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4 clusters · 14 sources · 47 days · First seen · Last updated

Australian credit-card surcharge ban

Overview

In late July 2026, the Reserve Bank of Australia (RBA) announced that, from 1 October 2026, surcharges on credit and debit card transactions will be prohibited. RBA Governor Michele Bullock stated that “surcharging no longer works as intended” due to complexity and lack of disclosure. The ban is expected to cut banks’ surcharge-related revenue by approximately AUD 660 million annually by lowering caps on inter-charge fees. Currently, consumers pay roughly AUD 1.6 billion annually in surcharges, with some airlines charging as much as AUD 66 for international bookings.

The ban applies to payments made via EFTPOS, Mastercard, and Visa networks, covering in-store, online, and digital transactions including mobile wallets. It encompasses personal, commercial, credit, debit, and prepaid cards. While American Express, JCB, and UnionPay are not mandated by the RBA standards, American Express has voluntarily elected to end surcharging on the same date. The reforms also include lowering domestic interchange fee caps, with further transparency and foreign card interchange caps scheduled for April 2027.

As the deadline approaches, the Australian Payments Network (AusPayNet), in coordination with eftpos, Mastercard, and Visa, has launched a dedicated website to guide businesses through the transition. While businesses cannot pass card-specific processing costs to consumers as a line item, they are permitted to increase overall service fees if the increase is not discriminatory based on the payment method.

Following the announcement, Australian banks began adjusting reward programmes. ANZ reduced sign-up points on its Qantas Black and Platinum cards, raised minimum spend thresholds, and removed cashback incentives. Travel agents have warned the ban may impact premium-card perks, while the Council of Small Business Organisations Australia (COSBOA) expressed concern that banning surcharges before the benefits of lower interchange fees are certain could inadvertently shift financial burdens onto small businesses.

Entities

Visa · Mastercard · Reserve Bank of Australia · ANZ (Australia and New Zealand Banking Group) · eftpos

Timeline

  1. 2 days ago

    [BUSINESS] 4 sources
    Australia to ban card payment surcharges from 1 October

    From 1 October, Australian businesses will be banned from applying surcharges to eftpos, Mastercard, and Visa transactions, following a Reserve Bank of Australia review.

  2. 23 days ago

    [BUSINESS] 2 sources
    Australia to ban card surcharges on major networks from October 2026

    From 1 October 2026, Australian vendors will be unable to surcharge payments made via EFTPOS, Visa, and Mastercard, as part of RBA reforms aimed at reducing merchant costs.

  3. about 1 month ago

    [BUSINESS] 2 sources
    ANZ reduces Qantas credit‑card sign‑up points and raises spend thresholds in Australia

    ANZ has slashed Qantas credit‑card sign‑up points, raised spend thresholds and removed cash‑back offers, reflecting a wider Australian banking trend of reduced reward perks ahead of the October 1 surcharge ban.

  4. about 2 months ago

    [BUSINESS] 8 sources
    Reserve Bank of Australia surcharge ban set to reshape credit‑card fees and travel‑agent commissions

    From 1 Oct 2026 the RBA will ban credit‑card surcharges, cutting banks’ revenue by AUD 660 m, ending high fees and prompting travel agents to reconsider card payments and rewards.

Sources

archynewsy.com · archyworldys.com · australianmusic.asn.au · brisbanetimes.com.au · c-store.com.au · dynamicbusiness.com · fintechnews.au · foto.com.mx · medicalrepublic.com.au · pymnts.com · smh.com.au · theage.com.au · waToday.com.au · wwnsw.com.au

This summary has been updated 2 times: see revision history