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welcome to r j s & associates
From 1 October 2026, Australian businesses will no longer be able to add surcharges for many card payments.
This is a major change for businesses that currently charge customers extra for paying by card. It may affect pricing, cash flow, point-of-sale systems, online checkout settings and customer communication.
The good news is that merchant card fees are also expected to fall. The catch is that business owners need to review their numbers now, so they know whether lower fees will fully offset the loss of surcharge income.
Card Surcharge Ban
If your business currently adds a card surcharge, now is the time to review your merchant fees, pricing and systems before the rules change.
Change 1
No card surcharges
Change 2
Lower merchant costs
Change 3
Clearer fee reporting
From 1 October 2026, businesses will no longer be able to add a surcharge when customers pay using designated card networks such as eftpos, Mastercard and Visa.
This means no extra percentage surcharge, flat card fee or separate checkout add-on for card payments.
Customers should see one final price whether they pay in store, online or through a mobile payment method.
RJS note: Businesses can still apply current surcharge rules until 1 October 2026. From that date, pricing and checkout processes should be updated to remove card surcharge add-ons.
The Reserve Bank of Australia has found that surcharging has become complex for both customers and businesses.
The reform is designed to:
$1.6B
estimated annual card surcharges paid by Australians
$910M
expected annual reduction in merchant payment costs
1 price
one final checkout price for customers
Businesses will no longer be able to add card payment surcharges for applicable debit and credit card payments. This includes percentage-based fees and flat transaction add-ons.
The RBA is reducing some interchange fees, which should lower the card-acceptance costs paid by businesses. The actual savings will depend on your provider, transaction mix and current pricing plan.
Payment providers will need to publish clearer fee information. This should make it easier for businesses to compare rates, question high costs and negotiate with providers.
The impact will depend on whether your business currently applies card surcharges.
If you do not currently apply surcharges
You may benefit from lower underlying merchant costs without needing to change customer-facing prices. This could improve margins if the savings flow through.
If you currently apply surcharges
You will lose surcharge income from 1 October 2026. You may need to review pricing, margins and cash flow to make sure the business remains profitable.
A business currently processes $100,000 per month in card payments and adds an average 1.5% surcharge.
That means surcharge income is approximately $1,500 per month.
Once surcharges end, the business needs to know whether reduced merchant fees will cover that lost income. If lower fees only save $700 per month, the remaining gap may need to be managed through pricing, cost control or increased sales volume.
Important: Do not assume lower merchant fees will fully replace lost surcharge income. Check your own merchant statements and model the impact.
| Timing | What To Do | Why It Matters |
|---|---|---|
| Now | Review merchant statements | Know your true card payment costs and surcharge income. |
| By August | Speak to your payment provider | Negotiate fees, compare providers and assess pricing plans. |
| By September | Update pricing and systems | Remove card surcharge settings, signage and checkout add-ons. |
| Before October | Build changes into cash flow | Understand whether margins, budgets or pricing need to change. |
Before the ban takes effect, business owners should review:
Action Checklist
Businesses that currently surcharge should check and remove:
Staff should also be briefed so they can explain the change clearly to customers.
The change is not just a compliance issue. It is also a pricing and cash flow issue.
For businesses operating on tight margins, even a small difference between lost surcharge income and reduced merchant fees can affect profit.
Early planning gives you time to:
If your business accepts card payments, this reform is worth reviewing before it takes effect.
RJS can help you assess the cash flow and margin impact, review your current merchant fee costs and prepare for the change.
Business Payment Review
We can help you review your merchant costs, pricing and cash flow before card surcharges end from 1 October 2026.
Speak With RJSThis article is published by R J Sanderson and Associates Pty Ltd ABN 71 060 299 783. This article contains general information only and is not intended to represent specific personal advice (Accounting, taxation, financial or credit). No individual personal circumstances have been taken into consideration for the preparation of this material. It is recommended that you obtain your own personal professional advice before making any financial or business decision.
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Accounting, taxation, business advisory and consulting services are offered through RJ Sanderson & Associates Pty Ltd ABN 71 060 299 783. Credit services are offered through a professional referral service with RJS Loan Solutions Pty Ltd ABN 25 123 033 116, Australian Credit Licence No. 393942. Wealth management, financial services, and insurance services are offered through a professional referral service with RJS Wealth Management Pty Ltd ABN 24 156 207 126, a corporate authorised representative (No. 438158) of Modoras Pty Ltd. Modoras Pty Ltd ABN 86 068 034 908, Australian Financial Services and Credit Licence No. 233209 is located at Level 3, 50-56 Sanders St, Upper Mt Gravatt Q 4122