Australia card surcharge ban prompts business preparations

Australian businesses are preparing for a ban on card surcharges scheduled to take effect on October 1. The regulation will cover various payment methods, including eftpos, Visa, Mastercard, American Express, JCB, and UnionPay.

Research from the Reserve Bank of Australia indicated that 16 per cent of companies were still charging for debit card purchases as of March 2026. To mitigate the impact of losing surcharge revenue, legal experts suggest businesses conduct full-scale reviews of all payment points, including online checkouts, booking platforms, and invoices. Companies may need to absorb costs, adjust base prices, or renegotiate fees with third-party processors.

In response to the upcoming changes, the Commonwealth Bank of Australia (CBA) announced it will reduce its merchant service fee for in-store payments from 1.1% to 0.99% starting October 1. CBA stated this reduction is intended to help small businesses manage costs as surcharging ends.

The Australian Competition and Consumer Commission (ACCC) will enforce consumer laws to ensure businesses do not disguise surcharges as other fees. While increasing base prices is generally lawful, experts advise that businesses must communicate changes plainly and avoid misleading customers.