RBA Confirmed: Card surcharges will be banned from 1 October 2026 — check you're on the right rate →

Questions  /  Cash discount?

Can I still offer a cash discount after the ban?

Short answer

Yes. The 2026 change removes surcharges on eftpos, Mastercard and Visa — it does not ban incentives, so discounts for cash or bank transfer remain allowed. The key is that it must be a genuine discount off a normal price, not a card surcharge dressed up as a “discount” from an inflated price.

Last updated: 30 June 2026

Surcharges out, incentives in

The change starting 1 October 2026 removes the ability to surcharge eftpos, Mastercard and Visa. It is specifically about surcharges — adding a fee for paying by card. Offering a discount for paying another way, such as cash or bank transfer, is an incentive, and incentives are not removed by the change. As general information, cash discounts remain available.

The line between a discount and a disguised surcharge

This is where care is needed. A genuine cash discount is a reduction from your normal advertised price. What you cannot do is inflate your displayed price and then frame the card price as the “real” price — that is effectively a card surcharge wearing a discount label. Set your normal price honestly, then discount from it.

Keep it clear and honest

Whatever incentive you offer should be clearly disclosed so customers understand the price they pay by each method. Misleading price presentation can attract attention under consumer law. Keeping the cash discount simple, genuine and well-signposted is the safe path.

Source: RBA Review of Merchant Card Payment Costs and Surcharging — Conclusions Paper (March 2026).

This page is general information only and is not legal or financial advice. The RBA sets the final rules and timing — confirm current details at rba.gov.au.
Common questions
Related questions
Are cash discounts banned in 2026?
No. The change removes card surcharges, not incentives. Discounts for cash or bank transfer remain allowed as general information.
Can I use a cash discount instead of a card surcharge?
You can offer a genuine cash discount, but it must be a real reduction from your normal price — not a card surcharge relabelled as a discount.
What makes a cash discount a “disguised surcharge”?
Inflating your displayed price and then calling the card price normal effectively turns the discount into a card surcharge, which is not allowed.
Do I have to disclose the discount?
Yes. Make it clear so customers understand the price for each payment method. Misleading price presentation can raise consumer-law issues.
Does this apply to bank transfer too?
Yes. A genuine discount for paying by bank transfer is an incentive and is not removed by the surcharge change.
Keep reading
Can I call it an admin fee or service fee instead? →Can I still charge a weekend or public holiday surcharge? →Can I set a minimum card payment amount instead of surcharging? →Do I stop paying merchant fees after the surcharge ban? →For small business →All questions →
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