Card payment sucharges banned in Australia from 2026

[Aeryn]

But the best rewards earning credit cards aka Amex arent issued by banks. Im ok with surcharge ban on debit cards (would require the removal of cc cobranding and move back to eftpos) but no issue with small CC surcharges.

The essential stores like big supermarkets dont have surcharges anyway - they build into their pricihg (along with all those coughpy plastkic toy promotions).

I think if surcharges go, we will just see all prices increase as businesses will still have to pay terminal providers for service (and big retailers already pay heaps for the monopoly armoured vehicle cash supply/collection).

It may also see some businessess go cash only if they have to absorb costs and this will lead to more under reporting of revenues as much easier to under declare cash income to evade tax.

Not sure all consequences have been thought through. The less cash used the higher the compliance with tax as the banks report balances to ATO. Overall tax could be lower if we went cashless and killed cash drug deals, illegal cigarette sales etc.

 

[LionKing]

RBA green lights credit card surcharge ban

Surcharges for debit and credit card payments will end on October 1 and banks will lose $660m in revenue according to changes announced by the RBA on Tuesday.

www.afr.com

Praise the Lord! Credit Card surcharges banned from 1st October 2026!

Honestly, our airlines and credit card companies have earned too much, it is time for them to give back to our society!

 

[MelbFlyer]

Even with the surcharges being banned later in the year, the price of things will just go up anyway, as is seen right now and with inflation expected to increase plus CCs offering less points with higher spend criteria / longer blackout periods, it's only going to get worse.

 

[justinbrett]

AMEX is exempt

 

[LondonAussie]

Finally, Australia to be brought in line with the rest of the world. Now if only they could follow suit for EU261 air passenger rights!

Edit: Ok maybe I spoke to soon if Amex is exempt. Typical Australia doing it half-coughd.

 

[Aeryn]

And watch the banks cut staff and raise fees on other accouhts to compensate for revenue loss. More branch closures, redundancies in CC teams, so more people unemployed when we already headed for recession due to ME war.

Hello more inflation come October 1 as retailers raise prices to pay for the card processing directly. Customers will still pay.

And then RBA will raise interest rates to try and curb inflation they caused, so those with mortgages will cry poor.

Only good thing will be better interest earnings for savers.

 

[WilsonM]

And watch the banks cut staff and raise fees on other accouhts to compensate for revenue loss. More branch closures, redundancies in CC teams, so more people unemployed when we already headed for recession due to ME war.

First to go will be reward point earning...

 

[Mr_Orange]

And watch the banks cut staff and raise fees on other accouhts to compensate for revenue loss. More branch closures, redundancies in CC teams, so more people unemployed when we already headed for recession due to ME war.

Hello more inflation come October 1 as retailers raise prices to pay for the card processing directly. Customers will still pay.

And then RBA will raise interest rates to try and curb inflation they caused, so those with mortgages will cry poor.

Only good thing will be better interest earnings for savers.

And then the world will end?

 

[LondonAussie]

First to go will be reward point earning...

Surcharges have been banned in the UK since 2018, including Amex. My UK Amex earns more points than my Aussie one and converts to more airlines and at better rates.

 

[transpactraveller]

And watch the banks cut staff and raise fees on other accouhts to compensate for revenue loss. More branch closures, redundancies in CC teams, so more people unemployed when we already headed for recession due to ME war.

The Austrailan big 4 banks are the world's most profitable banks. I have no sympathy for them.

 

[LionKing]

AMEX is exempt

Surcharge fees for tapping a card to pay with eftpos, Mastercard or Visa will be removed by October 1. The RBA estimates 16 per cent of businesses are currently surcharging. The RBA is also introducing an interchange fee cap on for foreign cards for the first time. Overall wholesale card payment costs for merchants will reduce by around $910 million per year.

Source: AFR

It seems like it, and you may still need to pay surcharges on Alipay and WeChat pay as well.

 

[justinbrett]

Surcharges have been banned in the UK since 2018, including Amex. My UK Amex earns more points than my Aussie one and converts to more airlines and at better rates.

I'm not sure about the UK but in the US rewards points are funded by interchange fees, not surcharges.

So you're still paying, it's just baked into the cost of the goods & services.

 

[LondonAussie]

I'm not sure about the UK but in the US rewards points are funded by interchange fees, not surcharges.

So you're still paying, it's just baked into the cost of the goods & services.

That’s absolutely fine by me if it means I can be told the total final price before paying.

 

[Chicken]

Surcharges on credit and debit card payments will be banned from October, the Reserve Bank has confirmed.

Yay!

SMH The Age

 

[HMcM]

I'm not sure about the UK but in the US rewards points are funded by interchange fees, not surcharges.

So you're still paying, it's just baked into the cost of the goods & services.

The way that the RBA is able to get rid of the surcharges is by forcing the reduction of interchange fees, so that's where the reduction of rewards will come from.

 

[transpactraveller]

AMEX is exempt

Sigh. We love to make things confusing and complicated in this country. Why can't we just ban it properly and fully like the rest of the world has. (excluding NZ, but their banks are all owned by AU banks anyway)

 

[dajop]

The Austrailan big 4 banks are the world's most profitable banks. I have no sympathy for them.

To play devil’s advocate for a moment, most of us indirectly own shares in the big 4 via super..

 

[justinbrett]

That’s absolutely fine by me if it means I can be told the total final price before paying.

This RBA move seems to make it impossible for Visa/Mastercard to offer rewards programs, certainly not at their current levels (by removing surcharges and capping interchange fees). Rewards programs were explicitly mentioned.

The RBA said the existing system has largely meant that debit and credit card users are funding the cost of expensive rewards points and frequent flier schemes, despite only a section of users benefiting from such schemes.

I'm not upset AMEX is exempt if it means no changes to reward schemes. Most major retailers don't charge it.

 

[Aeryn]

And then the world will end?

No but life will be more expensive for every australian due to price increases.

Banks and other payment gateway providers wont just start offering a free service. Business still have to pay fees, they just become built into prices so even those paying cash also pay more.

Its fair for big business because for them cash is far more expensive to handle than cards. But for smaller businesses who walk their cash to bank or dont declare it, if they want to keep customers who prefer to pay by card they now have to absorb costs but they wont, they will jack up price so its not a surcharge but an across the board increase (probably higher than 1-2% card fee).

Will be interesting to see how reward CC's will now attract customers, as annual fees likely higher, points earn will probably be lower and the lounge passes already devalued. Most CC interest in earned on non rewards card as higher income earners more likely to pay off the black/platinum cards in full each month.

Mastercard rewads cards earn already pitiful below 1 point per dollar, im guessing Visa will head same way. If Amex remains exempt they should pick up more of the rewards card market.

My biggest expenses i.e groceries and health insurance have no surcharges for Amex so not much will change from points earning perspective but costs will go up for all.

 

[LondonAussie]

Banks in other countries can offer rewards programs without card surcharges. Why is Australia different?