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Australian credit-card surcharge ban

Updated 2 times since CLSTR started tracking revisions of this situation.

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2026-08-20 05:46 UTC → 2026-09-10 06:37 UTC · added ~~removed~~

Australian ~~credit‑card~~ credit-card surcharge ban

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.~~ 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. ~~This reflects an industry shift toward higher spend requirements and delayed bonus payouts.~~ Travel agents have warned the ban may impact premium-card perks and commissions. Some agents, such as Justine Waddington of Encounter Travel, noted they may have to refuse credit card payments or require direct deposits, potentially raising prices. Meanwhile, 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.

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