Australia rolls back card surcharge, but businesses remain concerned
The new payment rule is intended to protect consumers, while small businesses fear they will have to build the costs into their prices.
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Australian businesses have been barred from charging a surcharge on payments made with Visa, Mastercard and eftpos since 1 October; American Express has voluntarily taken the same step. Following protests from small businesses, the government has also decided temporarily to cover the cost of credit card payments to the tax office.
The change follows a review by the Reserve Bank of Australia, which concluded that surcharges for card payments had become increasingly complicated for consumers and businesses. Card networks may adjust their rules so that retailers can no longer pass the surcharge on to customers separately.
The measure applies to credit cards, debit cards and prepaid cards on the designated networks. Australia’s competition regulator, the ACCC, says businesses must clearly display the total price in advance. A surcharge that arises solely because a customer pays by card may no longer be added on top of that price.
The scheme does not mean that all additional costs will disappear. According to the Australian government, surcharges for weekends, public holidays and bookings, among others, remain outside the new card rule. Retailers can also adjust their general prices or offer a discount for cash payments, provided they comply with consumer rules.
For small businesses, that shift is precisely the problem. They can no longer pass payment-processing costs directly on to card users and must decide whether to absorb the costs, raise prices for everyone or encourage customers to pay in cash. Initial reports from the business community point to concerns about margins, but there are still no reliable nationwide figures on price changes since 1 October.
A separate dispute arose at the Australian Taxation Office, the federal tax authority. The agency wanted to end credit card payments from late November because the government did not want to cover the associated costs for taxpayers on a permanent basis. Following pressure from small businesses, the government has now promised to pay those costs temporarily and postpone the introduction until the end of the financial year.
Australia’s approach is relevant beyond the country because it highlights a familiar policy dilemma: a ban on surcharges prevents an unpleasant surprise for consumers, but does not make the underlying payment infrastructure free. The Reserve Bank sets the rules for card networks, while the ACCC oversees how prices are presented to consumers. It is still too early to determine whether the reform will mainly lead to lower consumer prices or distribute costs more broadly among all customers.
One story, several perspectives
What is established
- Australia has banned card surcharges from 1 October 2026.
- The government is temporarily covering the costs of credit card payments to the tax office.
- The effects on general consumer prices have not yet been established.
Left
Arguments Consumers should see one clear price upfront and should not pay extra because they use an ordinary payment card.
Values Purchasing power, transparency and protecting consumers with little bargaining power.
Consequences The measure may reduce hidden surcharges, even if businesses later incorporate some of their costs into general prices.
Centre
Arguments A ban can work if card networks and regulators monitor the transition properly and small businesses are given time to adapt their pricing models.
Values Practical implementation, balance between consumers and businesses, and periodic evaluation.
Consequences An evaluation may show whether the rule needs to be adjusted if costs are mainly shifted rather than reduced.
Right
Arguments Businesses should retain the freedom to pass on costs arising from a specific payment method directly.
Values Business freedom, cost allocation and limited government intervention.
Consequences On this view, a ban could lead to higher base prices, reduced card acceptance or additional pressure on small businesses.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The rules and the temporary government measure have been confirmed by Australian government sources and ABC News. The text clearly distinguishes between established regulation and as-yet-unproven effects on prices and margins.
- confirmed Since 1 October 2026, Australian businesses have been prohibited from charging a card surcharge on Visa, Mastercard and eftpos. — Confirmed by the Reserve Bank of Australia and the ACCC. source
- confirmed American Express has also abolished the surcharge. — Australian government information states that American Express removed the surcharge from the same date. source
- confirmed The Australian government is temporarily covering the costs of credit card payments to the tax office. — ABC News describes the temporary relief and the postponement of the measure at the ATO. source
- confirmed Weekend, public holiday and booking surcharges are outside the new card rule. — These exceptions are set out in the government information on the new rules. source
- confirmed There are still no reliable nationwide figures on price changes since 1 October. — The public sources consulted report businesses’ experiences and concerns, but no nationwide impact assessment after implementation. source
Editor's note
The start date, scope and temporary relief for tax payments have been confirmed. The effect on retail prices and profit margins has not yet been measured nationwide.Sources
- Labor reverses credit card surcharge call after backlash, but businesses are still angry — ABC News
- Frequently Asked Questions – Removal of Card Payment Surcharges From 1 October 2026 — Reserve Bank of Australia
- Card surcharges — Australian Competition and Consumer Commission
- New card payment surcharge rules now apply — Australian Government
- Card surcharge ban to leave some shops spruiking cash, swallowing fees, raising prices — ABC News
More on this in Dutch media
- NU.nl — „australië kaartbetalingen”
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- Trouw — „australië kaartbetalingen”