RBA Card Surcharge Ban: What it Means for Your Business

1 October brings one of the biggest changes to business payments in decades.

From 1 October 2026, businesses will no longer be able to apply surcharges to Visa, Mastercard and EFTPOS transactions as part of wider payment reforms introduced by the Reserve Bank of Australia. At the same time, interchange fees are being reduced and payment providers will be required to provide greater transparency around their pricing.

What Will the RBA Card Surcharge Ban Mean for Your Business?

The answer will differ from business to business, but one thing is clear. The changes are creating a valuable opportunity for businesses to review their payment arrangements, pricing strategies and customer experience. 

What Changes Under the New Payment Reforms?

While headlines have largely focused on the removal of card surcharges, the broader reforms are designed to reshape how payment costs are allocated throughout the payment system. The reforms include reductions in interchange fee caps and enhanced transparency requirements for payment providers, both of which are intended to improve competition and reduce costs over time.  

For businesses, this means now is an ideal time to better understand the true cost of accepting payments and review existing merchant service fees. 

Many businesses have not reviewed their merchant service fees for years. Others may be surprised to discover significant differences between providers, payment methods and contractual arrangements.

Which Businesses Benefit Most from Reviewing Payment Systems Early?

Businesses that currently impose surcharges will naturally need to consider how those costs are managed going forward. However, the conversation should not simply be about pricing.  

The more valuable questions may be:

• Are we using the most efficient payment provider? 
• Do our current payment arrangements still suit the business? 
• Are there alternative payment methods that could improve customer experience and reduce costs? 
• Does our pricing model continue to reflect how customers want to transact? 

We are already seeing payment providers adapt by promoting lower-cost payment channels such as PayID and direct debit, demonstrating how quickly the payments landscape is evolving.  

How Will the RBA Surcharge Ban Affect Credit Card Rewards Programs?

Another aspect receiving less attention is the impact the reforms may have on credit card rewards programs. 

Because interchange fees help support rewards programs, industry commentators have noted that some card issuers are reviewing points earn rates and card benefits as the reforms take effect.  

For business owners and high-spending consumers who actively use rewards cards, this may be another area worth monitoring over the coming year.

Why Is Now the Right Time for a Business Payments Health Check?

Major regulatory changes often provide businesses with an opportunity to challenge existing arrangements that may have gone unquestioned for years. The removal of card surcharges is one such moment. 

Whether your business operates in professional services, hospitality, retail, property or construction, now may be the ideal time to review: 

• Payment processing costs and  
• Merchant service agreements 
• Customer payment preferences and transaction options 
• Pricing structures and gross profit margins 
• Cash flow management  and collection processes 

For some businesses, the financial impact may be relatively minor. 

For others, a better understanding of payment costs and customer behaviour could generate meaningful savings and improve profitability over the long term. 

How Vincents Can Help 

The end of card surcharges is not simply a compliance change. It may be an opportunity to reassess how your business gets paid. 

If you would like to understand how these reforms may affect your business, our experienced business advisory team can help you review the commercial, operational and cash flow implications of the changes.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.