Card payment sucharges banned in Australia from 2026

[Happy Dude]

Surely VA and QF always have and always will set prices in such a manner to maximise yield. They would have quite robust data on what proportion of sales from what channels are surcharges or not and this would factor into pricing decisions.

TBH most people wouldn’t notice if your fare to Europe is $2140 one day and $2170 the next. It might well have been $1980 three weeks earlier or even three weeks later as pricing is tweaked.

Yes but will they raise prices somewhere in the equation?

 

[Happy Dude]

Jeez, what tyres were they? Gold plated, I guess (my son owns a tyre business).

Conti Contact 7 19" runflats wide and low profile, fitted/balanced. Cheapest option available. Reluctant purchase but other brands 10%+ more. Last set of Goodyear Eagle F1's in 2021 cost $1,515. Would have been about $2,050 this time but couldn't actually get them (or Michelins).

 

[dajop]

Yes but will they raise prices somewhere in the equation?

In the higher, less elastic booking classes, almost certainly. At the bottom end of the fare range, they will, as they always do, charge a fare that meets their yield objectives. If demand is soft already can’t see them increasing their fares. But if it’s strong they will (but probably already would have anyway). Absorbing CC fees is just another one of the many shocks - some cost related such as fuel, some demand related - such as weak economy or conflict, that they have to deal with on a regular basis.

 

[Happy Dude]

Both/all businesses are competitive markets, unless you live in a big enough city where there is only one of those businesses in the wider geographical region.

Medical specialists, and I'm sure there's others, DGAF what the others charge. It's not competitive in that context. I doubt that my ENT or cardiologist, or the orthodontist for my kids braces, would entertain a discussion about making fees in-line with the "competition". But I suppose if there's another in the region then it is competitive by definition.

 

[lovestotravel]

Another one simply increasing prices/fees (but we'll end up slightly better, but with less FF points)

Order fees are currently $0.28 per order and increasing to $0.40

We usually spent about $15 per week/order, which is a Merchant Service Fee: $0.23 plus the $0.28 per order so $0.51, but going down to $0.40 for all orders

Current fees
$0.28 per order
1.5% of the transaction value for Visa or MasterCard cards;
4% of the transaction value for American Express cards;
3.8% of the transaction value for Paypal payments; or
$0.50 for a bank account.

*************************************
Canteen lunches for the kids, we generally spend about $15

Following the Reserve Bank of Australia's recent changes to payment surcharge arrangements in Australia, and as part of a review of our pricing structure, we are updating the way fees are applied to QuickCliq transactions.

These changes are designed to simplify our pricing, improve transparency for parents, and ensure we can continue to provide a secure, reliable, and high-quality ordering service to school communities.

Effective 1 October 2026, the following changes will apply:

• Payment processing surcharges will be removed for all payments methods
• Parent Order Fees of $0.40 will apply to each individual order
• Wallet top-ups will no longer incur any transaction fees

 

[Growing Older]

"From 1 October 2026, credit and debit card payments will no longer be available on deft.com.au. Any payments scheduled from this date will be cancelled automatically."

Just paid my quarterly strata fees against a credit card for potentially the last time... in December, it'll be slim pickings to get any FF miles / reward points out of this lumpy expense.

 

[Happy Dude]

"From 1 October 2026, credit and debit card payments will no longer be available on deft.com.au. Any payments scheduled from this date will be cancelled automatically."

Just paid my quarterly strata fees against a credit card for potentially the last time... in December, it'll be slim pickings to get any FF miles / reward points out of this lumpy expense.

They going to waste a lot of time and money chasing late and unpaid rent. The only way to pay is bank transfer? Companies like pay.com.au and sniip must be sweating it.

 

[grandir]

Come 1st October, they will have to drop the 0.49% surcharge though.

Do we know if Government entities are also subject to the RBA changes? i.e. will ATO stop charging surcharges to pay via CC?

 

[Mr_Orange]

Do we know if Government entities are also subject to the RBA changes? i.e. will ATO stop charging surcharges to pay via CC?

Surely, they have to be.

 

[Berlin]

They going to waste a lot of time and money chasing late and unpaid rent. The only way to pay is bank transfer?

Yep, that’s what I’ve said from the start when our STRATA announced this. They’re pushing full arrogance “No card payment, full stop” on us in what is very much a non-competitive situation but I hope will over time regret it due to exactly what you are saying. And then they might gone to their senses and look at alternative payment providers.

But all this will take time- the next two or three years might be painful.

 

[Growing Older]

Surely, they have to be.

Who is the ATO's bank? The RBA!

They couldn't release this (ahem) "enhancement" and not apply it to themselves!

 

[moa999]

Same Deft notice here from my small strata company.. Thanks Macquarie (who owns DEFT)

 

[Zero]

Do we know if Government entities are also subject to the RBA changes? i.e. will ATO stop charging surcharges to pay via CC?

I hope they drop the international card surcharge. I don't know about US cards but there are several UK cards which could be moderately lucrative if they can be used for ATO (they work with HMRC although there are some limitations, which may not apply to ATO payments unless/until the issuers catch on).

 

[transpactraveller]

New Zealand has pretty high card surcharges, do they have good points earning cards?

 

[lovestotravel]

I'm still laughing

https://www.news.com.au/finance/economy/australian-economy/menu-prices-set-to-rise-as-hospitality-industry-warns-of-card-surcharge-ban-fallout/news-story/8f1422bb06d85ae1d8fb69c0e0f6af53

“Because now consumers that pay with cash will now pay an increased price.

“In addition, because typical surcharges were less than coin totals – so on a $5 coffee, it was 8 or 9 cents – the menu can’t say $5.08 or $5.09."

Higher prices for all
Less CC rewards for all

Such a great move

 

[MEL_Traveller]

I'm still laughing

https://www.news.com.au/finance/economy/australian-economy/menu-prices-set-to-rise-as-hospitality-industry-warns-of-card-surcharge-ban-fallout/news-story/8f1422bb06d85ae1d8fb69c0e0f6af53

“Because now consumers that pay with cash will now pay an increased price.

“In addition, because typical surcharges were less than coin totals – so on a $5 coffee, it was 8 or 9 cents – the menu can’t say $5.08 or $5.09."

Higher prices for all
Less CC rewards for all

Such a great move

And driving inflation!

The real benefit is probably for small business, with more money flowing in through both the reduced bank charges, and slightly increase cost of the product. Might help some businesses that are struggling.

But the price increases are sort of ‘avoidable’ for those that want to… stick to retailers where the surcharge was never applied, and prices don’t increase.

 

[SeaWolf]

But the price increases are sort of ‘avoidable’ for those that want to… stick to retailers where the surcharge was never applied, and prices don’t increase.

This is the key. Businesses that hike their prices will still have to compete with those who don't. Right now plenty of businesses are just hiking their prices anyway, this is just the latest excuse. So make sure you shop around folks.

I'm paying $3.70 for my morning coffee (including brownie square) because I shopped around and found the best price. If other cafes hike their prices once the surcharges end, they'll still have to compete with this cafe, which will still probably be cheaper than them even if it does bump its prices. Some of those cafes will probably go under blaming it on the surcharge and interchange changes, but really, it'll have been plain old competition that'll have killed them.