Australia to End Card Surcharges in 2026

Australia's central bank announced on Tuesday that it will eliminate surcharges on debit and credit card payments starting October 1, 2026, following a yearlong review that found the existing system ineffective in promoting efficient consumer choices.

The Reserve Bank of Australia (RBA) concluded that the surcharging framework, established more than two decades ago, no longer serves its purpose amid widespread card usage and declining cash transactions. Businesses have increasingly applied uniform surcharges across all card types, complicating enforcement and undermining the system's goal of guiding consumers toward lower-cost payment options. The changes will apply to transactions on eftpos, Mastercard, and Visa networks, though American Express operates under a separate agreement and remains unaffected.

An RBA survey of 3,000 consumers revealed that about three-quarters consider surcharges unnecessary and favor their elimination. Officials estimate the move will save Australian shoppers approximately A$1.6 billion annually, out of the A$1.8 billion in total surcharges currently collected on these networks. The bank emphasized that most consumers prefer prices to include all...