7 August 2026 · 6 min read

RBA Surcharge Ban 2026: What It Means for Your Small Business

If your business adds a card surcharge at checkout, change is coming. The Reserve Bank of Australia (RBA) has confirmed that surcharging on eftpos, Mastercard and Visa card payments will be banned from 1 October 2026. At the same time, the RBA is cutting the interchange fees businesses pay to accept cards, and forcing more transparency on payment costs.

For small business owners across Brisbane, Broadmeadows and the rest of Melbourne, and beyond, this isn't just a compliance box to tick — it affects how you price your products, manage cash flow and choose a payment provider. Here's a plain-English breakdown of what's changing and what you should do before October.

What's actually changing

The RBA's reforms follow its Review of Merchant Card Payment Costs and Surcharging, released in March 2026. There are three main pieces.

1. Surcharging is banned from 1 October 2026

Businesses will no longer be able to add a separate surcharge for customers paying by debit, prepaid or credit card on the eftpos, Mastercard or Visa networks. American Express has also confirmed it will remove surcharging from the same date, even though it isn't formally regulated by the RBA in the same way.

Importantly, this only applies to card surcharges. Weekend surcharges, public holiday surcharges, and separate booking or service fees are unaffected — those are a different issue entirely.

2. Interchange fee caps are coming down

Interchange is the wholesale fee your bank pays the cardholder's bank every time a customer taps their card, and it's usually the biggest chunk of your merchant service fee. The RBA is lowering the caps on domestic debit and credit card interchange from 1 October 2026, and introducing a new cap on foreign-issued card fees from 1 April 2027. Small businesses are expected to benefit the most, since they typically pay fees closest to the existing cap.

3. Payment providers must be more transparent

Card networks and large acquirers will be required to publish the fees they charge. This is meant to make it easier for you to compare providers, negotiate, and spot whether you're being overcharged.

Why the RBA made this call

The RBA found that surcharging isn't working the way it was designed to. It was introduced over two decades ago to nudge consumers towards cheaper payment methods. In practice, surcharges are often poorly disclosed, confusing for customers, and don't reflect the actual cost of processing a payment. Most consumers, understandably, would rather see one all-inclusive price than a surprise fee at the register.

The trade-off is the lower interchange caps — the idea being that if you can no longer recover card costs through a surcharge line item, your underlying cost of accepting cards should fall instead.

What this means for your pricing

Here's the practical bit: your cost of accepting card payments doesn't disappear — it just needs to be built into your prices rather than charged separately.

If you currently apply a surcharge, you have a decision to make before October:

• • Absorb the cost into your existing margins, especially if lower interchange fees largely offset what you were recovering through surcharges.
• • Build it into your sticker prices across the board, so the cost is spread evenly rather than falling only on card-paying customers.
• • Review your payment provider now that fee transparency rules are coming — there may be a cheaper deal available once providers have to publish their pricing.

If you don't currently surcharge, you may see little immediate change, but it's still worth reviewing your merchant agreement. Many acquirers will be removing surcharging functionality from terminals regardless of whether you use it.

Key dates to diarise

One thing to watch: if an invoice is issued before 1 October but the customer pays after that date, surcharging may no longer be available at the time of payment. It's worth checking with your payment service provider about how they're handling the transition, as some are disabling surcharging functionality ahead of the deadline.

Action checklist before October 2026

• • Talk to your payment terminal provider about when surcharging will be switched off
• • Model the impact of losing surcharge revenue against expected interchange savings
• • Decide whether to adjust list prices, and communicate any changes to customers early
• • Review your merchant service fee once providers begin publishing pricing
• • Check any point-of-sale, invoicing or e-commerce systems that currently calculate surcharges automatically

What's not covered (yet)

This round of reforms deals specifically with designated card networks — eftpos, Mastercard and Visa. Buy now, pay later services, mobile wallets, and other non-designated payment systems are being considered separately, with a further RBA consultation expected through 2026. If your business relies heavily on BNPL or wallet-based payments, it's worth keeping an eye on that process too, as further changes could follow.

Removing a surcharge line and adjusting your pricing has flow-on effects for your margins, your GST calculations, and how you report income — it's not just a payments question. Whether you run a cafe in Broadmeadows, a trades business in Melbourne's north, or a retailer near our Woolloongabba office in Brisbane, the same principles apply — but the right approach depends on your numbers.

This article is general information based on the RBA's Conclusions Paper and related announcements as at August 2026. It isn't personal financial or tax advice — speak with your accountant about how these changes apply to your business.

Your local advisers

Get ahead of the surcharge ban

Zahid and Inam can review your pricing, merchant fees, and cash flow against the RBA's 2026 payment reforms.

Zahid Chowdhury

Founder & Principal Accountant

Zahid helps with structure, strategy, and big tax decisions so you can grow with confidence.

Inam Asiful

Senior Consultant

Inam keeps your BAS, payroll, and tax lodgements clear, accurate, and on time.

Disclaimer: This article is general information only and is not tax, financial, or legal advice.

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