Australia · Consumer protection, Payments
Australia Bans Card Payment Surcharges from October 2026
From 1 October 2026, businesses can no longer impose surcharges on covered Visa, Mastercard, American Express and eftpos card payments, while other fees unrelated to the payment method remain subject to existing rules.
What changed.
Australia’s Card Surcharge Ban: What Businesses Need to Change
Australia’s card surcharge ban took effect on 1 October 2026. Businesses can no longer add covered surcharges when customers pay using Visa, Mastercard, American Express or eftpos credit, debit and prepaid cards. The change affects physical stores, online shops and service businesses that accept these payments. Businesses should review checkout settings, pricing displays and payment arrangements.
What changed?
The Australian Competition and Consumer Commission (ACCC) confirms that businesses can no longer charge a separate surcharge for covered card payments from 1 October 2026.
Previously, businesses could generally pass eligible card acceptance costs to customers through a surcharge, subject to the applicable rules. The new card network rules remove that option for the covered payment methods.
The change follows the Reserve Bank of Australia’s review of merchant card payment costs and surcharging. The RBA removed its prohibition on card networks introducing no-surcharge rules. The relevant card networks then introduced those rules from 1 October 2026.
The ban concerns fees charged because a customer chooses to pay by a covered card. It does not prohibit every surcharge or additional fee a business might charge.
Before and now
| Point | Before 1 October 2026 | From 1 October 2026 |
|---|---|---|
| Covered card surcharges | Permitted within applicable rules and limits | No separate surcharge for covered cards |
| Payment processing costs | Eligible costs could be passed on through a surcharge | Costs can be reflected in the overall price |
| Weekend and public holiday surcharges | Permitted where applicable rules allow | Can continue where permitted |
| Payment method discounts | Permitted subject to applicable pricing rules | Still permitted with clear disclosure |
The RBA also identifies PayPal and UnionPay as payment providers that decided to remove surcharging. Businesses should check the terms applying to the payment methods they accept.
Who does this affect?
The change affects Australian businesses that accept covered card payments. This includes retailers, online stores, restaurants, subscription services and other businesses that collect payments from customers.
It can also affect business-to-business transactions. The RBA states that business card payments are not automatically exempt from the new rules. Any exception depends on the relevant network rules or applicable law.
For SaaS companies and online marketplaces, the practical issue may be a checkout configuration that automatically adds a card fee. For physical retailers, the same issue may arise in a point-of-sale terminal or payment system.
Example scenario, not a real client: An online store adds a 1.5% surcharge when a customer pays by credit card. The store should remove that surcharge from its checkout for covered card payments. It may review its overall product prices to account for payment acceptance costs, provided it does not mislead customers about the price or the reasons for a price increase.
When does the change take effect?
The new card network rules took effect on 1 October 2026.
Businesses should not assume that an invoice issued before this date allows a surcharge on a card payment made afterwards. The RBA says that a card payment made on or after 1 October may no longer be surcharged, even where the invoice was issued earlier.
The change does not automatically prohibit every additional charge. Weekend and public holiday surcharges, booking fees and service fees are outside the card surcharge change, although other pricing and consumer protection rules may apply.
What should a business do?
- Remove covered card surcharges. Check checkout pages, payment terminals and payment links for automatic card fees.
- Contact your payment provider. Confirm how its systems apply the new rules and whether any settings require manual changes.
- Review overall pricing. Consider how card acceptance costs should be reflected in product or service prices.
- Check price displays. Ensure customers can see the total price and are not misled about additional charges or price increases.
- Review payment method discounts. Discounts may remain available, but the full price and discount conditions should be displayed clearly.
Documents and systems that may need updating
| Document or system | Suggested action |
|---|---|
| Website checkout and pricing pages | Likely update |
| Point-of-sale and payment gateway settings | Likely update |
| Pricing schedules and fee lists | Likely update |
| Customer payment terms | Check only |
| Terms of Service | Check only |
| Refund Policy | Check only |
The main work may involve payment systems and customer-facing pricing rather than a full rewrite of legal documents.
What is still unclear?
The precise treatment of a payment depends on the relevant card network rules, merchant contract and payment provider arrangements. Businesses should confirm whether any specific exception applies before relying on it.
The surcharge ban does not prevent businesses from adjusting their overall prices to reflect payment acceptance costs. However, the ACCC warns that businesses must not mislead consumers about prices or the reasons for price increases.
Businesses should also distinguish card surcharges from other fees. A fee should not simply be relabelled to avoid the no-surcharge rules if it is still charged because the customer pays by card.
Frequently asked questions
Can Australian businesses still charge credit card fees?
Businesses can no longer impose covered card payment surcharges from 1 October 2026. They may reflect payment acceptance costs in their overall prices. They must also comply with applicable rules on total price displays and misleading conduct.
Does the surcharge ban apply to online businesses?
Yes. The change applies to covered card payments, including payments made through online checkouts. E-commerce businesses should check whether their payment gateway automatically adds a card surcharge and remove it where the new rules apply.
Can a business still charge a weekend surcharge?
The card surcharge change does not itself prohibit weekend or public holiday surcharges. Those charges remain subject to applicable rules. Hospitality businesses should check the relevant price display requirements and make sure customers are informed appropriately.
Can a business increase its prices to cover card processing costs?
Yes. Businesses can generally reflect card acceptance costs in their overall prices. They must not mislead customers about the price or the reasons for an increase. The ACCC gives specific guidance on communicating price changes.
Do the new rules apply to business-to-business payments?
The RBA states that business-to-business card payments are not automatically exempt. Merchants should check the applicable card network rules and their payment provider arrangements before assuming an exemption applies.
Businesses reviewing payment terms or online checkout arrangements can contact My Legal Pal to discuss the legal documents relevant to their operations.
Last reviewed: 23 October 2026
Does this apply to you?
Documents that may need updating.
Check these against the change.
- Website and checkout pricing Likely update
- Payment gateway and point-of-sale settings Likely update
- Customer-facing payment terms Likely update
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