When you tap your card to pay at a cafe, do you ever notice the total amount rising slightly? This is called a credit card surcharge, and up until now, it’s been a normal part of paying for things in Australia.
Since 1 October 2026, most of these charges have been banned. This is the rundown on what’s changed, who it affects and what you need to know.
What is a credit card surcharge?
A surcharge is an extra fee a business adds when you pay by card. It is meant to cover the cost the business pays to accept your payment.
What is the credit card surcharge ban?
From 1 October 2026, businesses can no longer add this fee when you pay with EFTPOS, Visa or Mastercard. American Express has also removed surcharging, but this was not specifically covered by the ban. The ban covers credit, debit and prepaid cards.
The Reserve Bank of Australia (RBA) introduced the ban as a response to the old system of surcharging, which they said ‘no longer works as intended’. Many businesses just charged the same surcharge on every card, and the rules were hard to enforce.
Most people also want the price they see to be the price they pay. To help businesses, the RBA cut the fees banks charge them for card payments.
Who does the credit card surcharge ban apply to?
The ban applies to businesses that accept these cards, including small businesses like cafes, hairdressers and tradies. There are currently no exceptions to the rule, although card networks can decide if they want to make an exception for certain businesses.
A card payment surcharge does not include a surcharge that applies regardless of payment method, such as service fees, weekend or public holiday surcharges. Businesses also cannot rename a card surcharge as something else.
What does this mean for international students?
For most students, it means the price you see is the price you pay. Whether you are paying for groceries, a haircut or a meal out, you should not need to check for a card fee at the counter.
It also makes paying by card easier if you do not carry much cash. According to the ABC, before the ban, about 20 per cent of consumers said they used cash to avoid surcharges.
Some surcharges may still appear for a short time while businesses update their payment systems. If this happens, the card networks and payment providers are responsible for fixing it.
Businesses can raise their prices to recover the cost of accepting card payments, but they’re not able to give false or misleading information about prices or the reasons for any price increases.
Some businesses are happy to offer a discount for paying by cash or PayID, so make sure to check if there are any notices or signs up by the checkout counter. It’s worth asking if you’re not sure!
What to do next
These new surcharge rules might be a bit of an adjustment for your everyday spending, and the details may keep changing as the card networks and businesses get used to it. If you see a card surcharge after the 1st of October, let the business know. You can then report it to your card network, or to the ACCC through its card surcharges page.
If you still have questions or need more information, check out the RBA’s list of frequently asked questions.
