The new card payment rules

The rules for card surcharging in Australia changed on 1 October 2026. This page sets them out in one place, as at 5 October 2026, with a numbered source for each fact. It is general information, not legal advice. Check your own merchant agreement, and get advice if you are unsure how the rules apply to your business.

What changed on 1 October

On 1 October 2026 a variation to the Reserve Bank of Australia's Standard No. 3 came into force: the Payment Systems (Regulation) Standards (Merchant Card Payment Costs and Surcharging) Variation 2026, Register ID F2026L00434, registered on 14 April 2026. [1]

The variation repealed clauses 3, 4 and 5 of the standard. [1] The old clause 3 read: “Neither the Rules of a Scheme nor any participant in a Scheme shall prohibit or deter: (a) a Merchant from recovering, by charging a Surcharge in respect of a Card Transaction in a Scheme at any time, an amount that does not exceed the Permitted Surcharge…” [2]

In other words, the RBA removed the clause that stopped card networks from prohibiting surcharges. eftpos, Mastercard and Visa then each introduced no-surcharge rules from 1 October 2026. [3] The RBA did not itself prohibit surcharging: the networks' rules do, and they reach you through your merchant agreement. [3, 7]

Visa's published rule, for example: “From 1 October 2026, under Visa rules, a business must not add any amount over the advertised or normal price to a transaction, unless applicable law or regulation expressly permits the business to surcharge.” [4]

Which cards and networks

Who decided, and from when, as at 5 October 2026:

Card networks and providers that no longer allow surcharging
Network or providerFromHow
eftpos, Mastercard, Visa1 Oct 2026Each network's own no-surcharge rule, after the RBA variation. [3]
American Express1 Oct 2026Voluntary, through its card acceptance terms. [10, 3]
UnionPay, JCB1 Oct 2026Voluntary no-surcharge position. [5]
PayPal5 Oct 2026PayPal's amended terms: “From 5 October 2026, you must not impose a surcharge or any other fee for accepting PayPal as a payment method”. [11] PayPal Pay in 4 is likely covered by PayPal's rule; check with PayPal.
AfterpaySet by contractAfterpay's Australian merchant terms, as published by Square, prohibit surcharging, with a narrow in-store carve-out. [12]
KlarnaSet by contractKlarna's Australian merchant terms (clause 5.7) prohibit fees on customers for paying with Klarna. [13]
ZipSet by contractZip's terms as published via Stripe prohibit it; check your Zip agreement. [14]

The ACCC's pages name Visa, Mastercard, American Express and eftpos. [7]

Buy now pay later (BNPL) sits outside the RBA's card rules, so the provider's contract decides. [15] The RBA's Review of Payments System Regulation covers BNPL, American Express and mobile wallets: its Issues Paper came out on 25 June 2026, it plans to publish its priorities by the end of 2026, and further consultation is due by mid-2027. [15, 16]

Who it covers

  • Credit, debit and prepaid cards, including commercial and corporate cards. [5]
  • In-store, online and mobile wallet payments. [5]
  • Australian and foreign-issued cards: the rule applies “regardless of whether the card was issued in Australia or overseas”. [6]
  • Business-to-business payments: “a business cannot apply a surcharge simply because the payer is a business”. [5]
  • Invoices issued before 1 October and paid after it: the RBA says surcharging “may no longer be available”. [3]
  • Recurring payments, subscriptions and invoices that cover periods either side of 1 October: remove the surcharge from payments taken on or after 1 October 2026. [17]
  • Not-for-profit organisations: they are not exempt. [5]

What you can still do

  • Build your card costs into your prices. [7]
  • Offer a discount for paying a particular way, such as cash or PayID. The full price must be the displayed price, the discounted price must not be shown alone or more prominently, and the discount must be disclosed before the customer chooses how to pay. [7]
  • Hospitality businesses can keep weekend and public holiday surcharges. [7] They must apply to every customer, however they pay. [5] On a menu, the words “A surcharge of [x%] applies on [day/s]” must be at least as prominent as the most prominent price. [9]
  • Charge genuine fees that have nothing to do with paying by card, such as booking, platform or service fees. [7]
  • Minimum card spend: the ACCC has published no position. [7, 8] Square's guidance (not law) is that you can still decline card payments below a set amount, but “a fee that applies only to card payments below a threshold is a card surcharge, which can't continue”. [18]

A separate law, the cash mandate, applies to supermarkets and fuel retailers: they must accept cash for in-person payments of $500 or less between 7am and 9pm. [19] The codes started on 1 January 2026, with penalties from 1 July 2026. [19] Some businesses with turnover under $10 million are exempt, unless they use a registered trademark. [20]

