New fees, higher costs: Card surcharges are ending – how will it affect the way you pay?
News Source
•Tue, 29 Sep 2026 09:08:59 GMT
📰 What Happened
Australia will ban surcharges on credit and debit card payments from Thursday. That means shoppers will no longer pay an extra fee at the checkout for paying by card.
But the change does not stop there. Some businesses are already reacting. An after-school care provider has stopped taking card payments, and a school canteen set a $10 minimum for card use.
🔍 The Backstory
Surcharges were meant to cover the cost of processing card payments. Now businesses say they must find other ways to handle those costs. Many are expected to raise prices instead. Banks are also trimming cardholder benefits to cut their own costs.
The Reserve Bank and the consumer watchdog say businesses can still guide customers toward other payment methods by offering discounts, such as for cash or PayID, rather than adding a surcharge.
🎯 Why It Matters
This affects how much you pay every time you shop. Prices might rise even without a surcharge, and you may need to check whether your favourite shop still takes cards.
Australia will ban surcharges on credit and debit card payments from Thursday. That means shoppers will no longer pay an extra fee at the checkout for paying by card.
But the change does not stop there. Some businesses are already reacting. An after-school care provider has stopped taking card payments, and a school canteen set a $10 minimum for card use.
Surcharges were meant to cover the cost of processing card payments. Now businesses say they must find other ways to handle those costs. Many are expected to raise prices instead. Banks are also trimming cardholder benefits to cut their own costs.
The Reserve Bank and the consumer watchdog say businesses can still guide customers toward other payment methods by offering discounts, such as for cash or PayID, rather than adding a surcharge.
This affects how much you pay every time you shop. Prices might rise even without a surcharge, and you may need to check whether your favourite shop still takes cards.