Card Surcharge Ban Australia: POS Setup, Fees, and Public Holiday Rules

What changes under the card surcharge ban?

From 1 October 2026, the Reserve Bank of Australia removes its prohibition on network no-surcharge rules, allowing Visa, Mastercard and eftpos to prohibit surcharges on covered consumer card payments. This does not eliminate card acceptance costs—venues must plan how to absorb merchant service fees into their pricing or operations.

The RBA surcharge FAQ confirms that removing the prohibition on network no-surcharge rules is not the same as removing payment costs. Venues will no longer be able to recoup card-acceptance costs through a separate surcharge on consumer card transactions, but merchant service fees—the interchange and processing charges from acquirers and payment processors—remain a business expense. Australian restaurants, cafes and bars must therefore review their pricing strategy, cost structure and payment mix ahead of the October 2026 deadline.

This is a practical summary and not legal or financial advice. For regulatory or compliance questions, consult the ACCC or your payment provider.

Which cards face the surcharge ban?

From 1 October 2026, the RBA-designated networks of eftpos, Mastercard, and Visa will enforce a ban on surcharging for consumer credit, debit, and prepaid cards. While American Express credit is not RBA-regulated in the same manner, the network has committed to participating in the surcharge removal on the same effective date.

The RBA identifies eftpos, Mastercard and Visa as designated networks and describes the changes as applying to consumer card surcharges. Its FAQ also confirms that the changes do not cover weekend or public holiday surcharges, booking fees or service fees. American Express is not included among the RBA-designated networks; its stated commitment is separate from the RBA changes.

Operators should focus on transitioning to all-inclusive pricing models across all major networks by October 2026, as technical disablement of brand-specific surcharges will largely be managed by payment providers.

Which fees stay outside the surcharge ban?

The card surcharge ban from 1 October 2026 applies only to an extra fee charged for paying with a particular card. It does not, by itself, prohibit weekend or public holiday surcharges, booking fees, service fees, or other non-card-specific charges. These fees remain distinct categories and are not covered by the card surcharge removal described in the RBA surcharge FAQ.

However, do not treat this as blanket permission to charge any fee without caution. All fees that remain outside the card surcharge ban must still comply with Australian Consumer Law and relevant industry guidance. For example, detailed guidance on disclosure, calculation, and compliance requirements applies to public holiday surcharges regardless of the card surcharge rule change. If you have questions about the legality or disclosure of a specific fee type, consult the ACCC or the RBA directly.

How should venues absorb card fees?

When card surcharges are no longer permitted from 1 October 2026, you must cover the payment-processing cost through one of three methods: absorb it into your existing margins, adjust prices on high-volume items, or review prices across the full menu. The choice depends on your current fee structure, profit margins, and customer sensitivity to price changes.

Before estimating your costs or considering menu price changes, review this guide to reducing credit card merchant fees in Australia. It explains how to compare providers, identify fees in merchant agreements and consider negotiation options.

Start by calculating your actual payment cost using recent merchant statements—treat any industry estimate such as 1–1.5% as indicative only, not a substitute for your own data.

Cost estimation: Pull your last three months of merchant statements from your payment provider or bank. Divide total merchant service fees by total card transaction value to derive your effective rate. Compare your acquirer's complete merchant service fees—including interchange and processing charges—rather than comparing interchange alone. Interchange is the fee paid between a cardholder's bank and the merchant's bank for processing a card transaction. Cross-reference your statements against your acquirer's fee schedule to confirm accuracy and identify any hidden charges.

Item-level margin review: If you are considering price increases, use your POS data to rank items by margin and transaction frequency. High-turnover items with healthy margins are less risky to adjust; low-margin items may require larger percentage increases to offset card costs, risking customer pushback.

Price changes may affect customer demand, so test adjustments before applying them across your venue. This article is operational guidance, not financial or business advice; consult an accountant or business adviser if you need advice tailored to your circumstances.

Monitor your merchant statements after the ban takes effect on 1 October 2026 to track whether fees remain consistent or adjust with transaction patterns.

How should venues prepare for the surcharge ban?