What you can't do

  • Add a surcharge for paying by card. [7]
  • Describe a card surcharge as another kind of fee. The ACCC says a business that does this “may be engaging in misleading conduct”. [8]
  • Mislead customers about the reason for a price rise. [7]

The ACCC's example: a hairdresser charging $60 who builds a 1% card cost into the price would charge $60.60. If the salon raises the price to $65 because energy and labour costs also rose, it must not tell customers the rise is due to the surcharging change. [7]

Who enforces it, and accidental surcharges

The ACCC: “The card networks or payment service providers are responsible for enforcing these rules, not the ACCC.” [8] NAB, for example, says that continuing to surcharge would breach your merchant agreement, and “Fines may also apply.” [21]

The ACCC enforces the Australian Consumer Law, which covers misleading pricing and price displays. [7] The old rules on excessive surcharges, which the ACCC enforced, ended on 1 October 2026. [7]

cardsurcharge.com.au is an initiative of eftpos, Mastercard and Visa, coordinated by Australian Payments Network. [5]

If you surcharge by accident, refund the surcharge to the customer as soon as possible. [17] The networks tell customers to ask the business for that refund. [6]

Taxis and other regulated surcharges

The networks' rules give way only where a law or regulation expressly permits surcharging. [4, 5] The example they give is taxi fares regulated by states and territories. [5]

New South Wales and Queensland cap card surcharges on taxi fares at 5%, including GST. [22, 23] The RBA: “Surcharging in the taxi industry remains the responsibility of state and territory regulators.” [3]

Wholesale cost changes

Interchange is the wholesale fee paid to the bank that issued the card. The RBA caps it. Caps exclude GST. [24, 25]

Interchange caps before and after the reform
Card typeBefore 1 Oct 2026From 1 Oct 2026
Domestic debit and prepaid10c (fixed fee) or 0.20% (value-based)8.0c (fixed fee) or 0.160% (value-based) [25, 26]
Debit weighted-average benchmark8c8.0c, kept [25]
Consumer credit0.80% cap; 0.50% weighted-average benchmark0.300%; credit benchmark removed [24, 26]
Commercial credit0.80%0.800%, unchanged [24]
Foreign-issued cardsNot cappedNot capped until 1 Apr 2027, then 1.000% for card-present and card-not-present [24, 25, 26]
Scheme fees (charged by the networks)Not cappedNot capped [27]

The debit cap has two limbs: 8.0c where the network sets a fixed fee, or 0.160% where it sets a fee by value. It is not “whichever is lower”. [25]

In 2024/25 acquirers paid scheme fees of 10.5 basis points on domestic transactions and 158.2 basis points on cross-border transactions. [27]

The RBA estimates the cut in wholesale costs at about $910 million a year across all merchants. That figure includes the foreign-card cap from 1 April 2027 and depends on providers passing the saving on. [28, 31]

What gets published and when

  • Large acquirers (more than $10 billion a year of eftpos, Mastercard and Visa volume from merchants they serve directly) must publish their average merchant service fee, as a percentage, every quarter, within 30 days of the quarter end, on their own websites. The RBA republishes it. [29, 31]
  • The first figures are due by 30 October 2026 and cover July to September 2026, the quarter before the reform. [29]
  • The figures are split by annual card turnover: all direct merchants, up to $1 million, and $1 million to $10 million. There is no band for larger merchants. [30]
  • Six transaction types: domestic card-present debit and credit, domestic card-not-present debit and credit, foreign debit and foreign credit. They are not split by network. [30]
  • CommBank and NAB have said they will publish. There is no official list of large acquirers. [33, 21]
  • The networks publish quarterly aggregate interchange, scheme fee and rebate figures from 30 October 2026. [32]
  • Large acquirers also publish a “Passthrough Rate”: first by 30 January 2027 (covering October to December 2026), then by 30 April, 30 July and 30 October 2027. The acquirers publish it; it is not an RBA report. [29]
  • Standardised merchant statements start from 1 April 2027, and scheme fee roadmaps are due by 1 April 2027. [29, 31]
  • The RBA decided not to build a fee comparison tool. [32]

Myths

“A $5 coffee will go to $7.”

A 1.5% surcharge on $5 is 7.5c. The RBA expects the effect of rounding on inflation to be negligible. [31]

“Consumers save $1.6 billion a year.”

That is what consumers paid in surcharges in 2024/25, out of about $1.8 billion in total. [28] The RBA says most consumers will now pay similar amounts through the sticker price. [34]

“Small businesses save $910 million.”

