Australia bans card payment surcharges from Oct 1: Here's What the RBA changes mean

In a major update, Australians will no longer be hit with pesky card payment surcharges starting October 1, bringing a massive win for everyday shoppers and diners. Driven by sweeping reforms from the Reserve Bank of Australia, this ban fundamentally changes how transactions are handled at the register.

Under the new rules, the price you see on the shelf or menu is the exact price you pay. Consumers will completely avoid unexpected extra fees—often ranging from one to two percent—just for tapping or inserting a debit, prepaid, or credit card across major networks like eftpos, Mastercard, Visa, and American Express.

However, it is important to note what the ban does not cover. Businesses can still apply traditional weekend or public holiday surcharges to help cover higher staff wage rates, and separate booking or service fees may still appear on transactions.

Labor had promised to eradicate surcharges on debit card payments as one of its cost-of-living measures.

The RBA went a step further: after an 18-month review of Australia’s payment system, it announced a ban on surcharges for both debit and credit cards payments.

While some retailers might slightly adjust their base prices to absorb merchant processing costs, the RBA has simultaneously pushed to lower underlying wholesale banking fees. 

Ultimately, the ban delivers long-overdue pricing transparency, giving shoppers absolute peace of mind that their digital payments will never carry hidden checkout penalties.