If your business currently adds a surcharge to card payments, your window to prepare is closing fast. From 1 October 2026, the Reserve Bank of Australia's ban on surcharging across EFTPOS, Mastercard, and Visa networks will take effect. You will be affected by the government ban, and many of your payment providers will be affected. Some payment providers intend to extend the surcharge ban to include American Express, China UnionPay, and Discover, which goes beyond the official RBA mandate.
Key Takeaways
- The RBA's surcharge ban on EFTPOS, Mastercard, and Visa networks takes effect on 1 October 2026, making surcharging on debit, prepaid, and credit cards illegal.
- EFTPOS providers control terminal settings and merchant agreements so that enforcement will be practical and immediate.
- Every merchant should ask their provider two direct questions now: which cards are covered, whether any surcharging remains, and what the timeline for system changes is.
What Is the RBA Surcharge Ban?
The surcharge ban is a regulatory change, effective 1 October 2026, that prohibits Australian merchants from adding a separate fee to customer transactions made by EFTPOS, Mastercard, or Visa debit and credit cards, as mandated by the Reserve Bank of Australia. Historically, retailers added this surcharge to cover the cost of card acceptance in Australia. After 1 October, the cost of card acceptance for Visa and Credit cards will be paid by you.
How Can EFTPOS Providers Enforce the Surcharge Ban?
They control merchant terms, terminal settings, and payment workflows. It is very much in their interest to enforce this ban. From my discussions with some of them, I have been told that they intend to do this. I would be shocked if any of them do not.
Which Cards Does the Surcharge Ban Actually Cover?
The official RBA surcharge ban applies to domestic EFTPOS, Mastercard, and Visa transactions. However, while the RBA's official surcharge ban covers these networks, some payment providers are extending this internal ban to American Express, China UnionPay, and Discover cards, meaning merchants using their services will lose the ability to surcharge on these cards through their platform, regardless of the law.
What Should Retailers Do Before 1 October 2026?
Ask your payment provider these direct questions before 1 October 2026:
- Which cards will be covered by the surcharge ban on your platform, including those you do handle, such as American Express, China UnionPay, and Discover?
- What changes will be made to my terminal or POS system, and when will you be notified?
I bet you will not get a direct answer, but I do recommend you ask by email so you get a written response.
Written by:
Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.
