Australia's reform abolishing card-payment surcharges for designated card networks will be implemented in phases

AT A GLANCE

RBA stated that multiple payment networks will abolish card-payment surcharges from 2026 October, with related fee and disclosure reforms implemented in phases.

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[Reserve Bank of Australia:October 1 to abolish card-payment surcharges for designated card networks]

The Reserve Bank of Australia (RBA) stated in the FAQs for its retail payments regulation conclusions document that, from October 1, 2026, abolishing card-payment surcharges for the designated card networks eftpos, Mastercard and Visa is in the public interest.RBA will, from that date, lift the prohibition on the above networks' “no-surcharge” rules. The relevant changes are based on the 2016 Standard No. 3 and amendments to the 2026 Standard on Merchant Pricing for Card Payment Costs and Surcharges. eftpos, Mastercard and Visa have each decided to introduce no-surcharge rules from that date, generally applying to their credit, debit and prepaid cards, including cards issued overseas. American Express, UnionPay and PayPal have also decided to abolish surcharges, but are not currently formally regulated by RBA. American Express and UnionPay will, in October 1, 2026, withdraw from their existing commitments with RBA, while PayPal's no-surcharge rule takes effect from October 5, 2026. The scope is limited to fees charged because a customer pays by card, and excludes weekend and public-holiday surcharges, booking fees and service fees. Merchants must comply with the new card-scheme rules unless an exception applies; businesses, non-profit organisations and business-to-business card payments do not receive a general exemption as a result. The reforms will be implemented in phases.October 1, 2026 will see lower interchange fee caps apply to domestic card transactions; from October 30, designated card networks and large acquirers must publish the required card-payment cost information on their websites.January 30, 2027 From, large acquirers must disclose how reductions in interchange fees are passed through to merchant service fees; from April 1, interchange fee caps will apply to overseas-issued card transactions acquired in Australia, and acquirers must also provide merchants with more detailed statements.RBA stated that businesses may still incorporate the cost of accepting card payments into overall pricing and may also offer discounts for particular payment methods.

Key points

The Reserve Bank of Australia (RBA) stated that, from October 1, 2026, abolishing card-payment surcharges for the designated card networks eftpos, Mastercard and Visa is in the public interest.
eftpos, Mastercard and Visa decided to introduce no-surcharge rules from October 1, 2026, generally applying to their credit, debit and prepaid cards, including cards issued overseas.
American Express and UnionPay will, in October 1, 2026, withdraw from their existing commitments with RBA, while PayPal's no-surcharge rule takes effect from October 5, 2026.
The reform applies only to fees charged because customers pay by card, and excludes weekend and public-holiday surcharges, booking fees and service fees.
October 1, 2026 will see lower interchange fee caps apply to domestic card transactions; from October 30, designated card networks and large acquirers must publish the required card-payment cost information.
January 30, 2027 From, large acquirers must disclose how reductions in interchange fees are passed through to merchant service fees; from April 1, interchange fee caps will apply to overseas-issued card transactions acquired in Australia.
RBA stated that businesses may still incorporate the cost of accepting card payments into overall pricing and may also offer discounts for particular payment methods.

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

A card-payment surcharge is a separate fee charged by a merchant because a customer chooses to pay by card. Under the arrangements described, the relevant card schemes will prohibit such separate charges, but merchants may still incorporate the cost of accepting card payments into the overall price of goods or services, and may offer discounts for certain payment methods. Other types of fees, including those for weekends, public holidays, bookings or services, are outside the scope of this reform.

Why it matters to readers

The rules will change the way charges are presented to Australian consumers at checkout and require card networks and large acquirers to disclose more information on payment costs. Lower interchange fee caps also concern how card-transaction costs are allocated among card networks, acquirers and merchants.

Consumers need to distinguish prohibited “card payment surcharges” from weekend fees, booking fees, or service fees that may still apply; merchants need to verify the rules, effective dates, and exceptions applicable to the card networks they use.

Risks and unknowns

The evidence comes from a Telegram channel's account of RBA documents, and does not provide RBA the full original documents for verification.
The text merely states “unless an exception applies,” without specifying the conditions for any exception.
American Express, UnionPay, and PayPal are currently not subject to RBA formal regulation, and the evidence does not elaborate on how their rules will be specifically enforced.

Australia's reform abolishing card-payment surcharges for designated card networks will be implemented in phases

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