Australia to implement nationwide card surcharge ban on October 1

A nationwide ban on card payment surcharges in Australia is set to take effect on October 1. Following a review by the Reserve Bank of Australia, merchants will no longer be permitted to impose extra fees on debit, credit, EFTPOS, or prepaid card transactions.

Industry experts and business groups, including the Australian Restaurant and Cafe Association, have noted that many small businesses may feel unprepared for the transition. To manage the loss of surcharge revenue, retailers face a choice: absorb the transaction costs—which can range from approximately 0.43% for EFTPOS to over 1.3% for certain credit cards—or increase general advertised prices to cover the expense.

While the Reserve Bank of Australia estimates the change could unlock $1.6 billion in annual savings for shoppers, some analysts warn that increased base prices could offset these benefits. Additionally, some businesses may choose to offer discounts for cash payments to encourage its use, though the decline in physical bank branches may present logistical challenges for small business owners.