Card Surcharges Are Banned: What You Can Still Do
Card surcharges on eftpos, Mastercard, Visa and American Express payments have been banned since 1 October 2026. Here's what that covers, what it doesn't, and what to check in your business now.
The deadline has passed, so the question has changed. It's no longer "what do I need to do before 1 October?" It's "is anything still adding a surcharge, and what do my card payments cost me now?"
We covered the headline change in our earlier post. This one covers what's still allowed, the catches that trip people up, and the part of this reform that could lower your costs.
What Is Banned
A card surcharge is an extra fee added because a customer pays by card. From 1 October 2026 you can't add one to eftpos, Mastercard, Visa or American Express payments.
The Reserve Bank removed its rule that stopped card networks from banning surcharging. eftpos, Mastercard and Visa then introduced their own no-surcharge rules, and American Express made the same call, as set out in the Reserve Bank's FAQs. So the ban reaches your business through the card network rules and your payment provider.
What You Can Still Charge
- Weekend and public holiday surcharges, booking fees and service fees. The changes don't apply to these. They still need to be clearly disclosed before the customer books, orders or buys, for example "A 10% public holiday surcharge applies today."
- Your provider's own fees. Terminal rental and transaction fees are what you pay your provider. They aren't surcharges.
- Discounts for another payment method. A discount for cash or PayID is allowed, as long as it's clearly displayed before the customer buys and they can see which methods qualify and how much they save.
- Higher prices across the board. Card costs can sit in your pricing. The customer should see the same price whether they pay by cash, debit or credit.
See the Reserve Bank's FAQs for what the ban covers, and ASBFEO's card surcharging ban guide for how to disclose surcharges and discounts.
The Catches
Business-to-business payments aren't exempt unless a card network's rules say so.
There's no blanket exemption. That includes not-for-profits. Any exemption is a decision for each card network.
Renaming the surcharge doesn't work. A "card handling fee" that only applies when someone pays by card is a surcharge by another name. We explained why in our earlier post.
The invoice and business-to-business points come from the Reserve Bank's FAQs.
The Part That Should Help Your Costs
Removing surcharges doesn't remove card costs. But the Reserve Bank also lowered the interchange caps from 1 October 2026:
- Domestic consumer credit cards: capped at 0.3% of the transaction value.
- Domestic debit and prepaid cards: capped at 8 cents per transaction or 0.16%.
- Domestic commercial credit cards: the cap stays at 0.8%.
Interchange is only one part of what your provider charges you. It's a cap on what banks charge each other, not a promise about your bill. Whether your fees fall depends on your provider and your plan. The Reserve Bank's advice is to check you're on the right plan and shop around. The caps are set out in its Conclusions Paper.
What It Means for Your Books
If you were collecting surcharges, that income stops, and the fees you pay your provider become a straight business cost. Tell your bookkeeper if you've changed provider or pricing so your merchant fee coding and reconciliations keep matching.
Check This Week
- Look at a recent receipt or invoice. Is there still a card surcharge line?
- Check your terminal, point of sale, online store, booking system, invoice templates, website pricing, signage and terms and conditions.
- Ask your provider for your latest statement, and whether the lower interchange caps have flowed through.
- Decide whether to absorb the cost, adjust your prices, or offer a clearly disclosed discount for cash or PayID.
- Watch for scam messages posing as your provider. Use contact details from their official website or app, never an unexpected link.
- Tell your bookkeeper what changed.
So What Does This Mean for You?
The surcharge is gone, but the cost of taking cards isn't. The businesses that come out ahead will be the ones that check their fees, price with the cost built in, and ask their provider what the lower caps mean for them.
Want a Hand Working Out What Card Payments Cost You Now?
Let's look at your fees and your pricing together.
Talk to the Diverse Team