June 2026
There are two things currently happening with card surcharge rules that businesses need to be across. The first relates to rules that already apply. The second is a significant change coming from 1 October 2026.
What already applies
Businesses can charge a surcharge for card payments, but the surcharge must not be more than what it costs the business to process that payment type. This applies to Visa, Mastercard and EFTPOS transactions across credit, debit and prepaid cards.
A few things worth noting under the current rules:
- a business cannot escape the ban by calling a card payment surcharge something else. If a service fee or handling fee only applies to some payment methods, it is likely a card payment surcharge by another name and the ban on excessive surcharges applies;
- if a business wants to set the same surcharge for all card payment types, it must not be more than the lowest surcharge it can set for a single card payment type. The business cannot average out its costs across payment types;
- if there is no way for a consumer to pay without paying a surcharge, the business must include the minimum surcharge in the displayed price for its products; and
- there can be penalties for businesses that charge excessive card payment surcharges or that mislead consumers about their prices.
What your costs are likely to be
Businesses processing less than $1 million in card transactions per year can expect processing costs in the following ranges: 0.85% to 2% for debit or EFTPOS and 1% to 2% for credit cards. These figures are based on the Reserve Bank of Australia’s 2023-24 data and represent the ceiling on what you can legitimately surcharge. If you are surcharging above these ranges, you should review your position.
Businesses should check their statements regularly and review their card payment surcharge amounts, as costs may change over time. Businesses should contact their bank or payment facilitator to better understand their costs.
What is changing from 1 October 2026
On 31 March 2026, the Reserve Bank of Australia announced it would lift its current ban on ‘no surcharge’ rules for prepaid, debit and credit cards from Visa, Mastercard and EFTPOS. From 1 October 2026, those card networks can ban businesses from applying card payment surcharges when accepting payments. When they impose a ban, this means businesses cannot charge the customer a surcharge for those payment types.
In practical terms, this means that from October, Visa, Mastercard and EFTPOS may prohibit surcharging entirely on their networks. If they do, a business that continues to apply a surcharge for those card types would be in breach of the card network rules.
What this means for your business
If card networks implement a no surcharge policy, businesses that currently use surcharging as a revenue offset will need to decide whether to absorb those processing costs into their pricing or restructure how they pass costs on. This is particularly relevant for businesses in that rely heavily on card payments.
We recommend you:
- review your current surcharging arrangements now and confirm they comply with the existing rules;
- speak with your bank or payment facilitator about what their network rules will require from October; and
- consider now whether your pricing model needs to be adjusted if surcharging is no longer an option for Visa, Mastercard and EFTPOS transactions.
We are happy to assist with any commercial contracts, terms of trade or pricing disclosure questions that arise from these changes. Please contact our office if you would like to discuss your situation.