The RBA is banning card surcharges. Here's what it means for your business.
On 31 March 2026, the Reserve Bank of Australia announced landmark reforms to how card payments work in Australia. From 1 October 2026, surcharging card payments is banned. This is the biggest change to EFTPOS in two decades.
What's actually changing
The RBA's Payments System Board concluded that the two-decade-old surcharging framework "is no longer achieving its intended purpose." Three specific changes are coming in two phases.
1 October 2026
Surcharges banned on domestic cards
Merchants can no longer apply a surcharge on payments made with eftpos, Mastercard, or Visa (debit, prepaid, or credit). American Express is excluded from this phase. Any existing surcharge settings on your terminal or POS system must be turned off.
1 October 2026
Interchange fee caps reduced
The cap on interchange fees for consumer credit cards drops from 0.80% to 0.30%. Small businesses, who typically pay rates closer to the cap, will see the largest relative reduction in acceptance costs. This is designed to partially offset the revenue lost from removing the surcharge.
1 April 2027
Transparency requirements and foreign card changes
Card networks and large acquirers must publish their fees in a standardised format. Foreign card interchange caps are also adjusted. This second tranche gives the industry time to prepare and update systems.
What this means for hospitality and retail
These sectors are among the most heavily affected. Card transactions dominate in cafés, restaurants, bars, and retail. Many operators have been recovering acceptance costs through a visible surcharge. That option disappears on 1 October.
The critical question is not "do I need to turn off surcharging?" (the answer is yes, it's mandatory). The critical question is: are my underlying rates good enough that I can absorb the cost without it killing my margin?
The RBA estimates that the interchange fee reductions will reduce merchant acceptance costs by approximately $910 million per year across Australia. That relief is real, but it flows unevenly. Businesses on older, higher-rate plans with major banks may not see the same benefit as those on modern flat-rate or negotiated structures.
The maths for a typical venue
Consider a café doing $60,000/month in card sales on a 1.5% blended rate. That's $900/month in acceptance costs. If they've been recouping this via a 1.5% surcharge, they've effectively been paying $0 net. From October, that $900 is a real cost to the business every month, or $10,800/year.
Moving to a provider at 1.0% flat saves $300/month. At 0.9%, it's $360/month. That's why reviewing your provider now matters.
Try the Calculator with Your Own NumbersWhat you should do before October
- 1
Review your current EFTPOS transaction rate. Call your provider or check your merchant statement. If you don't know what rate you're on, you're almost certainly not on the best one.
- 2
Check your POS system for surcharge settings. Your point-of-sale software may have its own surcharge configuration separate from your terminal. Both need to be turned off.
- 3
Compare your current rate against what's available. Use HEFTE's comparison page as a starting point. A 0.3–0.5% difference in rate can be thousands of dollars per year for a busy venue.
- 4
Consider your POS integrations. Not all EFTPOS providers integrate cleanly with all POS systems. If you're on H&L, Lightspeed, or Impos, this matters.
- 5
Take the HEFTE quiz to get matched to a HEFTE referral partner — or visit All Providers to compare every major Australian EFTPOS provider.
Key dates
1 October 2026
Surcharge ban + domestic interchange cap reductions
1 April 2027
Foreign card caps + mandatory fee transparency
By the numbers
$1.2B
Annual surcharges currently paid by consumers
$910M
Estimated annual reduction in merchant acceptance costs
0.30%
New credit card interchange cap (down from 0.80%)
1 Oct
Date your surcharge settings must be switched off
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This page provides general information about EFTPOS in Australia. It is not financial, tax, legal, or professional advice. Rates and product features change. Confirm current rates and terms directly with the provider before making a decision.