This is general information and does not constitute legal advice. You should consider your individual circumstances in the context of the Regulatory changes with your advisors.
From 1 October 2026, Australian businesses will no longer be able to apply card payment surcharges under new card scheme rules affecting major payment networks, including Visa, Mastercard, eftpos and American Express1. For many merchants, the immediate priority will be ensuring systems and customer payment experiences are updated before the deadline.
But the changes also create an opportunity to take a broader look at payment costs, acquiring arrangements and pricing models. While compliance is the first step, many businesses are using this transition as a reason to reassess how they manage payment acceptance costs.
What is Changing?
The Reserve Bank of Australia has supported reforms that will see card payment surcharging removed from 1 October 2026. Businesses that currently apply card-specific surcharges will need to remove them across all payment channels, including in-store, online and self-service environments. [rba.gov.au], [rba.gov.au]
For some organizations, this may be a straightforward configuration change. For others, surcharge functionality may exist across multiple systems, partners and customer touchpoints.
Review Every Customer Payment Touchpoint
One of the biggest challenges is that surcharging is often implemented in more than one location. Businesses should review whether surcharges are applied through:
- Payment terminals
- Ecommerce websites and checkouts
- Mobile applications
- Self-service kiosks
- IVR payment solutions
- Recurring payment systems
- Internal billing platforms
- Third-party payment providers and integrations
Organizations that rely on multiple technology providers may need to coordinate changes across several systems before October.
Compliance is Only Part of the Conversation
Many merchants originally introduced surcharges to recover some of the costs associated with card acceptance.
With surcharging being removed, businesses are increasingly asking a different question:
How can payment costs be managed going forward?
The answer will be different for every organization, depending on transaction volumes, customer mix, payment methods and existing acquiring arrangements.
A Good Time to Review Payment Costs
As businesses revisit their payment strategy, it may be helpful to review how payment acceptance costs are currently charged and reported.
Different pricing models are available in the market. As businesses review their payment acceptance strategy, it may be worth discussing pricing structures and cost management options with their payment provider.
Understanding your current arrangements can help determine whether they continue to meet the needs of your business as the industry adapts to the new surcharge environment.
Questions to Discuss with Your Payment Provider
Rather than viewing the October deadline purely as a compliance exercise, businesses may wish to use it as an opportunity to review their broader payments strategy.
Questions worth considering include:
- How are payment acceptance costs structured today?
- Are there opportunities to optimize costs?
- Are all payment channels aligned with current business requirements?
- Is the current acquiring arrangement still the best fit for the business?
- Are there new solutions or pricing models that should be evaluated?
Preparing Now Can Reduce Disruption Later
The October deadline may seem some time away, but businesses with multiple payment channels, legacy integrations or third-party providers should begin assessing impacts as early as possible.
By reviewing both compliance requirements and broader payment strategies now, merchants can help position themselves for a smoother transition and avoid unnecessary disruption when the new rules take effect.
Below are answers to some of the most common questions merchants may be asking as they prepare for the October 2026 deadline.
Frequently Asked Questions
Do I need to remove card payment surcharges?
Yes. From 1 October 2026, businesses will no longer be able to apply card payment surcharges and should ensure any existing surcharges are removed before the deadline.
Does this apply to online payments and mobile apps?
Yes. Businesses should review all payment channels, including online checkouts, mobile applications, self-service kiosks, IVR payment solutions and recurring payment systems.
What if surcharges are managed by a third-party provider?
Merchants should review all payment systems, including those managed by software vendors, ecommerce platforms, integration partners and other third parties, to ensure surcharges are removed before the implementation date.
Can I charge a service fee instead?
Potentially, but it cannot simply be a renamed card surcharge. Any service fee should be applied consistently regardless of payment method, and businesses should seek their own legal advice before making changes.
Will payment acceptance costs disappear?
No. Businesses will continue to pay merchant service fees and other payment processing costs. However, the reforms are expected to reduce some costs across parts of the industry.