Ending card surcharges: What you need to know before 1 October 2026 & how Beyond payment services can help
The Reserve Bank of Australia (RBA) has confirmed that all surcharges on credit and debit card payments — across eftpos, Mastercard and Visa — will be banned from 1 October 2026.
This represents one of the most significant updates to Australia’s payments landscape in years and will have a direct impact on businesses and consumers which is why we have partnered with Beyond to help businesses offset rising merchant fees.
Why this matters
Australians pay an estimated $1.6 billion in card surcharges every year. At the same time, businesses collectively bear even higher card-acceptance costs behind the scenes. Under the new rules, total merchant payment costs are expected to fall by around $910 million per year, with small businesses likely to see the largest percentage savings.
For many businesses this will mean simpler pricing, fewer compliance headaches and potentially better margins — but it also means some preparation is needed.
What’s changing?
The RBA’s reform package has three key components:
- Surcharges banned
From 1 October 2026, businesses cannot add any surcharge — percentage or flat fee — for payments made using eftpos, Mastercard, Visa or related networks. Customers must see and pay one final price, whether they purchase online, at the counter, or via mobile payment.
- Lower interchange fees
Interchange fees (the wholesale fees charged between banks when a customer pays by card) will be reduced, with new caps for foreign-issued cards. This should directly lower the cost that a business needs to pay to accept card payments.
- Greater transparency
Banks, card schemes and payment providers must publish clearer information about fees and margins.
They must also demonstrate how reductions in wholesale fees are being passed through to retailers. This gives businesses more power to compare providers and negotiate.
These changes are supported by oversight from the Australian Competition and Consumer Commission (ACCC) and guidance from the Australian Small Business and Family Enterprise Ombudsman.
What your business should do now
- Review your merchant fees
Look at your recent statements and determine:
- How much you currently pay in card-acceptance fees; and
- Whether you have been relying on surcharges to offset part of those costs.
If surcharges are part of your pricing strategy, you may need to adjust prices to maintain margins, where commercially appropriate.
- Speak to your payment provider
With lower interchange fees coming and more transparency required, it’s a good time to negotiate:
- Better merchant service fees
- Updated pricing plans
- POS or terminal upgrades
Small businesses often pay closer to the current fee caps, so they stand to gain the most.
- Update your pricing and POS systems
You’ll need to remove:
- Surcharge signage
- Online checkout surcharges
- Automatic percentage add-ons
All displayed prices must become all-inclusive.
- Build changes into your cash flow
Lower merchant fees won’t appear immediately, but most businesses should see reduced costs flow through during the 2026–27 financial year. This is a good time to revisit budgets, especially for cafés, retailers, trades and service-based operators that have a high proportion of small card transactions.
- Watch customer behaviour
Businesses might find that the removal of surcharges encourages more customers to pay by card. Higher card usage is often positive for convenience and transaction speed, but keep an eye on total acceptance costs as patterns shift.
The broader commercial picture
This reform levels the playing field to some extent.
Businesses that never applied surcharges will simply benefit from lower underlying fees. Those that did add a surcharge will enjoy simpler operations, less admin and fewer compliance risks. Over time, the changes should encourage more competition among payment providers, potentially leading to better products and lower fees across the market.
There may be secondary adjustments (for example, banks reviewing rewards programs), but the combined effort of the RBA and ACCC aims to ensure that cost savings are passed through fairly and transparently.
The challenge from Beyond
Most businesses still have little visibility over what they’re actually paying in merchant fees, how their rates are structured, or whether their current payment setup is fit for what’s coming next.
That’s where Beyond comes in.
They work as payment advisors to businesses across Australia, helping owners and finance teams:
- Understand the true cost of acceptance
- Review and benchmark merchant fee structures
- Navigate upcoming regulatory changes
- Reduce unnecessary payment costs
- Future-proof their payment strategy
Importantly, this isn’t just about EFTPOS terminals. Payments now impact profitability, cash flow, customer experience, and operational efficiency more than ever before.
The businesses that act early will be in the strongest position when these reforms take effect.
If you’d like a no-obligation review of your current payment arrangements and how the proposed RBA changes may affect your business, the team at Beyond would be happy to help.
Because in the new payment’s environment, having the right advisor matters.
Final thoughts
With our new partnership with Beyond, they can help your business. This is ultimately a practical reform: fewer add-ons at the checkout, simpler pricing for customers, and lower complexity for businesses. Some businesses will see this as an opportunity to improve margins, streamline processes and enhance the customer experience.
We recommend reviewing your payment arrangements in the coming months. The team at Beyond can help analyse your current merchant fees, model the likely impact of the changes, and support with the implementing new systems.
If you’d like tailored advice on how the end of card surcharges affects your business, please reach out to Beyond — now is the ideal time to prepare.
If you would like to discuss any of the above measures please feel free to email your AHJ contact or enquiries@ahjackson.com or call (07) 3253 1500.
