From 1 October 2026, businesses can no longer add a surcharge to card payments. If your business currently oncharges card fees, you need to ensure surcharging is switched off across your payment and billing systems before the change takes effect.
For businesses that currently recover card costs through a surcharge, the change may also affect profit margins and may need to be addressed through pricing, payment processes or other operational adjustments.
ACTION REQUIRED BEFORE 1 OCTOBER 2026
Check every payment channel now and confirm that card surcharging will be switched off before the change takes effect.
From 1 October 2026, businesses across Australia can no longer add a surcharge to payments made using eftpos, Mastercard and Visa debit, prepaid and credit cards. American Express has also agreed to remove surcharging from the same date.
The change applies to surcharges added because a customer chooses to pay by card. It does not apply to charges unrelated to the payment method, such as weekend or public holiday surcharges, booking fees or service fees.
What your business needs to do before 1 October
If you currently apply card surcharges, you should act now to ensure they are no longer charged from 1 October.
- Check every payment channel. Review EFTPOS terminals, point-of-sale systems, online payment gateways, invoicing and billing software, practice management systems and integrated payment solutions.
- Confirm what your provider is doing. Some banks and payment providers may remove surcharging automatically, while other systems may require you to change the settings yourself.
- Update customer-facing information. Remove references to card surcharges from websites, invoices, pricing displays, receipts, signage and other customer communications.
- Test your systems. Complete a test transaction across each payment channel to confirm the surcharge has been removed.
- Brief your team. Make sure employees who process payments, issue invoices or answer customer questions understand the change.
Do not assume that updating one system will cover everything. Businesses using multiple terminals, payment platforms or software integrations should check each separately.
For businesses currently surcharging: consider the profit impact
Once you have addressed the immediate system changes, the next step is to understand the financial impact.
The ban stops you charging customers a separate card surcharge, but it does not remove the underlying cost of accepting card payments. Merchant service and processing fees may still apply to card transactions. If your business currently uses surcharges to recover these costs, they may sit with the business from 1 October.
A QUICK EXAMPLE
A business processing $1 million a year in card payments at an effective merchant fee of 1.5% incurs approximately $15,000 a year in card acceptance costs. If that cost was previously recovered through surcharges, the business will need to consider the effect of absorbing it from 1 October.
The actual impact will depend on your card turnover, customer payment mix, payment provider and fee structure. This is why it is important to calculate your own exposure rather than rely on a general industry rate.
What should you consider?
- Find your actual merchant rate. Review your latest merchant statement and calculate the effective rate you are paying across card transactions.
- Model the profit impact. Calculate what absorbing card fees could mean for your profit over a full financial year.
- Review pricing. Consider whether the cost can be absorbed or whether broader pricing adjustments may be required.
- Review payment processes. Look at whether changes to invoicing, payment timing or accepted payment methods could help manage the impact.
- Review your provider arrangements. Compare your current merchant fees and consider whether a different arrangement may be more suitable.
The offsetting changes
The removal of surcharging forms part of a broader RBA reform package. From 1 October, caps on certain interchange fees will be reduced. The reforms also introduce additional fee transparency measures intended to make it easier for businesses to understand and compare merchant costs.
These changes may help reduce card acceptance costs for some businesses. However, the effect will vary depending on the provider and merchant arrangement, so businesses should review their actual fees rather than assume the lower caps will fully offset the loss of surcharge revenue.
What this may mean for different businesses
- High card-volume and lower-margin businesses, including retail and hospitality businesses, may experience a more immediate margin impact.
- Professional and medical practices may process larger individual payments, so even a relatively small percentage fee can add up over a year.
- Online and invoice-based businesses should check for surcharges embedded in checkout platforms, invoicing tools or accounting software.
How Prosperity can help
The immediate priority is to ensure card surcharges are switched off across your systems from 1 October 2026.
Once that is addressed, we can help you calculate the potential cost to your business, understand the effect on profit and consider whether pricing, payment processes or other adjustments may be appropriate.
If your business currently applies card surcharges and you would like help understanding the impact, please contact your Prosperity adviser.