If your business currently adds a surcharge when customers pay by card, there’s an important change coming.
From 1 October 2026, card surcharging will be removed across eftpos, Visa, Mastercard and American Express payments in Australia.
For many small businesses, card surcharges have become an easy way to recover merchant and processing fees, so what happens when you can no longer pass these costs directly on to your customers?
Here’s what you need to know.
What’s changing?
Until 30 September 2026, the current rules continue to apply. Businesses can still charge a card surcharge, provided it does not exceed the actual cost of accepting that payment type.
The Reserve Bank of Australia (RBA) has changed its rules to allow card networks to prohibit surcharging from 1 October 2026. eftpos, Mastercard and Visa have each confirmed they will introduce no-surcharge rules from this date, and American Express has also confirmed it will remove surcharging.
This covers relevant debit, credit and prepaid card payments across these networks.
It’s important to remember that card processing fees themselves aren’t disappearing. Your bank or payment provider may still charge your business for accepting card payments, you just generally won’t be able to add that cost as a separate card surcharge for your customer.
The change applies specifically to fees charged because a customer chooses to pay by card. It does not prevent genuine weekend or public holiday surcharges, booking fees or service fees that apply for reasons unrelated to the customer’s choice to pay by card.
So, what can your business do?
If you currently rely on card surcharges to recover merchant fees, now is a good time to look at how much those fees are actually costing your business.
You may decide to:
- Absorb the cost – Depending on your transaction volume and merchant fees, the impact may be small enough to absorb within the business.
- Review your overall pricing – Rather than adding a separate card fee, you may need to factor some or all of your payment processing costs into your general pricing.
- Review your payment provider – Compare your current merchant fees and consider whether another provider or payment method could reduce your costs.
Before simply increasing all your prices by your current surcharge percentage, take a look at the numbers. Not every customer necessarily pays by card, and processing costs can vary between providers and payment methods.
Using Stripe or Square?
If you use Stripe or Square, your processing fees will continue, but there are a few things to be aware of.
Square: Square has advised that its built-in card surcharge feature will be automatically switched off from 1 October. If you’ve manually created a card related fee or use a third-party POS system, however, you’ll need to review and update this yourself.
Stripe: Stripe users should review any card or processing fees currently being passed on to customers and update their payment setup where necessary. Stripe has also announced lower pricing for domestic Australian card transactions from 1 October, so check what your actual processing costs will be before making changes to your pricing.
What should you do before 1 October?
Start by reviewing your current setup:
- Check how much you’re actually paying in merchant and card processing fees.
- Review any card surcharge settings in your payment system.
- Remove or update surcharge wording on invoices, websites, menus, signage or other customer information.
- Speak with your payment provider about how they’re handling the change.
- Consider whether your overall pricing needs adjusting.
- Check any invoices issued before 1 October that may be paid by card after that date, as surcharging may no longer be available if the payment is made on or after 1 October.
And remember, simply renaming a card surcharge as a “processing fee” or “admin fee” doesn’t necessarily change what it is. If the fee is being charged because the customer chose to pay by card, it may still be considered a card surcharge.
We’re here to help
There’s no need to wait until 1 October to start thinking about this.
Your bookkeeping records can help you understand how much card processing is actually costing your business and whether absorbing the fees, adjusting your pricing or reviewing your payment provider makes the most sense.
If you’re unsure how these changes may affect your business, get in touch with our team. We can help you review the numbers and make sure you’re prepared before the new rules begin.
Further information
For the latest information and guidance on the card surcharge changes, visit:
- Reserve Bank of Australia (RBA) – Review of Retail Payments Regulation and Card Surcharging FAQs
- Australian Competition & Consumer Commission (ACCC) – Card Surcharges