No More Card Surcharges? What Australia’s October 1 Change Means for Everyday Shoppers
You order a coffee for $5.50, tap your card, and somehow the amount on the terminal is a little higher than the price you just saw.
It is a small difference, but it is something Australians have become very familiar with. From 1 October 2026, that everyday checkout experience is about to change.
1. What changes on October 1?
The Reserve Bank of Australia has completed a major review of card payment costs and surcharging.
From 1 October 2026, eftpos, Mastercard and Visa will introduce rules preventing businesses from adding a separate surcharge simply because a customer pays with their cards.
In practical terms, if an item is advertised at $10, you should no longer reach the card terminal and find an extra card surcharge added just because you tapped your card.
2. Which cards are included?
The change covers eftpos, Visa and Mastercard, including the relevant debit, credit and prepaid cards.
American Express and UnionPay have also announced that they will remove surcharging from 1 October 2026. PayPal has announced a similar change, with its no-surcharge rule taking effect from 5 October.
3. Does this mean shopping will be cheaper?
Not necessarily every time.
Businesses will still have costs for accepting card payments. Instead of charging those costs separately at checkout, some businesses may choose to include them in their overall prices.
So the biggest everyday difference may be price transparency: the advertised price should more closely reflect what you actually pay at the checkout.
4. Which surcharges can still remain?
This is an important distinction. The change is specifically about card payment surcharges.
Weekend surcharges, public holiday surcharges, booking fees and other service fees are different types of charges and can still apply.
So seeing “no card surcharge” does not automatically mean every extra fee has disappeared.
5. Why is Australia changing the system?
The RBA found that card surcharging was no longer working as originally intended. Cash use has fallen, avoiding card fees has become harder, and surcharge rules can be confusing for both shoppers and businesses.
The Australian Government says consumers currently pay around A$1.6 billion a year in card surcharges, while around 16% of Australian businesses collect them.
The wider reform also includes lower interchange fee caps and greater transparency around payment costs for businesses.
6. What shoppers should remember
For everyday shoppers, the change is fairly simple: from October, paying by the major card networks should no longer mean discovering an extra card fee at the final step.
It does not guarantee that every coffee, meal or online purchase will become cheaper. But it should make one thing easier — knowing what something really costs before you pay.
Sources
Reserve Bank of Australia — Removal of Card Payment Surcharges: FAQs
Reserve Bank of Australia — Review of Merchant Card Payment Costs and Surcharging
Australian Treasury Ministers — Ending Card Surcharges to Help with the Cost of Living
Note: Payment network rules and implementation details can change. This article reflects official information available in September 2026.
