.