Australia to ban card surcharges starting 1 October

New payment reforms in Australia, set to take effect on 1 October, will prohibit businesses from applying surcharges to customers paying via eftpos, Visa, or Mastercard. According to the Reserve Bank of Australia, this change aims to ensure the price displayed on menus or in aisles is the final price paid at checkout.

To help offset the loss of surcharge revenue, which is estimated to impact businesses by approximately $660 million, the reforms will introduce lower domestic interchange fee caps. For personal credit cards, the cap will decrease from 0.8 per cent to 0.3 per cent.

Alongside these regulatory changes, credit card providers are overhauling their rewards programs. Consumers may face reductions in reward points, the removal of fee waivers, and increases in annual fees and interest rates. Some specific cardholders, such as those with CBA Smart Cards, will see the removal of certain perks like Qantas points access. Experts advise customers to review their card terms closely as the timing of these adjustments varies by provider.