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Update: card surcharging is being removed
From 1 October 2026, businesses in Australia can no longer add a surcharge when a customer pays by card. This applies to eftpos, Mastercard, Visa and American Express.
If you currently surcharge, you’ll need to stop, and decide whether to absorb the cost or build it into your prices. If you don’t surcharge, very little changes for you.
This article explains what’s changing, what you can still charge for, and what to do before 1 October.
What’s actually changing
Until 30 September 2026, businesses can surcharge card payments as long as the surcharge doesn’t exceed what it costs them to accept that card. From 1 October 2026, that stops.
The change reaches you indirectly: the Reserve Bank of Australia removed the rule that previously stopped the card networks from banning surcharges themselves, and eftpos, Mastercard, Visa and American Express have each decided to do exactly that. So the rule arrives through your payment provider’s terms, not from the RBA directly.
For more on the background to the decision, see the RBA is changing card surcharging: here’s what it means for you.
| Card network | Cards affected | Can you surcharge from 1 Oct 2026? |
|---|---|---|
| eftpos | Debit, prepaid | No |
| Mastercard | Credit, debit, prepaid | No |
| Visa | Credit, debit, prepaid | No |
| American Express | Credit | No |
What you can still charge
The change applies only to surcharges added because someone paid by card. Other types of fees and surcharges remain unaffected:
- Weekend and public holiday service charges: common in hospitality, and still allowed
- Booking fees, service fees, delivery fees: provided they’re genuinely for those things
- Minimum card spends: setting a minimum transaction amount isn’t a surcharge. Charging a fee on payments below that amount is a different thing, and from 1 October you can’t add one to a card payment
- Non-card payment methods: the RBA doesn’t currently regulate surcharges on these, though check with your provider and follow ACCC pricing-display rules
Two things to be careful about, both of which the ACCC has warned on directly:
- Don’t rename a card surcharge. Calling it a “processing fee” or “card handling fee” doesn’t change what it is. The ACCC has said businesses that try to avoid the no-surcharge rules by describing a card surcharge as some other kind of fee “may be engaging in misleading conduct.”
- Don’t blame a broader price rise on the surcharging change. You’re free to raise your prices, and free to recover card costs through them. But if you’re also passing on higher energy, rent or wage costs, you can’t tell customers the increase is because of the surcharging change. The ACCC’s own example: a salon lifting a $60 haircut to $65 for several reasons must not attribute that rise solely to card surcharging.
Are there any exemptions?
Mostly no.
- Not-for-profits aren’t exempt unless a card network’s rules or a law provides an exemption
- Business-to-business card payments aren’t exempt either, on the same basis
- Whether any exemption exists is a decision for each card network, not the RBA
- Taxis are a separate case: surcharging there stays with state and territory regulators
- Businesses with regulated prices may not be able to adjust them (the RBA has notified price regulators so they can take the change into account)
One timing trap worth knowing: if you invoice a customer before 1 October but they pay on or after that date, you may not be able to surcharge that payment. The rule follows the payment date, not the invoice date. Some providers, including Square, will switch surcharging off from 1 October. If you invoice on terms that straddle the date, check with your provider now.
What this means for your costs
If you’ve been surcharging, the cost of accepting cards doesn’t disappear on 1 October. It just stops being something you can pass on at the till, so the rate you pay matters more than it did.
The RBA is also lowering the caps on interchange, which is one of the wholesale fees inside the cost of accepting a card. It’s only one part of the picture though. The scheme fees set by the card networks and your provider’s margin aren’t capped, and what you actually pay comes down to your agreement with your provider. We’ve broken down how those pieces fit together in Credit card processing fees and rates explained.
What to do before 1 October
If you currently surcharge:
- Decide how you’ll handle the cost. Absorb it, or build it into your prices. Most customers prefer one all-inclusive price, and the RBA found 85% of small businesses already work that way.
- Turn surcharging off in your POS and payment systems. If you use Square’s card surcharge setting, Square turns it off for you on 1 October and there’s nothing you need to do. If you’ve set your surcharge up another way, as a service charge, a tax or automatic tipping, Square can’t switch that off for you, so you’ll need to remove it yourself before you take a payment on 1 October. If you don’t use Square, ask your provider what changes and when.
- Update everything customer-facing. Menus, signage, websites, apps, price lists, invoice templates, terminal prompts. Remove surcharge notices.
- Review your payment plan. You’re losing the ability to pass card costs on, so what you pay matters more than it did.
- Check your invoicing. If payments may land after 1 October, confirm with your provider how that’s handled.
If you don’t surcharge, there’s nothing you need to do.
Until 30 September 2026, the current rules still apply: you can surcharge, but not more than what accepting that card actually costs you. The ACCC continues to enforce that until the change takes effect.
Where to get more detail
- Square’s guide to the RBA surcharging changes
- RBA FAQs on the removal of payment surcharges
- ACCC guidance on card surcharges
Last reviewed September 2026. This article is for general information and isn’t legal advice. For advice specific to your business, speak to your payment provider or a professional.
