Card Surcharges Are Ending in Australia: What Businesses Need to Know
Australian businesses that accept card payments need to prepare for an important change.
From 1 October 2026, businesses will no longer be able to charge customers or clients an extra fee for paying by eftpos, Visa, Mastercard or American Express.
The change will affect retailers, restaurants, professional service providers, medical practices, law firms and many other Australian businesses.
What is a card surcharge?
A card surcharge is an additional fee charged when a customer pays by debit card, credit card or eftpos.
For example, if an invoice is $1,000 and the business charges a 1.5% card surcharge, the customer pays an additional $15.
Businesses can continue charging a card surcharge until 30 September 2026. However, the surcharge must not be more than the actual cost of accepting that type of card payment.
What changes from 1 October 2026?
From 1 October 2026, businesses cannot charge customers or clients a separate card surcharge for payments made using:
- eftpos cards
- Visa debit and credit cards
- Mastercard debit and credit cards
- American Express cards
- Prepaid cards operating through these networks
Businesses should ensure their EFTPOS machines and online payment systems stop adding these fees from that date.
Why are card surcharges being removed?
The Reserve Bank of Australia found that card surcharges had become confusing and difficult for customers to avoid.
Some customers only discovered the surcharge when they were ready to make payment. There were also concerns that some businesses were charging more than the actual cost of processing the card payment.
The new rules are intended to make prices clearer and help customers understand the total amount they must pay.
Will businesses still pay EFTPOS and merchant fees?
Yes.
Banks and EFTPOS providers will continue charging businesses for processing card payments.
The new rules do not remove merchant fees. They prevent businesses from passing those costs directly to customers as a separate card surcharge.
Businesses may need to absorb the cost or consider normal payment expenses when reviewing their overall prices.
Can a business rename the card surcharge?
A business should not attempt to rename a card surcharge as a processing fee, service fee or administration fee.
If the additional fee only applies because a customer paid by card, it may still be considered a card surcharge.
This may breach the business’s merchant agreement. It may also raise concerns under Australian consumer law if the fee or total price is misleading.
Genuine booking, delivery or service fees may still be permitted where they are separate from the customer’s chosen payment method. These fees must be clearly explained and properly displayed.
What happens if a business continues charging?
A business that continues charging card surcharges after 1 October 2026 may face:
- Customer complaints
- Requests for refunds
- Disputed card transactions
- Action from its bank or payment provider
- Suspension or cancellation of its EFTPOS facilities
- Consumer law concerns where the price or fee is misleading
The exact consequences will depend on the business’s merchant agreement and the circumstances of the charge.
What should businesses do now?
Australian businesses should begin preparing before 1 October 2026.
We recommend taking the following practical steps:
- Contact your bank or EFTPOS provider.
- Confirm whether the surcharge function will be removed automatically.
- Review your merchant fees and payment costs.
- Remove surcharge notices from your premises.
- Update your website, invoices and online payment links.
- Train staff not to manually add card fees.
- Review your general pricing if necessary.
- Consider offering direct bank transfer as another payment option.
This may also be a good opportunity to compare EFTPOS providers and negotiate lower merchant fees.
What does the change mean for customers?
Customers will no longer pay an additional fee simply because they use an eftpos, Visa, Mastercard or American Express card.
However, this does not necessarily mean that the general price of goods or services will decrease. Businesses may include normal operating and payment costs when setting their overall prices.
The main benefit for customers is greater certainty about the total price they will pay.
Need advice about your business obligations?
Clear pricing and payment terms are important for every Australian business.
Shawn Mendis Lawyers can assist businesses with reviewing their contracts, payment terms, customer notices and legal obligations.
Contact our friendly team to discuss how the card surcharge changes may affect your business.
Shawn Mendis Lawyers
Pakenham Office
Level 1, 198 Henry Road
Pakenham VIC 3810
This article provides general information only and is not legal or financial advice. You should obtain advice based on your individual circumstances.
