Australia to Axe Card Surcharges, Customers to Save $1.6 Billion

The surcharge ban will apply to debit, credit, and prepaid cards across EFTPOS, Mastercard, and Visa networks.

A stock image showing credit card payment at a cafe in Brisbane, Australia, on May 15, 2019. AAP Image/Dan Peled

Australians will no longer pay surcharges on debit or credit card payments from October 2026, after the Reserve Bank of Australia (RBA) confirmed a sweeping overhaul of the payments system.

The Reserve Bank’s Payments System Board concluded in its final report released on March 31 that removing surcharges, lowering interchange fees, and increasing transparency would save customers about $1.6 billion per year (US$1.09 billion).