Australians will no longer face debit and credit card surcharges from 1 October 2026, as Reserve Bank of Australia reforms change how card payments are priced.
The RBA says the reforms will end card payment surcharges on eftpos, Mastercard and Visa transactions, with other major payment networks also announcing plans to remove surcharges. The bank estimates consumers currently pay about $1.6bn a year in these charges.
What changes from 1 October?
From 1 October, merchants will no longer be able to add a card payment surcharge where the new no-surcharge rules apply. The changes cover credit, debit and prepaid cards on the designated networks.
The reforms also reduce interchange fee caps paid by businesses for domestic card transactions. For consumer credit cards, the maximum interchange fee will be 0.30{0931a9b6576c5d87fe846c236d3725957ace4ff7894c2ecd00b9029ccfe6a5f9} of the transaction value from 1 October.
The RBA says the changes are designed to make card payments simpler and more transparent for consumers and businesses.
What could happen to credit card rewards?
Credit card providers have been changing rewards programs and fees ahead of the reforms. Some cards have reduced points earning, removed travel benefits or increased annual fees and interest costs.
Consumer finance experts cited in reporting on the changes say cardholders should check notices from their providers and review whether their existing card still offers value for their circumstances.
Will prices rise?
Businesses will still have costs associated with accepting card payments. The RBA has estimated that removing surcharges could lead to a small one-off increase in advertised prices as some businesses absorb payment costs into their prices.
The RBA has also estimated that lower interchange fee limits will save businesses money, particularly smaller businesses that currently face higher card acceptance costs.
What should consumers do?
Consumers should check the terms, fees and rewards attached to their cards before making changes. The reforms do not remove every type of fee a business may charge: the RBA says the new rules concern surcharges added specifically because a customer pays by card.
Weekend surcharges, public holiday surcharges, booking fees and service fees are not covered by the removal of card payment surcharges.
For Australians with credit cards, the changes could also affect the value of rewards programs and sign-up offers, making it useful to compare the ongoing fees and benefits of a card rather than focusing only on introductory rewards.
Source: The Guardian
