For years, Australians have complained about one small but frustrating cost when paying for everyday purchases. Whether it’s coffee, groceries, or dinner at a restaurant, those extra card surcharges have become a familiar annoyance. Now, a major change is coming — but the real winners may not be who many people expect.
RBA Moves To Ban Card Payment Surcharges
The Reserve Bank of Australia (RBA) has confirmed that surcharges on credit and debit card payments will be banned from October 1. The decision follows an 18-month consultation process involving banks, businesses and consumer groups.
Under the new rules, businesses will no longer be allowed to add a separate fee when customers choose to pay by card. The RBA says the goal is to simplify payments and eliminate charges that many consumers find confusing or unfair.
To support the change, the central bank will also reduce interchange fee caps — the fees paid between banks when a card transaction takes place.
Why Visa And Mastercard May Benefit
Despite the consumer-friendly announcement, payments expert Brad Kelly, founder of the Independent Payments Forum, says to Sky News that the biggest beneficiaries may actually be the major card networks.
According to Kelly, companies like Visa and Mastercard are unlikely to be affected by the surcharge ban.
“These networks are the winners,” he said, noting that the RBA’s changes do not regulate scheme fees, which are charges that card networks impose on banks and financial institutions.
Those costs often end up being passed along the payment chain and eventually absorbed by businesses or consumers.
Concerns From Small Businesses
Small business groups have raised concerns that removing surcharges could push additional costs onto merchants.
Many cafés, restaurants and retailers operate on very slim profit margins. If businesses are no longer allowed to charge a surcharge to offset card fees, they may have little choice but to increase their overall prices.
Kelly explained that a typical café might operate on margins of only around three per cent. If card processing fees account for roughly half that margin, the financial pressure can quickly become significant.
In that situation, businesses may simply build the cost into menu prices rather than charging a visible fee.
Changes To Card Transaction Fees
As part of the reform, the RBA will lower the interchange fee cap for consumer credit cards from 0.8 per cent to 0.3 per cent.
Debit card fee limits will also fall slightly, from 0.2 per cent to 0.16 per cent. Foreign-issued cards will face a new one per cent fee cap, while commercial credit card limits will remain unchanged.
The government says the changes could save Australians about $1.6 billion per year, including around $910 million in benefits for small businesses.
Treasurer Jim Chalmers welcomed the move, saying Australians should not be penalised simply for choosing to pay with a card.
Still, as the payment system evolves, experts say the true impact will only become clear once the new rules take effect. For many consumers, the surcharge might disappear — but the cost could quietly show up somewhere else.
