RBA Bans Surcharges

Written By Guest User

Bought to you by Kelsey Taylor - Bookkeeper

How businesses can apply surcharges is changing, see what this will mean for you.

From 1 October 2026, businesses in Australia are completely banned from applying surcharges when customers pay using eligible debit, prepaid, or credit cards across the EFTPOS, Visa, and Mastercard networks. Merchants must now incorporate the cost of these card payments into their overall product pricing instead of passing it to the consumer. 

Exemptions:

• Alternative Electronic Payments: Processing fees for payment methods like PayPal, Diners Club, and Buy Now Pay Later (BNPL) services are not legally bound by this specific RBA ban.

• Direct Bank Transactions: Transactions processed via BPAY or direct bank transfers do not fall under the new restrictions. 

Permissible Business Surcharges:

• Operational Service Fees: General booking fees or service charges remain legal, provided they apply equally to all payment methods (including cash) and are clearly included in upfront advertised pricing. 

• Timing-Based Surcharges: Standard weekend, public holiday, or late-night surcharges used by hospitality and service industries are completely exempt. 

With around 16% of small businesses in Australia recouping costs of doing businesses through on charging surcharges this is going to be a hit to the bottom line. Make sure you review your pricing between now and end of September to ensure this cost has been considered in your pricing! 

Find out more here - https://squareup.com/au/en/the-bottom-line/managing-your-finances/rba-card-surcharging

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