From 1 October 2026, businesses will no longer be able to add card payment surcharges to Visa, Mastercard, eftpos and American Express transactions under new no-surcharge rules being introduced by the major card networks. For NSW businesses that currently pass card processing costs directly to customers, now is the time to review pricing and payment systems.
The changes follow the Reserve Bank of Australia’s review of merchant card payment costs and surcharging. The RBA changed its standards to allow designated card networks to introduce no-surcharge rules, and Visa, Mastercard and eftpos have confirmed they will do so from 1 October 2026. American Express has also decided to remove surcharging from the same date.
This affects businesses across Australia, including retailers, cafés, restaurants, professional services firms and other businesses in Newcastle, Maitland and the Hunter Region that accept card payments.
Key highlights for small businesses
Businesses that currently add a card surcharge should review the following areas before the new rules commence:
- Remove card surcharges from 1 October 2026 – Businesses accepting Visa, Mastercard, eftpos or American Express will not be able to continue adding a separate surcharge for customers using those payment types under the new network rules.
- Current rules still apply until 30 September – Until the change begins, businesses that surcharge must continue to follow the existing rules, including ensuring a surcharge does not exceed the cost of accepting that payment type.
- Check EFTPOS terminals and online payment systems – Businesses should contact their payment provider to confirm whether surcharge functionality will be automatically disabled or whether settings need to be changed manually. The RBA says many large payment providers intend to remove the functionality around 1 October.
- Update menus, websites and signage – References to card surcharges should be removed from menus, invoices, price lists, booking pages, websites, apps and point-of-sale signage where applicable. The ACCC recommends reviewing customer-facing materials before the change.
- Review your overall pricing – Businesses can still recover legitimate card acceptance costs through their overall prices. The ACCC confirms businesses may incorporate these expenses into the prices of their goods or services rather than charging a separate card surcharge.
- Do not simply rename the surcharge – Calling a card surcharge a “service fee” or another name does not necessarily avoid the rules. The ACCC warns that businesses should not disguise a card payment surcharge as another fee and that misleading pricing may breach consumer law.
The changes do not prevent legitimate fees that are separate from the customer’s choice to pay by card. For example, weekend and public holiday surcharges in hospitality, delivery fees and genuine booking or service fees may still apply, subject to existing consumer law and price-display requirements.
What this means for your business
For businesses that currently recover all or part of their merchant fees through a card surcharge, the change may affect margins and pricing.
A useful first step is to review how much your business currently pays to accept different payment methods. Check merchant statements, payment gateway charges and terminal costs, and consider the overall effect those costs have on your products or services.
The RBA is also reducing certain interchange fee caps from 1 October 2026. It expects these changes to put downward pressure on card acceptance costs, with small businesses potentially benefiting because they have historically tended to pay fees closer to existing caps. Actual savings will depend on the payment provider, pricing plan and transaction mix used by each business.
Businesses should avoid automatically increasing every price by the amount of the old surcharge without reviewing the numbers first. Instead, consider the total merchant costs being incurred, expected changes from your payment provider, sales volumes and existing margins.
It may also be worth comparing payment providers. Further payment-fee transparency requirements are being introduced, including publication requirements for card networks and large acquirers from late October 2026. These reforms are intended to make it easier for businesses to compare payment costs.
For Newcastle, Maitland and Hunter businesses, reviewing merchant fees alongside cash flow, pricing and bookkeeping records can help ensure the change is incorporated into the business without overlooking its effect on margins.
Need help reviewing the financial impact on your business?
Bottrell Accounting can assist businesses with bookkeeping, accounting, cash-flow analysis and business advisory services. If you are unsure how the card surcharge changes may affect your pricing or margins, consider reviewing your figures before the new rules commence.
This article provides general information only. Payment arrangements, contracts and pricing structures differ between businesses. Consider obtaining advice relevant to your circumstances and confirming implementation requirements with your payment service provider.
