The Reserve Bank of Australia (RBA) is pushing to take card surcharges off the table as early as October 2026, in a move that could impact small businesses that currently pass the fees on to customers.

The announcement follows a review by the RBA of merchant card payment costs and is part of a shakeup aimed to increase transparency around surcharge and interchange fees. The decision follows extensive consultation with the public and stakeholders.

Bye-bye surcharges

Under the RBA’s plan, surcharges will be eliminated on debit, credit and prepaid cards across the EFTPOS, Mastercard and Visa network from October 1, 2026, with the RBA claiming the existing system is not fit for purpose.

“Surcharging is no longer achieving its intended purpose,” the RBA said in its Conclusions Paper, claiming surcharges are often unclear and difficult for consumers to navigate.

The RBA suggests that folding payment costs into overall pricing would improve transparency.

Lower fees for businesses

The RBA has also set its sights on interchange fees: that’s the charges businesses pay when customers tap or swipe their cards. The RBA says that by eliminating surcharges, small business owners should end up with lower costs, as they tend to pay closer to the current caps. The RBA also plans to introduce capped charges on foreign card payment fees from April 2027 to further improve transparency.

Card networks and payment providers will also now be required to publish their fees, giving business owners better oversight into what they are paying.

The RBA hopes these measures will make it easier for business owners to compare products and providers and shop around for the best deal.

Small business advocates concerned by changes

Not everyone is convinced that the change is good for business. The Council of Small Business Organisations Australia (COSBOA) warns that removing surcharges before fee reductions flow through could put extra pressure on small business margins. OOSBOA chair Matthew Addison said this sequence of events will be critical.

“If you ban surcharging without guaranteeing lower fees, small businesses have no choice but to absorb the cost and that will ultimately be reflected in prices.”

Addison added that while lower fees and transparency are welcome, they need to be delivered in practice.

“Lower fees are only meaningful if small businesses actually see the benefit in what they’re charged.”

Bracing for impact

In the meantime, COSBOA suggests small businesses prepare for the impact. This includes reviewing prices to factor in new costs and comparing providers (especially as transparency improves).

A further round of consultation is also in the wings, with the RBA promising to tackle regulator areas such as buy now pay later, mobile wallets and eCommerce platforms in the coming months.

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