If you’ve ever been frustrated by an extra fee appearing when you pay with a credit or debit card, there’s some good news on that front. A ban on card surcharges is now in effect, meaning consumers will no longer pay additional fees when using Visa, Mastercard or eftpos networks.
The Reserve Bank of Australia (RBA) announced the changes in March, after a review found that card surcharges had become increasingly difficult for consumers to avoid, as card payments are now the most common way Australians pay for everyday goods and services.
American Express, UnionPay and PayPal have also agreed to remove card surcharges from 1 October 2026. However, these providers are not currently subject to formal regulation by the RBA.
The changes are designed to make prices simpler and more transparent for consumers because it means fewer surprises at the checkout, greater transparency about the cost of purchases and more confidence that the advertised price is the amount you will actually pay.
The Australian Competition and Consumer Commission (ACCC) has also confirmed that businesses can legally offer discounts to customers who pay by cash. However, businesses must ensure that any displayed price reflects the full amount a customer would pay without the discount.
It's important to understand that not all extra charges are being removed. The ban only applies to fees charged for paying by card.
Weekend surcharges, public holiday surcharges, booking fees and other service-related charges may still apply, provided they comply with the Australian Consumer Law.
Businesses cannot avoid these rules by renaming a card surcharge as an ‘admin fee’, ‘processing fee’ or ‘service fee’ if it is effectively being charged because a customer pays by card.
Any surcharges must be clearly disclosed upfront and must not be misleading or deceptive.
If you’re concerned a business is continuing to charge a card payment surcharge, you can raise it directly with the business. You can also raise it with the relevant card network, or the business’s payment service provider (if known).
For further information or advice, contact Consumer Protection on 1300 30 40 54.