EFTPOS Surcharging Rules in Australia: What's Changing From October 2026?

If a business in Australia currently adds a card surcharge at checkout, that practice has an expiry date. The Reserve Bank of Australia finalised its reform to merchant card payment costs on 31 March 2026, and the headline change is straightforward: from 1 October 2026, surcharging on eftpos, Visa, and Mastercard transactions will no longer be permitted. This guide breaks down exactly what's changing, what the current rules still require until then, why the RBA made the call, and what businesses — including those also operating across the Tasman in New Zealand — need to do to prepare.

1. What's Changing on 1 October 2026?

The reform is real, and the timeline is set. Per the RBA's own summary of its Conclusions Paper, card surcharging on both debit and credit cards will end on 1 October 2026 across the eftpos, Mastercard, and Visa networks. American Express has separately confirmed it will remove surcharging from the same date, aligning its treatment with the other major networks even though it sits outside the RBA's direct regulatory scope.Alongside the surcharge ban, interchange fee caps are dropping too — the RBA's conclusions paper confirmed that the consumer credit card interchange cap will fall from 0.8% to 0.3%, effective October 2026, with total savings to consumers and businesses estimated at up to $1.8 billion a year. Non-payment surcharges — a weekend loading or public holiday fee, for instance — aren't affected; the ban applies specifically to the cost of processing the card payment itself.

2. What Are the Current Surcharging Rules (Until October 2026)?

Until the ban takes effect, the existing framework still applies in full. Businesses that surcharge today are bound by a cost-matching rule: a surcharge can't exceed what it actually costs the business to process that specific payment type, and it can only reflect the direct cost of payment processing — not other business expenses like POS software subscriptions. Businesses need to be able to demonstrate that cost if asked, and excessive surcharges can already be reported to the ACCC under current rules. This transition period matters for planning: nothing changes for existing surcharging practices before 1 October, but any pricing or terminal setup decisions made now should account for the deadline rather than assuming current rules carry forward indefinitely.

3. Why Is the RBA Banning Surcharges?

The RBA's stated rationale centers on transparency and competition rather than surcharging being inherently improper. As cash use in Australia has fallen — from roughly 70% of transactions in 2007 to around 15% today — card acceptance costs have become a routine cost of doing business rather than an occasional add-on, and the RBA's view is that folding those costs into advertised pricing gives consumers a clearer picture of what they're actually paying than a surcharge line item does at the point of sale. The lower interchange caps are designed to offset the removal of surcharge revenue, so the reform isn't simply removing a cost recovery option without adjusting the underlying cost businesses are recovering from.

4. How Will This Affect Small Businesses in Australia?

Practically, businesses that currently surcharge will need to fold that cost into advertised prices rather than itemizing it separately, which means reviewing pricing before the deadline rather than after. Terminal providers are expected to remove surcharging functionality from terminals as part of the transition — a change enforced contractually through card network merchant agreements rather than through direct government penalty. Businesses evaluating new terminal hardware in the lead-up to October should factor this into the decision, since a terminal purchased now needs to remain compliant through and beyond the transition; our EFTPOS terminal buying checklist for 2026 covers what else to weigh before choosing hardware in this environment. Mobile and pop-up businesses in particular — food trucks, market stalls, tradespeople — often rely on surcharging more heavily than fixed-location retailers to offset thinner margins, which makes this change worth understanding alongside the broader tradeoffs of mobile EFTPOS adoption.

5. What About New Zealand?

New Zealand has been moving in a similar direction, but the timeline is currently less certain than Australia's. The Commerce Commission introduced the Retail Payment System (Ban on Merchant Surcharges) Amendment Bill in 2025, and it passed its first reading that September, with an in-force date originally expected around May 2026. As of the most recent update available, however, the bill has stalled while the government considers its wider implications, and no confirmed ban date has been locked in. Businesses operating on both sides of the Tasman should treat Australia's 1 October 2026 deadline as confirmed and New Zealand's as still pending, and check for updated guidance closer to any NZ implementation date rather than assuming the two markets will move in lockstep.

6. Preparing an EFTPOS Setup for the Transition

Beyond pricing, the surcharge ban has a practical hardware dimension. Terminals need firmware capable of removing surcharge functionality on schedule, and businesses sourcing new hardware — or working with a provider to update existing fleets — should confirm this is accounted for before the October deadline rather than discovering a gap after the fact.

For businesses or ISVs sourcing terminal hardware directly, compliance requirements extend well beyond the surcharge rule itself. What certifications an EFTPOS terminal needs before entering the Australian market is a reasonable starting point, and businesses working with a China-based manufacturer should raise the surcharge transition requirement explicitly early in the sourcing conversation — it's the kind of detail that's straightforward to accommodate at the specification stage but harder to retrofit once a fleet is deployed. Payment facilitators and acquirers managing updates at scale will find the firmware rollout question particularly relevant when evaluating white-label EFTPOS terminal ODM arrangements.

7. FAQs

Q1. When exactly does the EFTPOS surcharge ban start in Australia?

1 October 2026. Current surcharging rules, including the cost-matching requirement, remain in effect until that date.
Q2. Does the surcharge ban apply to all payment types?

It applies to eftpos, Visa, and Mastercard debit, credit, and prepaid card transactions, with American Express voluntarily aligning from the same date. Non-payment-related surcharges, such as public holiday loadings, are unaffected.
Q3. Can businesses still charge more for card payments after October 2026?

No — card acceptance costs will need to be absorbed into advertised pricing rather than itemized as a separate surcharge. Businesses can still adjust their overall pricing strategy, just not through a checkout-stage card surcharge.
Q4. Is the surcharge ban the same in New Zealand as in Australia?

Not currently. Australia's ban is confirmed for 1 October 2026. New Zealand's equivalent legislation has been progressing but has reportedly stalled as of mid-2026, with no confirmed implementation date yet.
Q5. Who enforces the surcharge ban once it takes effect?

In Australia, enforcement runs primarily through card network merchant agreements — card schemes such as eftpos, Visa, and Mastercard are expected to enforce the rule contractually with acquirers and terminal providers, rather than the ACCC pursuing individual businesses directly.