US EditionAustralia to ban surcharging on payment cards, deliver savings worth A$2.5 bln
The reforms will save consumers A$1.6 billion and businesses A$910 million a year, while making card pricing more transparent.
- On Tuesday, the Reserve Bank of Australia announced a ban on debit and credit card surcharges effective October 1, 2026, while also lowering interchange fee caps to reduce business costs.
- Following 18 months of consultation with more than 250 written submissions and 150 stakeholder meetings, the RBA determined the surcharge framework introduced two decades ago no longer steers consumers toward efficient payment choices.
- The RBA estimates dropping the domestic interchange cap from 0.8 to 0.3 per cent will save businesses about $910 million annually, with 16 per cent of Australian businesses currently applying surcharges.
- Brad Kelly of the Independent Payment Forum warned small businesses may pass transaction costs to consumers through higher prices, while chief executive Stephen Ferguson argued the decision abandons small businesses amid cost-of-living pressures.
- Payment transparency measures and an interchange cap for foreign cards take effect April 1, 2027, as the RBA plans a mid-year public consultation on mobile wallets and 'buy now pay later' services.
47 Articles
47 Articles
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Card surcharges set to disappear as markets end tough March on positive note
A major shake-up to how Australians pay is on the way, with the Reserve Bank moving to scrap $1.6 billion in card surcharges and shift costs into upfront pricing. In this episode of SBS On the Money, Ricardo Gonçalves breaks down what it means for households and businesses, with insights from Finder’s Graham Cooke, while Chris Brycki from Stockspot unpacks a rebound on the ASX after a volatile March that delivered the market’s worst monthly resu…
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