Card Payment Surcharges Banned in Australia from 2026

[Mr_Orange]

The small Japanese food outlet in my office building is compliant and has not increased their prices.

 

[esquire]

Yes. And agree. Which is why I'm concerned that SA govt authorities will follow suit. But the messaging was mucky. Not so much theirs but, well, can't get political.

Wondering why they cannot give Government payments an exemption then? - I was reading that they did with Taxis - they can still charge up to 5% CC fee. What makes them so special ?

 

[Mr_Orange]

What makes them so special ?

Nothing, IMO. Why was the Cabcharge surcharge only reduced to 5% and not inline with others to reflect the actual cost of acceptance?

Of course, it should also be removed.

 

[dairyfloss]

Local Sushi Train joining in the fun - loving all the savings from cutting the card surcharges!

 

[Mr_Orange]

Local Sushi Train joining in the fun - loving all the savings from cutting the card surcharges!

View attachment 524202

Sushi Train is a rip-off anyway so this will just push more people away.

Once these muppet business owners realise that their revenue has dropped through lower patronage, I suspect there will be reversals of some of these decisions.

It's cynical to pin such changes to 1st October, implying that the removal of card surcharges are what forced them, when, in fact, their card acceptance costs decreased.

 

[transpactraveller]

In a "cost of living crisis" it does surprise me that fancy restaurants and cafes with weekend surcharges are still full with more than enough people willing and able to pay.

 

[lovestotravel]

In a "cost of living crisis" it does surprise me that fancy restaurants and cafes with weekend surcharges are still full with more than enough people willing and able to pay.

Why ? Only 35% of households have a mortgage. It's only those and some renters that are struggling.

30% or so rent, leaving 30% of people who are enjoying higher interest rates

I couldn't care less about a weekend surcharge, providing the staff are paid correctly

 

[SeaWolf]

Local Sushi Train joining in the fun - loving all the savings from cutting the card surcharges!

View attachment 524202

Are you going to bother shopping around though? I mean, that area does have a few choices nearby.

 

[Happy Dude]

In a "cost of living crisis" it does surprise me that fancy restaurants and cafes with weekend surcharges are still full with more than enough people willing and able to pay.

"Cost of housing crisis" might be closer to the nub. Too much discretionary spending is feeding inflation which is affecting housing. Plenty do not having housing costs to worry about and have not/will not change spending even if prices have risen.

 

[Zero]

Wondering why they cannot give Government payments an exemption then? - I was reading that they did with Taxis - they can still charge up to 5% CC fee. What makes them so special ?

Nothing, IMO. Why was the Cabcharge surcharge only reduced to 5% and not inline with others to reflect the actual cost of acceptance?

Of course, it should also be removed.

Because taxi surcharges are regulated by each state and not the RBA/federal govt.

 

[dairyfloss]

Are you going to bother shopping around though? I mean, that area does have a few choices nearby.
View attachment 524233

Nope. The additional costs don’t particularly bother me - it’s the stripping of card benefits for falsified savings (+ increased fees) that gets my goat!

 

[drron]

In a "cost of living crisis" it does surprise me that fancy restaurants and cafes with weekend surcharges are still full with more than enough people willing and able to pay.

And according to the ACCC weekend surcharges don’t have to be included in the price charged as long as it’s mentioned in person or on the menu. They have nothing to do with CC surcharges.

 

[Jacques Vert]

Booked a flight with QF a couple of days ago...no surcharge.

Went to a local bar/restaurant today that previously charged 1.25%...today no surcharge.

Apologies to those small business owners doing it tough, but it's working for me.

 

[anat0l]

The article is paywalled, but the portion I could read before the rest is covered up mentioned that parents were being deprived of a lucrative source of frequent flyer points.

Don't know whether to laugh or cry...

 

[lovestotravel]

View attachment 524249
The article is paywalled, but the portion I could read before the rest is covered up mentioned that parents were being deprived of a lucrative source of frequent flyer points.

Don't know whether to laugh or cry...

The school I went to, CC fees would be well over $1 million per year, that's about 8 teachers salaries for the year..

They can't just absorb the costs !

 

[Be.au]

View attachment 524249
The article is paywalled, but the portion I could read before the rest is covered up mentioned that parents were being deprived of a lucrative source of frequent flyer points.

Don't know whether to laugh or cry...

Article link for those who have access to the AFR - Private schools ditch credit card payments after surcharge ban

Sydney’s Saint Ignatius’ College Riverview – which charges $42,660 for year 11 and 12 students – has told parents it will not accept card payments from next year, despite about a quarter of families using that method.

The college, on Sydney’s lower north shore, estimated that continuing to offer card payments would cost it about $400,000 a year in processing fees, which would have to be borne by parents in the form of higher tuition costs should the practice continue.

“This decision was not made lightly, and we believe that ceasing card payments is the fairest and most equitable approach, rather than distributing card payment processing costs across all families through higher school fees,” the school said in a message to parents last week.

The school I went to, CC fees would be well over $1 million per year, that's about 8 teachers salaries for the year..

They can't just absorb the costs !

They could always raise the costs and offer a discount for "cash", bank transfer, etc though.

 

[anat0l]

The school I went to, CC fees would be well over $1 million per year, that's about 8 teachers salaries for the year..

They can't just absorb the costs !

I don't see anyone throwing back at schools that if they realised this, they would raise fees by the old CC surcharge to cover the cost of said 8 teachers, rather than adding it as a surcharge, in the same way that everyone who had accused businesses who surcharged CCs should also adapt their prices similarly.

One thought (not related to schools specifically): if a business were to offer a discount for paying non-CC (as opposed to the old model of surcharging for using a CC) that would probably fall afoul of legislation?

 

[kelvedon]

Though obviously not linked to the RBA, I was surprised to see that on the Italian Autostrade, they don’t accept visa or mastercard, but they do accept Amex.

 

[Be.au]

One thought (not related to schools specifically): if a business were to offer a discount for paying non-CC (as opposed to the old model of surcharging for using a CC) that would probably fall afoul of legislation?

It's totally fine and is also mentioned by the ACCC. You can offer a discount for other payment methods - mentioned earlier in the thread.

Can businesses offer a discount if a consumer uses a particular payment method?
Yes. Businesses can offer discounts to consumers who pay using a particular payment method, such as cash or PayID.

Card surcharges

From 1 October 2026, businesses can no longer add a surcharge for payments made using Visa, Mastercard, American Express and eftpos cards.

www.accc.gov.au

 

[serfty]

One thought (not related to schools specifically): if a business were to offer a discount for paying non-CC (as opposed to the old model of surcharging for using a CC) that would probably fall afoul of legislation?

I believe that would be OK to offer a discount for other payment methods; the regulation generically relates to the Advertised Price - that being the maximum payable irrespective of payment method.