Card Payment Surcharges Banned in Australia from 2026

[Pushka]

No, it's just cynical behaviour since, as has been stated many times, the actual cost of card acceptance has reduced.

Businesses can and do increase prices but pegging them to government decision without acknowledging the whole is pathetic.

I do not understand how you can't see that while the cost of credit card facilities has decreased, the cost to the business now they can't pass that cost (even that reduced cost) on to the consumer, means that the net effect is an extra cost to the business.

 

[Kangol]

I do not understand how you can't see that while the cost of credit card facilities has decreased, the cost to the business now they can't pass that cost (even that reduced cost) on to the consumer, means that the net effect is an extra cost to the business.

If you look at the overall numbers, the % of people who are good and successful business owners is very low.
This means the % of people who are NOT good and successful business owners is very high.
For most people in a population, they will not understand this. Why that is the case is beside the point, the relevant part is they don't get it and likely never will.
This explains (not defending) why so many people have voiced their opinions in the way they have.
The quote "it's not your fault, but it is your problem" certainly holds true to some regard.

 

[Mr_Orange]

I do not understand how you can't see that while the cost of credit card facilities has decreased, the cost to the business now they can't pass that cost (even that reduced cost) on to the consumer, means that the net effect is an extra cost to the business.

I can, easily, but it should have already been baked into the business model. The cost of card acceptance has always been there and now it's less.

Prior to the last RBA ruling (I forget the year) which capped surcharging at the actual cost, surcharging was extremely rare which means that all those businesses had accounted for the cost in their pricing. They then introduced a surcharge, thereby double dipping. Now, their cost has reduced from what was already accounted for, they can't surcharge, but they are crying like spoilt brats about not being able to surcharge and then increasing prices by many times the cost of the surcharge that has been removed.

So many of the discussion points in this thread are failing to recognise the above history of surcharging.

 

[HMcM]

We can't wind back employee law. Improve yes. Make less beneficial? Never.

I mean of course we can, it's just unpopular with certain groups. The majority of Australians would be better off without weekend penalty rates.

What's an improvement and what is less beneficial is quite subjective. It can also be traded for some other advantage.

 

[306]

I can, easily, but it should have already been baked into the business model. The cost of card acceptance has always been there and now it's less.

Prior to the last RBA ruling (I forget the year) which capped surcharging at the actual cost, surcharging was extremely rare which means that all those businesses had accounted for the cost in their pricing. They then introduced a surcharge, thereby double dipping. Now, their cost has reduced from what was already accounted for, they can't surcharge, but they are crying like spoilt brats about not being able to surcharge and then increasing prices by many times the cost of the surcharge that has been removed.

So many of the discussion points in this thread are failing to recognise the above history of surcharging.

I think it has been baked in the business models, just not passed on to the customer, now it has been passed on in 1 batch. They've just been wearing the costs.

Businesses do not change every individual price when they get any/every input cost variation.

 

[AuSammy]

I mean of course we can, it's just unpopular with certain groups. The majority of Australians would be better off without weekend penalty rates.

What's an improvement and what is less beneficial is quite subjective. It can also be traded for some other advantage.

There is the circumstance of a business I knew that would not have opened on Sundays except there were staff desperate for a job or extra hours and excepted payment that made opening the business viable (and no weekend surcharge on meals). Not an isolated incidence I’m sure.

 

[Pushka]

Pleased our line of business is with other business who pay by funds transfer. The ones who want to pay by credit card are rare so we send them to b2bpay. And they pay the quite significant fees given the amount of the invoice involved. Maybe four a year. Don’t know what will happen with those but we aren’t currently working with them so moot.

Feel sorry for small business who are now wearing it and nothing here convinces me that they are any better off. They aren’t.

 

[Mr_Orange]

I think it has been baked in the business models, just not passed on to the customer

If the cost of acceptance has been baked into the business model, it is already being passed on to the customer because pricing is derived from costs + profit.

This isn't hard, people!

 

[burmans]

The timing - overnight - suggests many are.

As I’m sure is the intent but that doesn’t make it true!

 

[lovestotravel]

Feel sorry for small business who are now wearing it and nothing here convinces me that they are any better off. They aren’t.

Using CBA for terminals, they are so slightly "better off" on paper.......

CommBank reduces merchant fees to support businesses manage costs

CommBank will reduce its Merchant Service Fee for in-store payments to 0.99 per cent per transaction for eligible merchants¹ from 1 October 2026, providing additional support to Australian businesses as they manage operating costs and adapt to a changing payments landscape.

www.commbank.com.au

"CommBank is reducing its Merchant Service Fee from 1.10% to 0.99%¹ per transaction for in-store payments for customers on simple flat-rate pricing from 1 October 2026, making it one of the lowest rates in market."

