From 1 October 2026, businesses across Australia can no longer add a surcharge to card payments. The Reserve Bank of Australia confirmed the change in its Conclusions Paper on 31 March 2026. Here is what it means for your business, and what is worth doing before the date arrives.
What has the RBA announced?
From 1 October 2026, surcharging is removed across the designated card networks, being eftpos, Mastercard and Visa, and covering debit, prepaid and credit cards. Rather than adding a card fee at the checkout, businesses will display a single total price.
The change reaches further than the designated networks. American Express, JCB, Discover, Diners Club and UnionPay have all since announced they will self ban, so in practice the same rule applies across every card type your customers are likely to present.
The reform does not require legislation. The card networks enforce it through their merchant and acquirer agreements, and acquirers, including terminal providers, have been directed to remove surcharging functionality from that date. In other words, from 1 October the option to add a surcharge will simply no longer be there.
Why is this happening?
Surcharging was introduced so that customers could be steered towards cheaper ways to pay. That logic held while cash was a common alternative at the counter.
As cash use fell, most businesses settled on a single rate applied to every card, which left customers with no cheaper option to move to. The RBA also found that the rules had grown complex and confusing, and that surcharges were often poorly disclosed at the point of sale. Removing them is intended to make the price a customer sees the price they actually pay.
Do card payments become free?
No, and this is the part most worth being clear about.
What stops on 1 October is the surcharge your customer pays. What continues is the merchant service fee your business pays to process a card payment. That cost does not disappear. It stops being itemised for the customer and sits inside your pricing instead.
Any planning you do between now and October should start from that distinction, because it is the one most likely to catch a business out.
What are your options?
The RBA has been clear that businesses can either absorb the cost of accepting cards or build it into their prices, in the same way they cover a lease, stock and wages. Both are allowed, and neither creates a compliance problem.
If you build it into your pricing, the price on the board becomes the price paid, with no separate card line at the checkout. This tends to suit businesses where a small, even adjustment across a menu or price list is straightforward to make and easy to explain.
If you absorb it, nothing changes for your customers and there is nothing to explain. The cost comes out of your margin instead. It is worth remembering that around 85 per cent of small merchants do not surcharge today, so for a large number of businesses this is already the position and 1 October will pass without any action at all.
What should you do before 1 October?
If you surcharge today, the practical work is smaller than it sounds, but it is worth starting early. A surcharge can be switched on in more than one place, and the settings do not all live in the same system.
Start with your latest statement, which shows what you actually pay to accept cards. That figure is the starting point for any pricing decision, and plenty of businesses find they have not looked at it closely in a while.
From there, work through where a surcharge might be set. Your terminal is the obvious one, but check your POS, your online checkout and any in app payments as well. Then look at what your customers see, because from 1 October the price on the shelf, the menu or the checkout screen needs to be the full amount they pay.
Finally, deal with the things that mention a surcharge out loud. Signage, receipts, checkout screens and POS prompts will all need updating or removing, and your team will need to know what has changed so they can answer the question when a customer asks.
How Live Payments can help
We have built a few things to make the transition easier, and the first of them is ready now.
The menu price calculator works out new prices so that your customers pay about the same as they do today and your revenue stays level once surcharging is removed. You set your current surcharge rate, choose how you want prices rounded, and it does the rest. You can open the calculator here.
Two more tools arrive on your terminal in the coming weeks. Service fee lets you name your own fee and set it by percentage or fixed amount, for the costs that sit outside your base prices, such as a fuel levy, a weekend or peak period fee, or special handling. Cash discount works the other way. If you build the cost of card processing into your prices, your cash customers end up carrying a cost they never created, and cash discount hands it back at the terminal.
Your rate does not change on 1 October. If the cost no longer works for your business once surcharging is gone, we have room to move and can look at your rate and the other plans available to you.
Frequently asked questions
Does this apply to my business?
Yes, if you take card payments in Australia. The removal of surcharging applies to every business, not just yours, which means your competitors are working to the same date.
