Is your business ready for Australia's card surcharge ban?

Card payment surcharges are ending in Australia.

Learn what the new rules mean for your business and how to prepare before 1 October 2026.

From 1 October 2026, businesses across Australia will no longer be able to apply a separate surcharge to payments made using eftpos, Visa, Mastercard or American Express cards.

The change follows the Reserve Bank of Australia’s Review of Merchant Card Payment Costs and Surcharging. The reforms are designed to simplify card payments, improve price transparency and increase competition between payment service providers.

For utility providers and other organisations that currently pass card processing costs on to customers, now is the time to review pricing, billing processes and customer communications.

Why are card payment surcharges ending?

Card surcharging was introduced more than 20 years ago to encourage customers to choose lower-cost payment methods. However, the way Australians pay has changed significantly. Card payments have become the preferred option for many consumers, while cash use has declined. The RBA found that the existing rules were no longer achieving their intended purpose. Surcharges had become increasingly difficult for customers to avoid, were not always clearly disclosed and could make it harder to understand the total price of a product or service.

Removing card surcharges is intended to:

• provide customers with clearer upfront pricing;
• simplify payment acceptance for businesses;
• reduce unexpected fees at the point of payment;
• encourage businesses to compare payment providers; and
• increase competition across the payments industry.

Which payment methods are affected?

From 1 October 2026, eftpos, Mastercard and Visa will introduce rules preventing businesses from applying surcharges to card payments. The changes will cover:

• eftpos debit and prepaid cards;
• Visa credit, debit and prepaid cards; and
• Mastercard credit, debit and prepaid cards.

American Express has also announced that it will remove card payment surcharging from the same date, although the RBA does not formally regulate it in the same way as the designated card networks.

Will businesses still pay card processing fees?

Yes. Businesses will continue to incur costs when accepting card payments. Depending on the business and its payment provider, these costs may include:

• transaction processing fees;
• merchant service fees;
• payment gateway fees;
• terminal rental;
• card network fees; and
• other payment service charges.

The key difference is that businesses may no longer be able to pass these costs directly to customers through a separate card surcharge. Businesses that currently recover their payment costs through surcharging will need to decide how those costs will be managed after the new rules take effect. This may include absorbing the costs, negotiating a better payment processing arrangement or incorporating the costs into general pricing.

Can businesses offer discounts for other payment methods?

Yes. Businesses can continue to offer discounts to customers who use preferred or lower-cost payment methods.

For example, a business may choose to offer an incentive for customers who pay by:

• direct debit;
• bank transfer; or
• another approved lower-cost payment method.

Businesses should ensure that any discounts, fees and advertised prices are presented clearly and comply with relevant pricing laws and guidance.

What happens to invoices issued before 1 October 2026?

The date the customer makes the card payment may be more important than the date the invoice was issued.

Where an invoice is issued before 1 October 2026 but the customer pays by card on, or after that date, a card surcharge may no longer be available.

Businesses should speak with their payment service provider to understand how the change will be implemented. Some providers may automatically disable card-surcharge functionality from 1 October 2026.

Are any businesses exempt?

Businesses, including not-for-profit organisations, will not automatically be exempt from the removal of card surcharging. Any exemption would need to be permitted under the relevant card network’s rules or provided through legislation or regulation. Card payments made between businesses are also not automatically excluded from the changes. Businesses that accept commercial or business-to-business card payments should confirm how their payment provider intends to apply the new rules.

What should businesses do before October 2026?

Businesses should begin reviewing their payment arrangements well before the changes take effect.

👉🏼 Review your current payment costs

Identify how much your organisation pays to accept card transactions, including merchant fees, gateway charges and payment provider costs. It may also be helpful to review the percentage of customers who pay by card and the amount of surcharge revenue currently collected.

👉🏼 Speak with your payment provider

Ask your payment provider:

• when surcharge functionality will be removed;
• whether any system changes will be required;
• how existing scheduled or recurring card payments will be treated;
• whether its merchant pricing will change; and
• whether lower-cost payment plans are available.

👉🏼 Review your pricing strategy

Businesses that currently rely on surcharge revenue should determine how payment processing costs will be managed in the future. This may involve updating general prices, reviewing regulated tariffs or charges, absorbing some costs, or encouraging customers to use lower-cost payment methods.

Businesses with regulated pricing may need to speak with the appropriate regulator or industry body about how payment costs can be recovered. The RBA has advised governments and price regulators of the upcoming changes.

👉🏼 Update customer communications

Review all customer-facing content that refers to card surcharges, including:

• invoices and statements;
• payment pages;
• customer portals;
• direct debit and card payment forms;
• websites and FAQs;
• correspondence templates;
• terms and conditions; and
• automated email or SMS notifications.

Any outdated surcharge wording should be removed or updated before the new rules take effect.

👉🏼 Review recurring payments

Businesses should confirm how recurring card payments will operate after 1 October 2026. This is particularly important for utility providers and subscription-based businesses that automatically process customer payments and currently add a separate card fee.

Will payment processing costs decrease?

As part of the wider reform package, the RBA is also lowering interchange fee caps for domestic card transactions. The changes to domestic interchange fees will take effect on 1 October 2026, alongside the removal of card surcharging.

Additional reforms, including interchange caps for certain foreign-issued cards and new merchant-statement transparency requirements, are scheduled to take effect from 1 April 2027. These reforms are intended to lower card acceptance costs, particularly for smaller businesses, and make it easier for merchants to compare payment providers.

However, businesses should not assume that all savings will automatically be passed on. Reviewing merchant statements and comparing providers will remain important.

What do the changes mean for utility providers?

Utility providers commonly offer customers several ways to pay, including direct debit, bank transfer and card payments. Where card processing fees are currently passed on as a separate surcharge, providers will need to review how those charges are configured and communicated. Utility providers should consider:

• whether card surcharges are applied to one-off or recurring payments;
• how payment fees appear on invoices and receipts;
• whether automated correspondence refers to card fees;
• whether payment costs are included in regulated or contracted pricing;
• how payment gateway settings will change; and
• whether customers should be encouraged to move to direct debit or another payment option.

Preparing early can reduce customer confusion and help ensure billing and payment processes continue operating smoothly after the new rules begin.

How Utilmate customers can prepare

Utilmate customers who currently apply card surcharges should review their payment arrangements and begin planning for the transition. This may include working with Utilmate, payment providers and internal finance or compliance teams to:

• identify where surcharges are currently configured;
• review customer-facing payment information;
• assess the impact on billing and revenue;
• update payment-related templates and processes; and
• communicate any changes to customers before 1 October 2026.

Early preparation will help minimise disruption and provide customers with clear, accurate information about their payment options.

Prepare now for the card surcharge changes

The removal of card payment surcharges represents a significant change for Australian businesses. Although payment processing costs will continue, customers should benefit from simpler and more transparent pricing. Businesses will need to determine how these costs are managed once separate card surcharges are no longer available.

Reviewing payment fees, system configurations, pricing and customer communications now will help ensure your organisation is ready for 1 October 2026.

Published on Tuesday, June 30, 2026