But of course, as they can't pass that fee on, anymore, they are worse off and prices rise to cover it

 

[HappyFlyerFamily]

So the card surcharge was there.

Initially they couldn’t charge it on, then they could (and some did so) - so better off, now they can’t again and the fee is lower- so worse off.

Or maybe resetting to the initial position. Swings and roundabouts

 

[OATEK]

If the cost of acceptance has been baked into the business model, it is already being passed on to the customer because pricing is derived from costs + profit.

This isn't hard, people!

While this may apply more generally, small businesses that rely on wide patronage (eg. footfall in a mall) and have raised their charges to cover the surcharge and inflationary pressures, will be hoping that the footfall has not changed direction. One of the coffee shops I frequent does not serve meals, just coffees, pastries and cakes so lots of small value sales (eg $5-$30). A 10% change in footfall will take so much of their profit that they will be cutting staff and potentially joining the many small businesses leaving the field of play each year.

 

[lovestotravel]

While this may apply more generally, small businesses that rely on wide patronage (eg. footfall in a mall) and have raised their charges to cover the surcharge and inflationary pressures, will be hoping that the footfall has not changed direction. One of the coffee shops I frequent does not serve meals, just coffees, pastries and cakes so lots of small value sales (eg $5-$30). A 10% change in footfall will take so much of their profit that they will be cutting staff and potentially joining the many small businesses leaving the field of play each year.

Exactly - One of the cafe's near where I work has slowly cut staff over the last 2 years as prices go up and less people buy coffee's. They do breakfast and lunch (small meals) but most sales are $5-$20.

The owner has around 7 other cafe's - Most started just before COVID - They survived COVID, by being shut, but have recently had to cut back on staff due to sales declining/less customers.

Speaking to him a few weeks back, he said while more people are around/in offices, they are simply not coming in, even for a Coffee.

Meanwhile, our coffee/tea and milk consumption in the office, is now higher that pre-covid, yet we have 30% less people in the office.

 

[Berlin]

So many of the discussion points in this thread are failing to recognise the above history of surcharging.

And the very obvious fact that miraculously, businesses literally all over the rest of the world- small and large- manage to build these costs into their business models without surcharging their customers and most of them do just fine!

This whole whingy whiny here at the moment is simply to justify an easy money grab imho. “Poor little family owned cafés” doing it so hard, the usual cry me a river. Yawn.

 

[HMcM]

The RBA, which operates independently of the government, removed a rule that prevented the card networks imposing a surcharge ban. Australia & NZ were global outliers in having this rule.

There was no legislation introduced or changed, and no vote in parliament. Surcharges have not been made illegal by the government.

Didn’t the government refer the matter to the RBA with the recommendation it make these changes?

Per the ALP Website:

In late 2024, the Albanese Labor Government announced that we were prepared to ban debit card surcharges to help with the cost of living, subject to further work by the Reserve Bank and safeguards to ensure both small businesses and consumers can benefit.

In response to this, the Reserve Bank will today take steps to end credit and debit card surcharging from 1 October.

So not quite sure how "independent" the RBA really is.

 

[drron]

And the very obvious fact that miraculously, businesses literally all over the rest of the world- small and large- manage to build these costs into their business models without surcharging their customers and most of them do just fine!

This whole whingy whiny here at the moment is simply to justify an easy money grab imho. “Poor little family owned cafés” doing it so hard, the usual cry me a river. Yawn.

Though 4 Australian State Capitals have 4 in the top 10 in the world in the cost of housing.

10 Most Expensive Housing Markets in the World | Canstar

Four Aussie cities have now entered the top 10 list of the most expensive housing markets around the world. Is your city one of them?

www.canstar.com.au

And in this survey 3 in the top 10 and 5 in the top 20

Australian housing costs 8.9 times the average salary. Here's how that stacks up globally.

Australia’s housing market is increasingly unaffordable. But is it exceptional? Juliette O'Brien analyses like-for-like global data.

www.forbes.com.au

And one complain that I often hear is how expensive commercial rents have become.

 

[Cruiser Elite]

Real estate prices so out of control and a 20-30% correction so necessary and so overdue - and yes it will mean a severe hit to me but for benefit current snd future young generations I am more than comfortable with the hit

 

[VPS]

A surcharge on Saturday night is absurd.
It's the busiest and most profitable night.
Most restaurants would be getting at least three if not four sittings out of each and every table.
It's shameless gouging.

You really think a restaurant can get three or four sittings in one night - absolutely no way any restaurant I frequent (and I frequent a lot) would get more than two

 

[VPS]

I was really peeved because I forgot to pay my house insurance before the 1st October and so I rang them today and said can I use a credit card other than through DEFT and she said sure I'll take your payment over the phone and none of that was on the invoice (and I didn't have to pay a surcharge) Maybe I'll put that in the little things I like thread