Where you were. Where you are. Where you’re going.
GTB Client Insight · 28 September 2026 · For business owners who accept card payments
THE SHORT VERSION
From 1 October 2026 you can no longer add a surcharge to eftpos, Mastercard or Visa payments, and the RBA’s lower card fees take effect. Card costs now have to be recovered through your prices and managed through your provider. If you surcharge today, act this week. If you don’t, check whether your provider is passing the savings on to you.
01 Where You Were
| When | What happened |
|---|---|
| 2003 | First interchange benchmarks. Businesses allowed to surcharge. |
| 2016 | Credit benchmark of 0.50% and a 0.80% cap. Surcharges limited to the actual cost of accepting the card. |
| 2021 | Debit interchange tightened. Providers expected to offer least-cost routing (sending debit payments over the cheaper network). |
| 2024 | Government signals a debit surcharge ban. RBA opens a formal review. |
| 31 Mar 2026 | RBA confirms surcharges will be removed and interchange cut. |
The RBA concluded surcharging had stopped working as a price signal. About 16% of merchants surcharged, costing around $1.8 billion a year, of which roughly $1.6 billion was paid by consumers. With cash use falling, customers could rarely avoid it.
02 Where You Are
| Item | Before | From 1 Oct 2026 |
|---|---|---|
| Surcharging on eftpos, Mastercard, Visa | Allowed up to cost of acceptance | Not allowed |
| Consumer credit interchange | 0.50% average, 0.80% cap | 0.30% cap |
| Debit and prepaid interchange | 10 cents or 0.20% cap | 8 cents or 0.16% cap |
| Commercial credit interchange | 0.50% average, 0.80% cap | 0.80% cap, average removed |
American Express, UnionPay and JCB have said they will stop surcharging too, but that is their own decision, not an RBA rule. Surcharging on PayPal and buy now pay later is unclear, so confirm with your provider before relying on it.
Who it affects
Your business. The RBA estimates merchants will save about $910 million a year, with small business gaining most, but only if the provider passes it on. Cost-plus (interchange-plus) plans get the cut automatically. Flat-rate plans only improve if the provider lowers its rate. If you were surcharging, you now absorb the full cost and margin takes the hit.
Your customers. No more surcharges on those networks, so the price shown is the price paid. Banks are offsetting lost interchange by trimming rewards, raising fees and shortening interest-free periods (for example, ANZ business cards move from up to 55 to up to 44 days from 5 October). Expect fewer perks on business cards too.
Small versus large merchants. Large merchants negotiate their own rates and often sit on cost-plus pricing. Small merchants typically pay a blended flat rate, so they have the most to gain but must ask. For small tickets, fixed pertransaction fees bite hardest. For large invoices, the percentage is the issue, so steer customers to bank transfer or PayID.
Overseas payments. The reforms are not only domestic, but they are limited. They apply to cards processed in Australia. From 1 April 2027, foreign-issued cards used at Australian businesses will be capped at 1.0%. Australian cards used overseas or on foreign websites are not covered, so the usual international fee (around 3%) and currency margin still apply.
03 Where You’re Going
Five moves to make now
1. Switch surcharges off everywhere. Terminal, online checkout, invoices and POS. A card-only fee renamed “service fee” is still a surcharge. Invoices issued before 1 October cannot be surcharged if paid after it.
2. Know your true rate. Divide total payment fees (including terminal rental and monthly fees) by card sales, using your September and October statements.
3. Ask your provider in writing how they will pass on the cuts. Compare flat versus cost-plus pricing for your card mix, and confirm least-cost routing is on. Some banks have already announced lower flat rates from 1 October (CommBank 0.99% in store, Westpac from 0.79% on eligible plans), so confirm current terms before switching.
4. Reprice, don’t hide it. To recover a card fee of f, lift the price by f ÷ (1 − f). A 1.5% fee needs about a 1.52% increase. Offer a discount for bank transfer on large invoices.
5. Report it as a cost of sale. Track card fees as a percentage of card revenue. In the accounts they sit in selling or operating expenses, not inventory cost. If you used to record surcharge income, expect revenue to fall and net payment costs to rise.
Dates to watch
| Date | What to expect |
|---|---|
| 30 Oct 2026 | Large providers begin publishing average merchant fees by business size. A useful benchmark for negotiating. |
| 30 Jan 2027 | First data on how much of the interchange cut providers have passed through. |
| 1 Apr 2027 | 1.0% cap on foreign-issued cards, and more detailed merchant statements. |
| By end of 2026 | RBA priorities for its next review covering Amex, buy now pay later, mobile wallets and online routing. |
Sources: RBA Conclusions Paper (31 March 2026) and FAQs, RBA Payments System Board update (June 2026), ACCC, provider and bank announcements. Provider rates are as announced and may change. This is general information based on public sources. It is not tax, legal or financial advice and does not consider your circumstances. Contact GTB to discuss how these changes affect your business.
