Australia to scrap card surcharges in October

The RBA noted businesses charging the same rate on all cards.

Australia’s central bank is removing surcharges on debit, prepaid, and credit cards on designated eftpos and card networks, saying that it no longer achieves its original purpose.

Separately, the Reserve Bank of Australia (RBA) announced that it is lowering the caps on interchange fees paid by Australian businesses. This change will come into effect on 1 October for domestic cards, and 1 April 2027 for foreign cards alongside some other changes to payment costs.

The surcharge framework is gone beginning 1 October 2026.

The RBA observed an “increased prevalence of businesses surcharging all cards at the same rate” as one of the reasons for removing the surcharge framework.

The RBA also admitted to challenges with enforcing the current surcharging framework, and less customers using cash.

The surcharging framework was intended to steer customers towards making more efficient payments when it was first introduced two decades ago, it noted.

“Removing surcharging would make card payments simpler, more transparent and increase competition among payment service providers,” the RBA said in an online statement on 31 March 2026.

Removing surcharging also aligns with the preference of most consumers for payment costs to be incorporated into advertised prices, it added.

Meanwhile, the lower caps on interchange fees is expected to lower business’ costs when accepting domestic or overseas card payments, with small businesses expected to benefit most.

The RBA also committed to increase transparency over fees charged by card networks and payment providers, with the aim of strengthening competition.

Separately, Australia’s regulator said that it will begin a public consultation in mid-2026 for retail payment systems that include mobile wallets, three-party card networks, buy now pay later services, and e-commerce platforms.