Card surcharge removal is coming from 1 October 2026, and Australian businesses will need to prepare for the change.

From this date, businesses will no longer be able to add a surcharge to many common card payments, including prepaid, debit and credit card payments made through eftpos, Mastercard, Visa and American Express.

For customers, this should mean fewer unexpected costs at the checkout.

For business owners, it means now is the time to understand what you currently charge, what your payment costs are and whether any pricing or system changes may be needed before the new rules begin.

What is card surcharge removal?

A card surcharge is an extra amount added when a customer pays by card.

For example, if a coffee is advertised at $5.00, but the business adds a card surcharge at the register, the customer might end up paying $5.10.

The surcharge is designed to help the business recover the cost of accepting that card payment.

At the moment, businesses can choose to apply a surcharge, as long as it does not exceed the cost of accepting that payment type.

What is changing from 1 October 2026?

From 1 October 2026, card networks will introduce “no surcharge” rules for many prepaid, debit and credit card payments.

This means businesses will not be able to add a separate surcharge when customers pay using eligible eftpos, Mastercard, Visa or American Express cards.

The change is part of a broader update to card payment rules in Australia. The Reserve Bank of Australia has said the current surcharging system has become complicated and confusing for both consumers and businesses.

Surcharges are not always clearly disclosed, and many customers do not see the final cost until they reach the point of payment.

Will card payment fees disappear?

No. This change does not mean card payment fees are going away.

Businesses will still have costs associated with accepting card payments. What is changing is the ability to pass those costs on as a separate surcharge for the affected card types.

This means business owners will need to decide how to manage those costs. For example, they may need to:

• absorb the cost as part of normal business expenses
• review product or service pricing
• compare payment providers
• update point-of-sale systems
• make sure staff understand the new rules

The right approach will depend on the business, its margins and how much it currently pays in merchant fees.

Are all payment types included?

Not necessarily.

The changes focus on eligible prepaid, debit and credit card payments through eftpos, Mastercard, Visa and American Express.

Other payment methods, such as buy now pay later services and some other electronic payment options, may be treated differently.

Because payment arrangements can vary between providers, businesses should check with their payment provider or merchant facility to understand exactly how the rules will apply to them.

How businesses can prepare for card surcharge removal

A few practical steps include:

• Review your most recent merchant statement so you understand what you are currently paying.
• Check whether your business currently applies card surcharges.
• Speak with your payment provider about what will change from 1 October 2026.
• Find out whether your point-of-sale system needs to be updated.
• Compare merchant fees to see whether there is a better option available.
• Review your pricing to decide whether card payment costs need to be factored in.
• Train your staff so they can explain any changes clearly to customers.

Getting this sorted early will help avoid last-minute changes and confusion at the checkout.

Need help reviewing the impact?

For many businesses, this change will not just be about removing a surcharge button from the payment terminal.

It may affect pricing, margins, systems and how payment costs are managed day to day.

If you are unsure whether your business currently applies surcharges, or you would like help understanding what this change could mean for your pricing and cashflow, get in touch with our team.