If you run a business that currently surcharges customers for card payments, your pricing model is about to change. The Reserve Bank of Australia has confirmed that card surcharges on debit and credit cards will be banned from 1 October 2026, with lower interchange fees accompanying the change to help offset the impact on businesses.
This is a significant shift that will affect nearly every business in Australia, and the time to start planning is now — not in September.
What the RBA Has Decided
In its March 2026 Conclusions Paper following its Review of Retail Payments Regulation, the RBA made three key determinations:
- Surcharging ends on 1 October 2026
The RBA’s review found that surcharging no longer achieves its original purpose — encouraging consumers toward cheaper payment methods. Instead it has created complexity and confusion. Only 13% of consumers report being consistently informed about surcharges before completing a transaction, and 76% of consumers want surcharging to stop.
- Interchange fees will be reduced
The RBA is lowering the maximum interchange fee caps on domestic debit and consumer credit card transactions, with small businesses receiving a proportionally larger reduction than large businesses. A new cap on interchange fees for foreign card payments will also be introduced, taking effect from 1 April 2027.
- Card payment fee transparency will improve significantly
Payment networks including eftpos, Mastercard and Visa, along with large acquirers, will be required to publish the fees they charge. Businesses will receive standardised information on their statements, making it easier to compare costs across providers and obtain accurate quotes.
Key Dates
- 1 October 2026 — Surcharging on debit and credit cards banned. Reduced interchange caps on domestic cards take effect.
- 1 April 2027 — Interchange cap on foreign cards takes effect. Additional payment cost transparency requirements for some providers begin.
What This Means for Your Business
If you currently surcharge customers, you will need to stop from 1 October 2026 and review how you recover card acceptance costs. The most common approach will be to factor card acceptance costs into advertised prices — a legitimate and straightforward solution that requires careful planning, particularly across multiple channels or customer segments.
If you do not currently surcharge, the incoming reduction in interchange fees should mean lower card acceptance costs in your next payment service agreement — particularly for small businesses. This is also a good trigger to review your current merchant agreement and ensure you are receiving competitive rates.
Questions Your Accountant Should Be Helping You Think Through
- How does the removal of surcharging affect your pricing strategy and margin?
- Do you need to adjust your product or service prices, and if so, by how much?
- Is your current payment provider competitive given the new published fee landscape?
- Are there GST reporting implications if previously surcharged amounts were excluded from your reported turnover?
- For e-commerce businesses — are your payment gateway agreements due for renewal and does the timing align with October 2026?
These are not purely payment questions — they sit at the intersection of pricing, tax, and commercial strategy.
How Pace Advisory Group Can Help
At Pace Advisory Group, we advise Melbourne businesses across construction, e-commerce, franchising and healthcare on exactly these kinds of commercial and tax challenges. As the October 2026 deadline approaches, we can help you work through the pricing implications, review your cost structures, and ensure your GST obligations are correctly handled through the transition.
Do not leave this to the last minute. The businesses that prepare early will be better positioned than those scrambling to update their systems and pricing in September.
Book a Consultation — paceadvisory.com.au
