Australia's Card Surcharge Changes: What Businesses Need to Know

From 1 October 2026, the major card networks are applying no-surcharge rules to most card payments accepted in Australia. At the same time, regulators are reducing interchange fee caps, which affects part of the cost that sits behind every card transaction. The combined effect is that businesses have less ability to itemise a surcharge on customer receipts, even as the underlying cost of accepting card payments continues to exist.

This is a significant shift for any business that currently relies on surcharging to offset payment processing costs, and it is worth reviewing your current merchant fees well before the change takes effect.

Surcharging rules are set by the card networks and by Australian regulators, and the detail varies by card type and payment method. In general terms, the reforms are designed to limit or remove surcharging on most card transactions from 1 October 2026. Businesses should confirm the exact rules that apply to their card acceptance arrangements with their payment provider, and seek their own legal or accounting advice if they are unsure how the changes apply to them.

Yes. Removing surcharging does not remove merchant fees. Payment providers still charge businesses to process card transactions — typically a percentage of the transaction value, sometimes combined with a fixed per-transaction fee, gateway fees or terminal costs. Without a surcharge to recover some or all of that cost from the customer, the full cost of accepting card payments sits with the business.

Each network sets its own surcharging rules, and those rules can differ between debit and credit products. As the reforms take effect, businesses that currently apply different surcharge rates across EFTPOS, Visa and Mastercard transactions should expect those distinctions to narrow or disappear for most transactions. Confirm the specific treatment of each card type with your payment provider ahead of the change.

Some businesses choose to build the average cost of payment acceptance into their headline prices, rather than itemising it as a separate surcharge. This is a commercial pricing decision, and its suitability depends on your margins, competitive position and customer expectations. TruPay does not provide pricing, legal or tax advice — speak with your accountant or adviser about what is right for your business.

Rather than surcharging more expensive payment methods, some businesses are exploring the reverse approach: offering a discount or incentive for customers who pay using a lower-cost method, such as an account-to-account payment. This keeps headline pricing consistent while encouraging the payment methods that cost the business less to accept. As with any pricing structure, consider your own compliance obligations before introducing one.

With surcharging no longer available as a way to recover card acceptance costs on most transactions, a growing number of businesses are looking at ways to reduce those costs directly. That includes reviewing current provider pricing, understanding where fees come from, and evaluating newer account-to-account payment options such as PayTo and Pay by Bank, which are designed around Australia's real-time payment infrastructure rather than the card networks.

Use the calculator below to see what your current card acceptance costs your business each month and year.

When do the card surcharge changes take effect?

The changes are scheduled to take effect from 1 October 2026, when new no-surcharge rules from the major card networks apply to most card transactions in Australia.

Will merchant fees disappear along with surcharges?

No. Removing the ability to surcharge does not remove the underlying cost of accepting card payments. Businesses still pay their provider for processing card transactions.

Can I just raise my prices instead?

Some businesses build payment costs into their pricing rather than itemising them as a surcharge. Any pricing decision should be considered alongside your own commercial and legal advice.

Is there a lower-cost way to accept payments?

Account-to-account payment methods, such as those built on PayTo, are being explored by providers like TruPay as a potentially lower-cost way to accept payments compared with traditional card processing.

• Reserve Bank of Australia, Review of Merchant Card Payment Costs and Surcharging
• Eftpos, Mastercard and Visa public announcements on scheme surcharging rules and interchange fee caps for the Australian market
• Australian Competition & Consumer Commission (ACCC), guidance on surcharging rules for merchants

This page summarises publicly announced changes and is provided for general information only. It is not legal, tax or financial advice. Confirm how these changes apply to your business with your payment provider and your own advisers.