Overview
- The no-surcharge rules for eftpos, Visa and Mastercard took effect on Thursday, October 1, 2026, with American Express and UnionPay also stopping separate surcharges on that date and PayPal set to follow on October 5.
- Card networks and payment providers are responsible for enforcing the ban and have been required to disable surcharge functions on terminals, but enforcement is uneven and some unlawful or accidental surcharges are still being reported.
- Many small retailers, cafes and hospitality venues say they will either absorb processing costs or raise shelf and menu prices, and dozens of businesses with older terminals or limited guidance remain unprepared to comply.
- The Reserve Bank capped interchange fees — cutting the domestic credit‑card cap from 0.80% to 0.30% — and major banks have already cut rewards earn‑rates, trimmed perks and re‑priced cards to make up lost revenue.
- The RBA and government estimate around A$1.6 billion a year in consumer surcharge savings and A$910 million for businesses, but those sums can be redistributed through higher displayed prices and concentrated harm to low‑margin sectors such as cafes and restaurants.