The Reserve Bank of Australia (RBA) delayed its final decision on card payment reforms until March 2026. It is to allow more time to review submissions from businesses and the public. This extension means SMBs, including retailers, will keep using the current system longer, with surcharges helping to offset processing fees, which still frustrate many customers.
I've seen firsthand how card fees affect low-margin operations like corner stores and newsagents. Our company submitted detailed feedback to the RBA, emphasising that surcharges are strictly for cost recovery under the Australian Competition and Consumer Commission (ACCC) guidelines, and that removing them could shift the burden onto merchants rather than payment providers as claimed.
Reform Timeline and Key Impacts
The Labor Party's 2022 election pledge aims to eliminate debit card surcharges, reducing costs for consumers and small businesses.
October 2024: RBA review begins with a paper proposing bans on surcharges on domestic debit cards and some low-cost credit transactions, caps on interchange fees, and greater transparency.
15 July 2025: A consultation paper shows these fees, totalling $4.3 billion annually, are borne mainly by SMB retailers handling many low-value card payments as cash declines.
26 August 2025: The consultation closed, receiving many submissions, which delayed further analysis.
These reforms could reshape payment processing. It may require adjustments to the POS Systems setups.
Why This Matters for Your Business
- Cash is going, and cards now dominate
- The $4.3 billion in annual fees underscores the need for transparent, cost-effective payments.
- This delay extends uncertainty. Stay informed.
Let's see how it plays out.
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.