Do I have to do anything before 1 October?
If you currently add a card surcharge, yes. You will need to decide how you want to cover the cost of accepting cards. If you already absorb the cost, there is nothing you need to change. If you are using a POS, you will need to contact your provider to ensure they have also disabled surcharge.
Will my surcharge switch off automatically?
We will remove surcharging from your Live Payments terminal on 1 October 2026. A surcharge can also be set in your POS, your online checkout or an app, so it is worth checking each of those yourself rather than assuming they all update together.
What happens if I do nothing?
From 1 October the option to add a surcharge will not be there. Your prices stay as they are, and the cost of accepting cards comes out of your margin. That is a valid choice, but it is better made deliberately than by default.
Does my rate change on 1 October?
No. What you pay to accept cards stays as it is. The only thing that stops is the surcharge your customer used to pay.
Which cards are covered?
eftpos, Mastercard and Visa are covered by the RBA decision, across debit, prepaid and credit cards. American Express, JCB, Discover, Diners Club and UnionPay have announced they will self ban from the same date.
Can I still charge a weekend or public holiday surcharge?
Yes. The change applies to card surcharges. A weekend, public holiday or other service based surcharge is a different thing and is not affected, provided it is disclosed clearly.
I drive a taxi. Does this affect my fares?
Taxi fares sit outside the new rules. Your terminal, the fares you charge and your settlements carry on exactly as they do today. If you also hold a separate merchant account with us, different rules may apply to that account and we will write to you about it separately.
What about bill payments?
Bill payments also sit outside the new rules, and nothing changes.
How do I work out my new prices?
The menu price calculator does this for you. Set your current surcharge rate, choose how you want prices rounded, and it works out new prices so your customers pay about the same and your revenue stays level.
Can I still charge other types of surcharges or fees?
Yes. Fees that are separate from paying by a particular card are not affected. Service fees, booking fees, delivery fees and similar charges can continue as they are today.
How should I display prices once card surcharging is removed?
Build the cost of accepting cards into your prices rather than adding a separate charge at the checkout. In practice that means updating menus, signage, websites and apps, updating advertising and price lists, and making sure card surcharging is switched off on your terminal and any other payment systems. Your payment provider can help with the system side.
Can I increase my prices when card surcharges are removed?
Yes. You can build card processing costs into your overall pricing. If you are putting prices up for more than one reason, such as labour or energy costs as well, be accurate with your customers about what is driving the change.
Can I offer a discount if a customer pays a particular way?
Yes. Discounts for a particular payment method, such as cash or PayID, are still allowed. They need to be clearly disclosed before a customer chooses to book, order or pay, and the price you display should be the full amount without the discount, shown just as prominently. Cash discount on your terminal lets you set a percentage that comes off automatically for anyone paying with cash.
Who will enforce the no surcharge rules?
The card networks and payment service providers enforce their own no surcharge rules through scheme rules and merchant contracts, rather than the ACCC. The ACCC and the state and territory consumer protection agencies remain responsible for consumer law, including how prices are represented to customers.
Where can I go for further help?
Your card network or payment service provider can help, and the Reserve Bank of Australia publishes guidance on the reforms. Small businesses can also contact the Australian Small Business and Family Enterprise Ombudsman. You are always welcome to call us on 1300 780 788.
Who can I talk to about this?
Call us any time on 1300 780 788 or email help@livepayments.com. If you would like to review your pricing before 1 October, book a 15 minute call and we can go through the options available to you.
Will you still earn Qantas Points?
Yes. If you are using an eligible Live Payments solution, you continue to earn Qantas Business Rewards points on transactions, regardless of the surcharging changes. The way payment costs are presented to your customers is changing, but the value you get back from your own payment volume is not.
Where to from here
There is time between now and 1 October, and the businesses that handle this well will be the ones that decide early rather than in the last week of September. Work out what you pay today, choose whether you absorb it or build it in, and make the changes across your terminal, your systems and your signage while there is no pressure on the clock.
We will keep this page updated as further detail is confirmed.
