The Reserve Bank of Australia (RBA) has completed its review of merchant card payment costs and surcharging. As a result, card networks including Visa, Mastercard, American Express and eftpos will introduce a ‘No Surcharge’ rule for card payments.
This will mean that businesses can no longer apply surcharges to prepaid, debit or credit card payments, even though merchant processing costs will still apply.
The RBA has also reduced interchange fee caps to help offset the loss of surcharge revenue. You can read the RBA’s ‘Review of Merchant Card Payment Costs and Surcharging’ conclusions paper here.
When will the changes take effect?
The new No Surcharge rules will take effect from 1 October 2026. You can continue to apply a surcharge to credit or debit card transactions up until this date.
About the ‘No Surcharge’ rule
The new rules will be enforced by card networks and payment service providers through their scheme rules and merchant contracts, not by the ACCC. However, the ACCC and state and territory regulators will continue to enforce Australian Consumer Law requirements, including prohibitions on misleading pricing practices.
The changes do not apply to all surcharges
The changes only affect surcharges related to card payments that are separate from a consumer paying with a particular card and do not affect other fees or surcharges your business may choose to apply. Examples of other fess can include delivery fees, booking fees, weekend surcharges and public holiday surcharges. Fees such as these can still be charged where appropriate but should be clearly disclosed to customers.
How should dealerships consider preparing for the changes?
To prepare for the changes dealers may wish to consider some of the options below:
- Absorbing card processing costs.
- Reviewing merchant service fees and negotiating with card providers for a better deal.
- The ACCC advise that businesses can continue to recover the cost of accepting card payments by incorporating that cost into their overall pricing for the products or services they sell. You must be careful not to mislead consumers about the reasons for any price increase.
- Working with your card providers to make the appropriate adjustments to card payment terminals.
- Introducing a clearly communicated minimum transaction value for credit or debit card payments.
- Considering alternative payment arrangements where appropriate.
Each option carries different risks and benefits, so dealerships should assess what best suits their business.
More information
Dealers can find more information on what their options may be and how they may consider introducing them by vising the ACCC website.