From 1 October 2026, Australian hospitality venues need to disable automatic card surcharges across both their POS system and physical payment terminals. A structured preparation timeline ensures no surcharge remains active when the regulations take effect.

Pre-implementation checklist:

• Confirm network and acquirer instructions – Contact your payment acquirer and card networks (Visa, Mastercard, eftpos) to clarify which surcharge settings apply to your merchant account and any specific configuration dates.

• Identify surcharge settings in your POS – Log into your POS settings and document where surcharges are currently applied (e.g., card type, dining type, or order channel). Note that surcharge and service-charge settings may operate independently; confirm which applies to your card payments.

• Identify surcharge settings in your EFTPOS terminal – Check your physical terminal or gateway interface for any surcharge percentage or fee rules tied to payment methods. These are often separate from POS settings. If you cannot find the setting, contact your payment acquirer or terminal provider to confirm where it is and how to disable it. POS and terminal changes may need to be made separately.

• Schedule removal for 1 October 2026 – Set a target date to disable both POS and terminal surcharges. Confirm with your POS provider and acquirer that both systems are updated on the same date to avoid inconsistencies.

• Update menus, signage and ordering channels – Remove surcharge references from printed menus, in-venue signage, and all digital ordering touchpoints (website, app, third-party platforms). Ensure digital menus sync with POS menu settings.

• Decide how to absorb costs and brief staff – Plan whether you will adjust menu prices, absorb the cost in existing margins, or use a combination of tactics. Train all staff to explain the change to customers without citing false compliance reasons.

• Review your merchant plan – Request an updated merchant statement from your acquirer to confirm current card mix and fees, and understand which payment types will be affected.

• Check statements and fee reporting after implementation – Monitor your merchant statement in the weeks following 1 October 2026 to confirm surcharge charges have ceased and that fees are being applied correctly.

Tell your POS provider and acquirer explicitly that you need confirmation both systems are configured correctly—do not assume that updating one automatically updates the other. Review the RBA implementation timeline for any final regulatory clarifications closer to the date.

Card Surcharge Ban Australia FAQs

Q: Are EFTPOS, Visa, and Mastercard all included in the card surcharge ban in Australia?

Yes, consumer debit, credit, and prepaid cards across eftpos, Visa, and Mastercard are covered by the ban taking effect on 1 October 2026. While American Express is not regulated in the same way by the RBA, it has also committed to removing card surcharges on the same date. Commercial or business cards are not explicitly covered under the main consumer card rules.

Q: Can Australian restaurants still charge a public holiday surcharge after the card surcharge ban starts?

Yes, restaurants and cafes can still apply public holiday and weekend surcharges because the ban applies only to fees charged for using a specific payment method. Holiday, weekend, booking, and delivery fees remain permitted under Australian Consumer Law, provided they are justified by operational costs like penalty rates and are clearly disclosed to diners on menus and signage. For more detail on justification and disclosure, read this guide to public holiday surcharges in Australia. If you have questions about whether your specific fee structure complies, consult the ACCC.

Q: Does the card surcharge ban eliminate merchant service fees for hospitality venues?

No, the ban does not eliminate or reduce merchant service fees charged by banks and payment processors. Venues must still pay standard interchange, processing, and merchant fees for processing consumer card transactions. Because restaurants can no longer pass these acceptance costs directly to customers as a separate surcharge line item, they must absorb the fees or adjust menu prices.

Q: How do venues change POS and terminal settings to disable automatic surcharging?

Hospitality operators must disable card-specific surcharge rules across both their point-of-sale software and physical EFTPOS payment terminals. Because POS configurations and terminal surcharge settings often operate independently, updating one does not automatically update the other. Venues must coordinate with their payment acquirer and POS provider to ensure all brand-specific card surcharges are fully removed by 1 October 2026.

Q: How can a restaurant absorb card fees and protect profit margins when the ban kicks in?

Venues can protect margins by adjusting prices on high-volume items, reviewing prices across the entire menu, or absorbing the cost into existing profits. Operators should analyse recent merchant statements to determine their true effective card processing fee. From there, POS sales data can help identify high-turnover, healthy-margin bestsellers where modest price tweaks can offset merchant costs with minimal customer resistance.