The RBA’s 2026 Surcharge Ban
What the RBA has decided
The Reserve Bank of Australia (RBA) has recently released the final decisions of the Payments System Board (PSB) on the Review of Merchant Card Payment Costs and Surcharging. The PSB has concluded that a package of reforms that includes removing surcharging, reducing interchange fees and increasing transparency would be in the public interest and promote competition and efficiency in the payments system.
The key decisions of the PSB include;
1. Removing surcharging on debit, prepaid and credit cards on the designated eftpos, Mastercard and Visa card networks to make card payments simpler, more transparent and increase competition among payment service providers.
2. Lowering the caps on interchange fees paid by Australian businesses. These changes are expected to lower businesses’ costs when they accept domestic or overseas card payments. Small businesses should benefit the most because they tend to pay fees closer to the existing caps.
3. Increasing transparency over the fees charged by card networks and payment service providers to strengthen competition, and enhance competition between players within the payments chain, put downward pressure on card payment costs and make it easier for businesses to shop around for a better deal.
Most of these changes will come into effect on 1 October 2026, including the removal of surcharging and reductions in the interchange caps for domestic card transactions. The introduction of an interchange cap on foreign cards and some changes to payment cost transparency will come into effect later, on 1 April 2027, to ensure the payments industry has sufficient time to implement these more complex changes.
The RBA plans to start a public consultation in mid-2026 to assess the public interest case for regulating areas of the retail payments system that were not covered under this Review, including mobile wallets, three-party card networks, ‘buy-now, pay-later’ services and e-commerce platforms.
What this means for your business
This reform shifts how payment costs are managed. Rather than passing fees on at checkout, businesses will need to absorb them into pricing structures. This may require adjustments to product pricing, margin strategies, or average order value optimisation.
Businesses will no longer be able to add payment-related fees at checkout for these card types, nor can a handling fee be charged as a work around to these payment costs.
The ban doesn’t apply to cash, BPAY, PayPal, Diners Club, American Express – these are expected to be reviewed separately at a later date.
You may still charge a genuine service fee, booking fee, delivery fee or handling fee if it is a real component of the goods/services supplied and not just a disguised card surcharge. But the ACCC says it must be reflected in the displayed total price.
It is also important to note that while interchange fees are being reduced, costs will not disappear entirely. Businesses should expect a period of adjustment as payment providers update pricing and contracts reflect the new framework.
For more information on calculating surcharge costs head here.
How we will support you
We will work closely with you to navigate these changes and ensure your eCommerce environment remains commercially strong and conversion-focused.
As the payments landscape evolves, our focus is on ensuring your business is compliant and best positioned to manage the changes.
If you would like to discuss how these changes may impact your specific setup, we are here to help.
Resources
The Reserve Bank of Australia Surcharging Conclusions Paper
ACCC Card Surcharges Next Steps