03/07/2026
Earlier this year the Reserve Bank announced it will lift the prohibition on the existing ‘no-surcharge’ rules for card networks, in an effort to reduce surcharge complexity, reduce costs for businesses and increase surcharge transparency. The changes will be introduced as part of the Reserve Bank’s regulatory powers under the existing Reserve Bank Act 1959 (Cth) and will allow card networks to impose surcharge bans on merchants. As part of these regulatory changes, the Reserve Bank will reduce interchange fees and surcharges for businesses.
Here’s what you need to know about the changes set to commence on 1 October 2026:
- Businesses cannot avoid the ban by disguising the surcharge as another fee (ie booking fees).
- The surcharge ban applies to Eftpos, Mastercard and Visa transactions but it does not apply to BPAY, PayPal, Diners Club, America Express or taxi fares (regardless of payment type).
- Eftpos, Mastercard and Visa will be required to publish their fees to help businesses track and compare provider fees.
- The card networks will be responsible for imposing the bans, however the Reserve Bank have indicate they may recommend the introduction of legislation to effectively introduce the ban.
Although the ACCC is currently responsible for enforcing the current ban on excessive surcharges, breaches of the new surcharge ban will not be enforced or penalised by the ACCC. Instead, the card networks will be responsible for enforcement and contractual consequences may apply as a result of non-compliance, potentially resulting in terminating the merchant’s acceptance of the relevant cards.
Businesses that currently charge credit card surcharges should start planning to implement the changes. These changes are regulatory in nature and include a transitional period with full implementation expected to occur by 1 April 2027.
For more information or advice, contact our expert team at Griffin Legal.