The RBA's estimate covers all merchants, is a wholesale figure, depends on providers passing it on, and part of it only arrives with the foreign-card cap from 1 April 2027. [28, 31]

“Surcharging is now against the law, and the ACCC will fine you.”

The no-surcharge rule is a contract rule, set by the networks and enforced by them and payment providers. The ACCC polices misleading pricing. [3, 7]

“Interchange fell 62.5%, so my fees fall 62.5%.”

That is the consumer credit cap only, from 0.80% to 0.30%. [24] Our own model puts a typical merchant's interchange saving at about 0.05% to 0.07% of card turnover (our estimate), and a flat rate only falls if your provider cuts it.

“Weekend surcharges, cash discounts and card minimums have gone too.”

Hospitality weekend and public holiday surcharges, and discounts for paying by cash or PayID, are allowed if prices are displayed the way the ACCC requires. [7] On minimums, the ACCC has published no position; Square's guidance (not law) is that you can decline card payments below a set amount, but a fee only on card payments below a threshold is a card surcharge. [18]

“You can still surcharge PayPal or buy now pay later.”

Not PayPal, from 5 October 2026. [11] For BNPL, the provider's contract decides: Klarna's merchant terms prohibit it, and so do Afterpay's terms as published by Square and Zip's terms as published via Stripe. [12, 13, 14]

