Card Surcharge Updates for Australian Businesses

What is the biggest change I need to be aware of?

From 1 October 2026, you can no longer add a card payment surcharge to Eftpos, Mastercard or Visa transactions. The price your customer sees at checkout must include the cost of payment. The change applies to in-store, online and over-the-phone card payments equally.

Why is surcharging being removed?

The RBA found that surcharging was no longer doing the job it was designed for. With card use now dominant, surcharges had become harder to compare, harder to avoid, and a source of customer frustration. The reform shifts the focus from surcharges to clearer all-inclusive pricing.

Does the ban apply to weekend or public holiday surcharges?

No. The reform only applies to surcharges that recover card payment costs. Non-payment surcharges (such as a weekend or public holiday surcharge that recovers higher staff wages on penalty-rate days) are outside the scope of the RBA’s review. You can continue to apply these, subject to the usual Australian Consumer Law requirements around clear and accurate pricing.

Will any other changes happen at the same time?

Yes. Alongside removing surcharging, the RBA is lowering interchange caps and capping foreign-card fees. As part of the same reform, the RBA is also reducing interchange fees — the wholesale cost businesses pay to accept card payments. The extent to which these reductions will offset the cost of absorbing surcharges will vary depending on your transaction mix. We are working to confirm what this means specifically for HappenPay customers and will provide further detail in future updates.

Does the surcharging ban apply to all card schemes, or only specific ones?

The ban applies only to the RBA’s designated card networks: eftpos, Mastercard and Visa (covering their debit, prepaid and credit products). This covers both card-present and online transactions.

Non-designated schemes are not captured by the ban, including:

• American Express (Amex)
• UnionPay (UPI)
• Diners Club
• JCB

These schemes can still be surcharged under existing rules and their own scheme agreements.

The RBA has flagged that competition and efficiency issues relating to three-party networks will be considered in the next review commencing mid-2026, so the treatment of non-designated schemes may change in future.

Does the surcharging ban apply to Buy Now, Pay Later (BNPL) transactions?

No. BNPL services (such as Afterpay, Zip, Klarna, and similar providers) are not designated card networks and fall outside the scope of the RBA’s surcharging ban. The ban applies only to eftpos, Mastercard and Visa.

The RBA’s conclusion paper notes that competition and efficiency issues relating to BNPL services will be considered as part of the next review commencing mid-2026, under the broader scope of the amended Payment Systems (Regulation) Act powers. This means BNPL surcharging rules may be revisited, but no change is being made under the current reforms.

For now, merchants should continue to follow each BNPL provider’s contractual terms regarding surcharging.

What should I do before 1 October 2026?

• Review your current pricing and decide whether to absorb the cost of payments or adjust your prices.
• Remove any visible surcharge messaging from your point-of-sale, menus, website and signage.
• Brief your front-line team so they can answer customer questions confidently.

Do I need to change anything about how I take payments?

No. Your HappenPay terminal, software and reporting all continue to work as they do today. You can continue accepting card present, card not present, online and cash payments; nothing to swap or reinstall.

Do I need to update my receipts or invoices?

Any line on a receipt or invoice that itemises a card payment surcharge will need to be removed before 1 October 2026.

How do I recover my card payment costs without surcharging?

The same way you recover other costs: by building them into your prices. A small uplift across your products or services will typically be enough to offset the average cost of card acceptance, particularly given the simultaneous reduction in interchange. Our calculator helps you size the uplift for your business.

Will my payment costs go up or down?

Industry-wide, merchant payment costs are expected to decrease as interchange caps are lowered and foreign-card fees are capped for the first time. Whether your costs increase or decrease will depend on your card mix and current fees. We’ll review your account and provide a personalised summary before 1 October 2026.

Can I still offer discounts for cash or lower-cost payment methods?

Yes. The reform only prohibits surcharging; it does not prohibit discounting. You can still encourage customers towards cash, debit or other lower-cost methods through discounts or loyalty incentives.

What is least-cost routing and should I be using it?

Least-cost routing automatically routes contactless debit transactions through the network that costs you the least, usually eftpos. If you’re on HappenPay and least-cost routing is appropriate for your business, it’s already enabled or available on request.

What should my team say if a customer asks about the change?

• “From 1 October 2026, all card payment surcharges are being removed across Australia. It’s an RBA-led change to make checkout pricing clearer.”
• “Our prices already include the cost of accepting cards, so you’ll pay the same whether you tap, insert or pay online.”
• “If you’d prefer to pay another way, that’s still welcome; just let us know.”

Will the change affect tipping or split payments?

No. Tipping, split bills, group payments and other point-of-sale features continue exactly as they do today. The reform only changes whether a card payment surcharge can be added.

What happens if a merchant keeps surcharging after 1 October 2026?

The card networks (eftpos, Mastercard, Visa) will reinstate their no-surcharge rules under the reform. Continued surcharging would breach those rules and could attract enforcement action from the card networks and, if necessary, the federal government. The RBA has indicated legislation is on the table if voluntary compliance falls short.

Is this just for small businesses or all merchants?

It applies to all merchants regardless of size. Small merchants are expected to benefit the most, as they currently pay higher average fees and have the most to gain from lower interchange caps.

Are more changes coming, and what about BNPL and mobile wallets?

Yes. The 1 October 2026 reform only covers eftpos, Mastercard and Visa surcharges. Surcharges on buy now pay later (e.g. Afterpay, Zip) and mobile wallet transactions (e.g. Apple Pay, Google Pay where they carry an extra cost) are in scope for the RBA’s next round of consultation, due to start mid-2026. They may be regulated separately at a later date.

For now, surcharges on those payment methods are not banned, but we expect change. We’ll keep HappenPay merchants informed as the consultation progresses, so you don’t need to track it yourself.