Australia bans card payment surcharges on major networks

Australia's new ban on card payment surcharges has taken effect for eftpos, Mastercard and Visa transactions. The change applies to payments made in-store, online and through cards stored in mobile wallets.

Businesses can no longer add a surcharge when a customer pays by card using those networks. The ban covers debit and credit card payments across common retail settings, removing a fee often added at the point of sale or checkout.

Consumers may still encounter other extra charges, including weekend and public holiday surcharges. Those fees are separate from card payment surcharges and remain permitted under the new framework.

The distinction is particularly relevant over the Labour Day long weekend in the Australian Capital Territory, New South Wales and South Australia. Shoppers in those states and territories may still see public holiday surcharges from venues and retailers despite the new card surcharge ban.

The Reserve Bank is monitoring how the industry is implementing the rule and working with stakeholders to improve awareness among merchants. In the early phase, the focus appears to be not only on compliance but also on helping businesses understand which charges are no longer allowed and which remain lawful.

Industry guidance

AusPayNet, which represents Australia's payments industry, has worked with the designated card networks to provide information on the change. The guidance is aimed at consumers, businesses and payment service providers seeking clarity on how the new rule applies.

The networks covered are eftpos, Mastercard and Visa. Merchants are not permitted to impose an additional fee solely because a customer uses one of those payment methods.

That leaves a narrower set of charges outside the scope of the ban. Public holiday and weekend surcharges, commonly used by hospitality businesses and some other merchants to reflect higher trading costs on those days, are still allowed.

Andy White, Chief Executive Officer of AusPayNet, highlighted that distinction as the rule came into force.

"From tomorrow, 1 October 2026, new no-surcharge rules for card payments in Australia officially come into effect. The new rules mean that businesses will no longer be permitted to add a card surcharge on eftpos, Mastercard or Visa payments made in-store, online or via cards stored in mobile wallets. It is important to note that consumers may see public holiday surcharges with the Labour Day holiday being observed in the Australian Capital Territory, New South Wales and South Australia on Monday, 5 October. The new rules relate specifically to card payment surcharges that are added because a consumer chooses to pay by card, and do not apply to weekend or public holiday surcharges which are permitted."

What changes

For consumers, the practical effect is that the displayed price for many card purchases should now be the final card price for covered payment methods, with no extra fee added at payment. For merchants, the change requires payment systems and checkout processes to remove card-specific surcharges for the affected networks across physical and digital channels.

The inclusion of cards stored in mobile wallets means the rule extends beyond traditional plastic cards to digital versions used on smartphones and other devices. That broadens the ban's reach, as mobile wallet transactions have become a standard payment option for many consumers.

Implementation may still cause short-term confusion, especially where customers see a surcharge over a public holiday weekend and assume it breaches the new rule. The distinction set out by the payments industry and the central bank is that the ban targets charges linked specifically to card use, rather than broader surcharges tied to the day of trade.

The change marks a significant adjustment in how retailers and service providers present prices at checkout. It also places greater emphasis on clear communication at the point of sale so customers understand whether any added fee relates to the timing of the purchase rather than the payment method.

The Reserve Bank has confirmed it is watching the industry's rollout of the new settings while working with stakeholders to raise merchant awareness.