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Good news: Those annoying card fees that tack a 1.5% fee onto your bill at checkout are on the way out. The Reserve Bank of Australia has moved to scrap card surcharges entirely, following a review that found the system no longer works as intended. If the changes go through, those extra fees on debit, credit and prepaid payments will disappear from October 2026, saving Australians billions in surcharge fees each year. And it’s about time.
Surcharges were introduced more than two decades ago, when cash was still a real alternative and card payments cost more to process. So by charging extra for cards, people might choose cheaper options instead, like cash. But that’s not how Australians pay anymore. Cash has dropped off significantly, cards are now the default, and tapping has become second nature. Plenty of businesses still charge the same surcharge regardless. So, what used to shape how we pay is now just another fee on top.
So What’s Actually Changing?
The RBA is reshaping how card payments work in Australia, with three key moves from the Payments System Board:
1. Surcharges are being removed entirely
No more extra fees for paying by card across eftpos, Visa and Mastercard. By updating this out-of-date system, the RBA aims to make payments simpler and more transparent, while also increasing competition among providers.
2. Fees for businesses are being pushed down
Caps on interchange fees will be lowered, reducing the cost of accepting card payments. Smaller businesses are expected to benefit the most, particularly when accepting both domestic and overseas cards.
3. More transparency across payment providers
Clearer fee structures should make it easier for businesses to compare options and avoid getting locked into expensive deals. Yes, even the businesses charging those surcharges had extra fees to pay.
That said, don’t expect everything to suddenly get cheaper. For most businesses, even with hundreds of millions in surcharge savings across the system, those costs don’t disappear. They’ll likely be built into prices instead. Which might sound frustrating
Most of these changes will take effect from 1 October 2026, including the removal of surcharges. More complex updates, like caps on foreign card fees, will follow on 1 April 2027. But that’s not all.
The RBA is already lining up the next phase, with plans to launch a public consultation in mid-2026 looking at parts of the payments system that weren’t covered in this review. That includes mobile wallets, three-party card networks, buy-now, pay-later services, and e-commerce platforms.
In other words, there’s still plenty to clean up around how Australians pay. And while the RBA might be playing catch-up, they’re heading in the right direction.
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