Australian businesses and customers are adjusting to a nationwide change to card surcharges that took effect on October 1, 2026. For many everyday purchases, a shop can no longer add a fee simply because someone pays with a Visa, Mastercard or eftpos card. The change was implemented through payment-network rules following the Reserve Bank of Australia’s review, and it reaches more payment brands through their own decisions. At the same time, merchants still pay to accept card transactions and many are reviewing their pricing and payment providers. The key distinction is between a card-specific surcharge and other properly disclosed charges.
Which payment cards are covered?
The RBA confirms that eftpos, Mastercard and Visa introduced rules that removed surcharges for their credit, debit and prepaid products from October 1. American Express, UnionPay and PayPal also announced their own no-surcharge arrangements, although they differ in how they are regulated. Customers should not automatically assume every possible payment product or specialist transaction has identical conditions. The card-network rule and a merchant’s contract are relevant, while consumer pricing obligations under Australian Consumer Law continue to apply.
Can a cafe, hairdresser or online store still add 1.5% for card use?
As a general rule, not on covered card transactions. Businesses need to remove point-of-sale surcharging settings, update menus and websites, and check that third-party payment processors are not continuing to apply a banned card-specific percentage or fixed fee on their behalf. The RBA’s guidance says a merchant may still build payment acceptance costs into its general advertised pricing. This means the price of a product could change for every customer; that is different from quoting one price and then adding an extra amount only at the card terminal.
What about weekend, public holiday and booking fees?
The change does not itself abolish weekend or public-holiday surcharges, nor genuine booking or service fees that are not imposed because the buyer uses a card. Those charges must still comply with applicable rules, including clear disclosure and the prohibition on misleading representations. Retailers should be wary of simply renaming an identical card charge a service fee if the trigger remains card payment. Customers who encounter a questionable fee can retain their receipt, photograph advertised pricing and use the ACCC guidance to understand the applicable framework.
Why do businesses say the ban makes trading more expensive?
Merchant acquiring services, terminals and processing still cost money. In some shops, acceptance expenses are a meaningful proportion of a small transaction or a high-volume, low-margin service. Businesses can compare providers, negotiate a better plan, direct people to lower-cost alternatives or adjust general pricing. The RBA is also reducing interchange fee caps and requiring greater fee transparency on a phased schedule. Those prospective savings may not be identical for every type of business or payment mix.
Are ATO tax payments affected?
Some coverage of the surcharge reform has become mixed up with a separate Australian Taxation Office proposal concerning credit-card acceptance for tax payments. Reports in October describe government intervention to delay a planned ATO restriction. That policy is separate from whether an ordinary private business can add a card surcharge. Taxpayers and accountants should check the ATO’s current payment-method information before making a large tax payment, because an earlier announcement or newspaper headline may no longer describe the operative date.
What happens next in 2026 and 2027?
The RBA has set out several stages. Larger participants must publish selected information on payment costs from October 30, 2026. Further merchant-fee pass-through transparency is scheduled for January 2027, and changes affecting foreign-issued cards and detailed merchant statements begin in April 2027. Owners should review provider statements across these dates rather than assume fees automatically fall on October 1. Consumers benefit most from comparing the full advertised price, not just whether a separate card fee has disappeared.
Frequently asked questions
Can a shop ask customers to pay cash?
A merchant can promote accepted payment methods, but must still meet consumer and card acceptance obligations applicable to its business.
Can stores raise sticker prices?
Generally a merchant may incorporate costs into overall prices, subject to normal pricing and competition laws; it cannot simply apply a prohibited card-only surcharge.
Is every service fee now illegal?
No. The ban targets card-payment surcharges and does not automatically eliminate disclosed service fees unconnected to payment method.