Australia to ban card payment surcharges from 1 October

Australia is set to implement a ban on card payment surcharges starting 1 October. Under the new rules, businesses will be prohibited from adding surcharges to transactions made via eftpos, Mastercard, and Visa. The move follows a review by the Reserve Bank of Australia, which determined that surcharging no longer served its original purpose.

The ban covers in-store, online, and digital transactions, including mobile wallets. It applies to various card types, including personal, commercial, credit, debit, and pre-paid cards. While businesses can no longer pass card-specific processing costs to consumers as a line item, they are permitted to increase overall service fees, provided the increase is not discriminatory based on the payment method.

To assist with the transition, the Australian Payments Network (AusPayNet), in coordination with eftpos, Mastercard, and Visa, has launched a dedicated website to provide guidance. Businesses, including medical practices and service providers, are being urged to review their banking fees and pricing structures to prepare for the impact on their bottom lines.