If your business currently charges customers a credit or debit card surcharge, there is an important change coming that you need to prepare for.
From 1 October 2026, card surcharges will no longer be permitted under the new no-surcharge rules being introduced by the major card networks.
This means businesses that currently add a surcharge when customers pay by card will need to review their pricing, payment systems and customer communications before the change takes effect.
What Is Changing?
The Reserve Bank of Australia (RBA) has completed its review of merchant card payment costs and surcharging and has decided that card surcharging should end.
From 1 October 2026, Visa, Mastercard and eftpos will introduce no-surcharge rules covering credit, debit and prepaid cards. American Express has also announced that it will remove surcharging from the same date.
In simple terms:
Businesses will no longer be able to add a separate fee to a customer’s bill simply because they choose to pay by card.
The change applies to card payment surcharges, rather than every type of additional fee a business may charge.
For example, the changes do not apply to things such as weekend or public holiday surcharges in the hospitality sector, booking fees or service fees, provided those charges comply with the relevant requirements.
What Happens Before 1 October 2026?
Until 30 September 2026, businesses must continue to follow the existing card surcharge rules.
Under the current rules, a surcharge generally cannot be higher than the business’s cost of accepting that particular payment type. Businesses must also meet requirements around displaying and disclosing surcharges.
So if your business currently charges a card surcharge, you should not simply remove it immediately without considering how the change will affect your pricing and cash flow.
What Does This Mean for Small Businesses?
The biggest practical change is that businesses will need to decide how they want to handle the cost of accepting card payments once separate surcharges are removed.
Businesses will still incur payment processing costs.
Instead of charging those costs separately at the checkout, businesses can consider incorporating their costs into their overall pricing.
For example, if a business currently charges $100 for a service plus a card surcharge, it may need to reconsider the advertised price of that service once the surcharge can no longer be applied.
The RBA has specifically noted that businesses can reflect card payment costs in their overall prices rather than charging them as a separate surcharge
Will Businesses Have to Absorb the Cost?
Not necessarily.
The removal of card surcharges does not mean businesses will stop paying card processing fees.
Instead, businesses will need to consider how those costs fit into their overall pricing structure.
For some businesses, this may mean adjusting prices.
For others, it may mean reviewing payment providers, negotiating better rates or looking at ways to reduce payment processing costs.
The RBA is also introducing measures intended to reduce merchant card payment costs, including lower interchange fee caps and greater transparency around payment fees.
This could be particularly relevant for small businesses, which the RBA says tend to pay card acceptance costs closer to existing caps.
What Should Your Business Do Now?
If your business currently applies card surcharges, there are several things worth reviewing before 1 October 2026.
1. Review Your Current Card Fees
Look at your payment processing statements and identify exactly what your business is paying to accept card payments.
Don’t just look at the surcharge you charge customers.
Understand the underlying merchant service fees, transaction fees and other payment costs.
2. Review Your Pricing
Consider whether your current prices still make sense once card surcharges are removed.
You may need to review the margins on your products or services and determine whether your pricing needs to change.
Any pricing changes should be considered carefully rather than simply adding your current surcharge percentage to every price.
3. Speak With Your Payment Provider
Your payment service provider should be able to explain how the changes will affect your terminals and payment systems.
The RBA says many large payment service providers intend to remove surcharge functionality from their terminals around 1 October 2026.
Ask your provider:
- What will happen to our surcharge settings?
- What fees will we pay after 1 October?
- Are our merchant fees changing?
- Are there cheaper payment plans available?
- Will our terminals require an update?
- Are there any changes to our reporting or statements?
4. Check Your Website and Point-of-Sale Material
If your business currently advertises a card surcharge, remember to update your:
- Website
- Online checkout
- Menus
- Price lists
- Invoices
- Customer terms and conditions
- Signage
- Point-of-sale systems
You don’t want customers seeing outdated information after the new rules take effect.
5. Consider Your Cash Flow
If your business has historically collected card surcharges from customers, removing them will change the amount customers pay and potentially change your business’s cash flow.
This is a good opportunity to revisit your cash flow forecast and understand the effect of any pricing changes.
Can Businesses Offer a Discount for Other Payment Methods?
Businesses can still consider using discounts to encourage customers to choose particular payment methods.
The RBA has specifically identified discounts as an alternative way for businesses to influence customers’ payment choices.
However, businesses should make sure any discount or pricing structure complies with applicable consumer and pricing requirements.
What About Existing Invoices?
One important point for businesses that invoice customers is that the payment date matters.
If you issue an invoice before 1 October 2026 but the customer makes the card payment on or after 1 October, the new rules may mean you cannot apply a card surcharge to that payment.
The RBA recommends businesses check with their payment service provider because some providers may disable surcharge functionality from 1 October 2026.
This could be particularly important for businesses with longer payment terms or large outstanding invoices.
The Change Is More Than Just Removing a Surcharge
For many businesses, the removal of card surcharges is an opportunity to take a broader look at how they accept payments.
Rather than simply asking:
“What surcharge should we charge?”
business owners should be asking:
“What does it actually cost us to accept payments, and are we getting a competitive deal?”
The RBA is introducing greater transparency around card payment fees, which should make it easier for businesses to compare payment providers and understand what they are being charged.
What Should You Do Before October?
If your business currently charges card surcharges, now is a good time to:
- Review your payment processing costs
- Speak with your payment provider
- Review your pricing
- Update your cash flow forecast
- Check your payment systems
- Review your website and customer-facing information
- Consider how the changes could affect your margins
The change takes effect on 1 October 2026, so businesses should not leave their review until the last minute.
Need Help Reviewing the Impact on Your Business?
Changes to payment costs can have a flow-on effect on pricing, margins and cash flow.
At Tas Hawk, we help businesses understand their numbers and make informed financial decisions.
If you’re unsure how the removal of card surcharges could affect your business, speak with your accountant or financial adviser before making significant changes to your pricing structure.
Planning ahead now can help make the transition smoother when the new rules take effect on 1 October 2026.