Sources

  1. Federal Register of Legislation, Payment Systems (Regulation) Standards (Merchant Card Payment Costs and Surcharging) Variation 2026 (F2026L00434), as made. https://www.legislation.gov.au/F2026L00434/asmade/2026-04-14/text/original/epub/OEBPS/document_1/document_1.html (Registered 14 April 2026; accessed 5 October 2026).
  2. Federal Register of Legislation, Standard No. 3 of 2016 (F2016L00838), compilation in force to 30 September 2026. https://www.legislation.gov.au/F2016L00838/2022-01-01/2022-01-01/text/original/epub/OEBPS/document_1/document_1.html (Accessed 5 October 2026).
  3. Reserve Bank of Australia, Removal of Payment Surcharges From 1 October 2026 (FAQs). https://www.rba.gov.au/payments-and-infrastructure/review-of-retail-payments-regulation/2026-03/conclusions-paper/faqs/ (Accessed 4 October 2026).
  4. Visa Australia, Surcharging information. https://www.visa.com.au/support/surcharging-info.html (Accessed 5 October 2026).
  5. eftpos, Mastercard and Visa (coordinated by Australian Payments Network), cardsurcharge.com.au: business FAQs. https://www.cardsurcharge.com.au/businesses (Accessed 4 October 2026).
  6. eftpos, Mastercard and Visa (coordinated by Australian Payments Network), cardsurcharge.com.au: consumer FAQs. https://www.cardsurcharge.com.au/consumers (Accessed 4 October 2026).
  7. ACCC, Card surcharges (business). https://www.accc.gov.au/business/pricing/card-surcharges (Updated 2 October 2026; accessed 5 October 2026).
  8. ACCC, Card surcharges (consumers). https://www.accc.gov.au/consumers/pricing/card-surcharges (Accessed 5 October 2026).
  9. ACCC, Price displays. https://www.accc.gov.au/business/pricing/price-displays (Updated 2 October 2026; accessed 4 October 2026).
  10. American Express, Australian merchant home page. https://www.americanexpress.com/au/merchant/index.html (Accessed 4 October 2026).
  11. PayPal Australia, Upcoming policy changes (amendment notice issued 5 August 2026, effective 5 October 2026). https://www.paypal.com/au/webapps/mpp/ua/upcoming-policies-full (Accessed 5 October 2026).
  12. Square, Afterpay Merchant Terms (Australia). https://squareup.com/au/en/legal/general/afterpay-merchant-terms (Effective 15 February 2025; accessed 4 October 2026).
  13. Klarna, General Terms and Conditions for Merchants, Australia and New Zealand, v24.11 (clause 5.7). https://www.klarna.com/au/legal/merchants-general-terms-and-conditions/ (Dated 24 February 2025; accessed 5 October 2026).
  14. Stripe, Zip Payment Terms (clause 1.1). https://stripe.com/legal/zip (Last updated 6 May 2024; accessed 5 October 2026).
  15. Reserve Bank of Australia, Review of Payments System Regulation, Issues Paper: Mobile Payments, Non-designated Card Networks and Buy Now Pay Later. https://www.rba.gov.au/payments-and-infrastructure/regulatory-reviews/review-of-payments-system-regulation-2026/2026-06/mobile-payments-non-designated-card-networks-buy-now-pay-later.html (25 June 2026).
  16. Reserve Bank of Australia, Media release mr-26-17: Review of Payments System Regulation. https://www.rba.gov.au/media-releases/2026/mr-26-17.html (25 June 2026).
  17. Westpac, Card payment surcharges. https://www.westpac.com.au/business-banking/merchants-and-payments/manage/agreement-fees-and-charges/cost-of-acceptance/ (Last modified 1 October 2026; accessed 4 October 2026).
  18. Square, Preparing your business for the end of card surcharging (help article 8680). https://squareup.com/help/au/en/article/8680-preparing-your-business-for-end-of-card-surcharging (Accessed 5 October 2026).
  19. ACCC, Cash acceptance industry codes. https://www.accc.gov.au/business/industry-codes/cash-acceptance-industry-codes (Updated 29 June 2026; accessed 4 October 2026).
  20. ACCC, Payment methods (business). https://www.accc.gov.au/business/selling-products-and-services/payment-methods (Accessed 5 October 2026).
  21. NAB, RBA surcharging changes. https://www.nab.com.au/business/payments-and-merchants/merchant-support-centre/rba-surcharging-changes (Accessed 4 October 2026).
  22. NSW Government, Passenger Transport (Taxi Fares) Order (sl-2025-549). https://legislation.nsw.gov.au/view/pdf/asmade/sl-2025-549 (Accessed 4 October 2026).
  23. Queensland Department of Transport and Main Roads, Maximum payment surcharge. https://www.tmr.qld.gov.au/business-industry/taxi-and-limousine/industry-information/industry-regulations/maximum-payment-surcharge (Updated 1 July 2026; accessed 4 October 2026).
  24. Reserve Bank of Australia, Conclusions Paper: Standard No. 1 of 2016 (credit card interchange), as varied. https://www.rba.gov.au/payments-and-infrastructure/review-of-retail-payments-regulation/2026-03/conclusions-paper/standard-no-1-of-2016.html (31 March 2026).
  25. Reserve Bank of Australia, Conclusions Paper: Standard No. 2 of 2016 (debit and prepaid card interchange), as varied. https://www.rba.gov.au/payments-and-infrastructure/review-of-retail-payments-regulation/2026-03/conclusions-paper/standard-no-2-of-2016.html (31 March 2026).
  26. Reserve Bank of Australia, Conclusions Paper: Interchange Fees (chapter 3). https://www.rba.gov.au/payments-and-infrastructure/review-of-retail-payments-regulation/2026-03/conclusions-paper/interchange-fees.html (31 March 2026).
  27. Reserve Bank of Australia, Conclusions Paper: Scheme Fees (chapter 4). https://www.rba.gov.au/payments-and-infrastructure/review-of-retail-payments-regulation/2026-03/conclusions-paper/scheme-fees.html (31 March 2026).
  28. Reserve Bank of Australia, Conclusions Paper: Executive Summary. https://www.rba.gov.au/payments-and-infrastructure/review-of-retail-payments-regulation/2026-03/conclusions-paper/executive-summary.html (31 March 2026).
  29. Reserve Bank of Australia, Conclusions Paper: Standard No. 3 of 2016 (transparency), as varied. https://www.rba.gov.au/payments-and-infrastructure/review-of-retail-payments-regulation/2026-03/conclusions-paper/standard-no-3-of-2016.html (31 March 2026).
  30. Reserve Bank of Australia, Conclusions Paper: Appendix C. https://www.rba.gov.au/payments-and-infrastructure/review-of-retail-payments-regulation/2026-03/conclusions-paper/appendix-c.html (31 March 2026).
  31. Reserve Bank of Australia, Conclusions Paper: Impact and Implementation (chapter 8). https://www.rba.gov.au/payments-and-infrastructure/review-of-retail-payments-regulation/2026-03/conclusions-paper/impact-and-implementation.html (31 March 2026).
  32. Reserve Bank of Australia, Conclusions Paper: Transparency of Wholesale Fees (chapter 5). https://www.rba.gov.au/payments-and-infrastructure/review-of-retail-payments-regulation/2026-03/conclusions-paper/transparency-of-wholesale-fees.html (31 March 2026).
  33. CommBank, RBA card surcharge reforms. https://www.commbank.com.au/business/payments/rba-card-surcharge-reforms.html (Updated 1 October 2026; accessed 4 October 2026).
  34. Reserve Bank of Australia, Conclusions Paper: Non-technical Summary. https://www.rba.gov.au/payments-and-infrastructure/review-of-retail-payments-regulation/2026-03/non-tech-summary.html (31 March 2026).

General information only, not legal or financial advice. The rules and providers' terms can change; this page was last updated 5 October 2026.