The Reserve Bank has made changes to the way credit cards are charged.
What’s Changing
1. Card surcharges will be removed From 1 October 2026, businesses will no longer be allowed to add extra fees when customers pay with debit, prepaid, or credit cards across the major networks—eftpos, Mastercard and Visa. The RBA says surcharging has drifted far from its original purpose. Instead of encouraging cheaper payment methods, many businesses now apply a flat surcharge to all cards, and enforcement has become difficult. Removing surcharges should make pricing clearer and reduce frustration at the checkout.
2. Interchange fees will be lowered Interchange fees—paid by businesses when customers use their cards—will be capped at lower levels. Small businesses, which often pay the highest rates, are expected to benefit the most. A new cap for foreign‑issued cards will take effect on 1 April 2027.
3. Greater transparency across the payments chain The RBA will require clearer disclosure of fees charged by card networks and payment service providers. The goal is to help businesses compare options more easily and push providers to compete harder on price.
What Happens Next
Most reforms begin in late 2026, with more complex changes rolling out in 2027. The RBA will also launch a new consultation in mid‑2026 to consider whether additional regulation is needed for mobile wallets, buy‑now‑pay‑later services, three‑party card schemes, and major e‑commerce platforms.
These reforms signal a shift toward simpler, more competitive payments—something both businesses and consumers have been calling for.
For more information: - RBA Credit Card Payment Costs
