When a customer taps their card, somebody still has to pay for it. Right now, many businesses pass that cost on through a card surcharge. From 1 October 2026, that option disappears for covered debit, prepaid and credit card payments. 

The processing cost, however, does not. 

So, where will that cost sit in your business? 

If you currently pass card processing costs on to customers, this is not just a change at the checkout. It could affect your pricing, margins, payment systems and the way you manage those costs across the business. 

The good news? You still have time to get ready. Here is what is changing and what I think you should be doing now. 

 

what is changing? 

 

The Reserve Bank of Australia [RBA] has completed its review of merchant card payment costs and surcharging. As a result, card networks will introduce ‘no surcharge’ rules from 1 October 2026. 

This means businesses will no longer be able to charge customers an additional fee because they choose to pay using a covered debit, prepaid or credit card through EFTPOS, Visa, Mastercard or American Express. 

Simple enough for customers. For businesses that currently surcharge, it creates a few decisions. 

The change does not apply to other types of charges, such as weekend or public holiday surcharges in hospitality, or genuine booking or service fees that apply regardless of the payment method used. 

Until 30 September 2026, the current rules continue to apply. If you surcharge before then, the amount cannot be more than your actual cost of accepting that payment type. 

 

 

why is it changing? 

 

Card surcharges were originally intended to encourage customers to choose lower-cost payment methods. But as cash use has fallen and card payments have become the norm, avoiding a surcharge has become harder. 

The RBA found that the current system had become complex for businesses, confusing for customers and difficult to enforce. In many cases, customers were not seeing the true cost of a purchase until they reached the payment screen. 

Removing card surcharges is intended to make pricing simpler and more transparent. 

But the cost of accepting card payments still has to sit somewhere. 

 

what does this mean for your business? 

 

If your business does not currently surcharge, there may be very little you need to change. It is still worth reviewing your merchant fees to make sure you are getting a competitive deal. 

If you do surcharge, the impact could be more significant. 

You will need to remove the surcharge from your payment systems and answer one important question: 

Do you absorb the cost or build it into your pricing? 

Before you decide, run the numbers. 

A surcharge of 1 or 2 per cent might look small on an individual transaction, but across a year it can add up to a meaningful cost. Funny how the small percentages have a habit of doing that. 

Before changing your prices, understand: 

  • how much your business currently pays in merchant and processing fees 
  • how much surcharge income you currently recover from customers 
  • which products, services or locations are most affected 
  • whether your current margins can absorb the difference 
  • how your prices compare with the market. 

The right answer will depend on your transaction volumes, average sale value, margins and how your customers prefer to pay. 

 

will your payment costs come down? 

 

Maybe. But do not bank on it. 

The surcharge changes are being introduced alongside reductions to the maximum interchange fees on domestic debit and consumer credit card transactions from 1 October 2026. These changes are intended to reduce payment costs, particularly for small businesses. 

Interchange is only one component of the total fee you pay to accept cards. So, do not assume your overall merchant costs will fall by the same amount—or that your provider will automatically put you on the best available deal. 

Use this change as a reason to review your statements, ask your provider what will happen to your fees and compare alternatives. More standardised fee information is also being introduced to make it easier for businesses to understand their costs and shop around. 

 

what should you do now? 

 

Start with these five steps: 

  1. Measure the impact
    Review the last 12 months of card processing fees and surcharge income. Work out the annual gap your business may need to absorb or recover through pricing. 
  2. Speak with your payment provider
    Confirm which transactions are affected, when your surcharge settings will change and whether your merchant fees will be reduced. 
  3. Review your pricing
    Model the effect on your margins before increasing prices. A blanket percentage increase may be simple, but it may not be the right answer across every product or service. 
  4. Update your systems and communications
    Remove card surcharge settings from terminals, invoices, online checkouts and accounting workflows. Update signage, websites, booking terms and customer communications so the price displayed is clear. 
  5. Check the result
    Monitor merchant fees, gross margin and customer behaviour after the change. Your first decision does not need to be your last one. 

 

can you just rename the fee? 

 

No. 

Calling a card surcharge a ‘service fee’ does not necessarily make it one. 

If a fee is only charged when a customer uses a particular payment method, it may still be treated as a payment surcharge. Any separate booking or service fee should reflect what it actually is, apply consistently and be disclosed clearly in line with Australian Consumer Law. 

 

now, decide where the cost sits 

 

The end of card surcharges will be welcome news for many customers. But for businesses, the cost of accepting payments simply needs to be managed somewhere else. 

So, how much are card payments really costing your business? Can your current margins absorb that cost? And when did you last compare payment providers? 

A quick review now gives you time to make a considered pricing decision, update your systems and communicate clearly with customers before 1 October. 

Know what card payments cost you. Decide where that cost will sit. Update your systems. Then keep an eye on your margins. 

Because removing the surcharge does not remove the cost. 

 

we’re here to help 

If you have any questions or need a hand understanding how these changes could affect your pricing, margins or cash flow, you can contact me or give the team a buzz on 1300 BDEPOT. 

 

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