The Reserve Bank of Australia has confirmed the biggest overhaul of Australia’s payment system in over two decades. From 1 October 2026, card surcharges on eftpos, Visa, and Mastercard transactions will be banned. The RBA is also reducing interchange fees and improving payment cost transparency to support businesses through the transition. This page is BuzzPay’s plain-English guide to the changes, updated as new information becomes available.
The Three Key Changes
1. Surcharges Banned from 1 October 2026
Businesses will no longer be permitted to add a surcharge to debit, prepaid, or credit card payments on eftpos, Visa, and Mastercard networks. This applies to all businesses processing card payments in Australia — cafes, retail shops, online stores, tradies, and service providers. If your terminal or POS system currently adds an automatic surcharge at checkout, this must be disabled by 1 October 2026.
2. Interchange Fee Caps Reduced
The RBA is lowering the maximum interchange fees that merchants pay on domestic debit and consumer credit card transactions. This is expected to save Australian businesses approximately $910 million per year collectively. Small businesses stand to benefit the most because they typically pay fees closer to the current caps. The interchange reductions take effect on the same day as the surcharge ban — 1 October 2026.
3. Fee Transparency Improved (from April 2027)
From 1 April 2027, card networks and payment providers will be required to publish clearer, more accessible fee information. This will make it easier for businesses to compare providers, negotiate rates, and ensure they are not overpaying. The RBA will also introduce caps on interchange fees for foreign-issued cards from April 2027.
What This Means for Your Business
If you do not currently surcharge card payments, there is no immediate change to how you operate. The interchange fee reductions should lower your payment processing costs from October 2026 — check with your provider to confirm the savings will flow through to your rates.
If you currently surcharge, you will need to absorb payment processing costs into your headline pricing from 1 October 2026. The RBA acknowledges that some businesses — particularly the 16 per cent of merchants that currently surcharge — may increase their advertised prices to cover the cost of card acceptance. The RBA considers this a better outcome than the current system where surcharges are often poorly disclosed and confusing to consumers.
How BuzzPay Helps Merchants Navigate the Change
BuzzPay’s approach to pricing has always been transparent — no hidden fees, no complex rate tables, and no lock-in contracts. As a PayFac, BuzzPay is well-positioned to pass interchange fee reductions through to merchants quickly. Our team on 1300 289 972 can review your current payment costs, model the impact of the surcharge ban on your business, and recommend the most cost-effective terminal and pricing configuration for your situation.
Key Dates
31 March 2026: RBA Conclusions Paper published, confirming all changes. 1 October 2026: Surcharge ban takes effect. Interchange fee caps reduced. 1 April 2027: Foreign card interchange caps and fee transparency requirements take effect. Mid-2026: RBA begins consultation on extending regulation to mobile wallets, BNPL, three-party card networks, and e-commerce platforms.
Further Reading
RBA Review of Merchant Card Payment Costs and Surcharging — Conclusions Paper (rba.gov.au). This page will be updated as the RBA publishes further guidance on implementation details.
