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

Questions  /  Do I stop paying fees?

Do I stop paying merchant fees after the surcharge ban?

Short answer

No. The 2026 change removes your ability to pass card costs to customers via a surcharge on eftpos, Mastercard and Visa — it does not remove the merchant fees themselves. You still pay your merchant service fee; the difference is that the cost now sits with your business instead of the customer. Separately, the RBA is cutting interchange caps, which may lower that cost.

Last updated: 30 June 2026

Surcharge removal is not fee removal

It’s the most common misunderstanding about 2026. The surcharge reform is about how the card cost is recovered, not whether the cost exists. Today many businesses add a small percentage at the checkout so the customer covers the card fee. From 1 October 2026, for eftpos, Mastercard and Visa, that surcharge is removed — so the underlying merchant service fee stays with the business unless it’s built into headline prices. Your provider still charges you to accept cards; what changes is that you can no longer pass that specific cost to the customer as a separate line on those networks.

Why your fee may actually fall

There is genuine upside. Alongside removing surcharging, the RBA is reducing the caps on domestic interchange fees from 1 October 2026, and on foreign-issued cards from 1 April 2027. Interchange is a core component of merchant service fees, so lower caps are expected to make accepting cards cheaper — the RBA has pointed to small businesses as likely beneficiaries, and estimates the overall package could save consumers and businesses up to around $1.8 billion a year. The effect on any single business depends on its card mix and whether its provider passes the cuts through, so treat lower fees as likely rather than guaranteed and let your own statements be the source of truth.

Why your rate matters more now

Put the two halves together. Whether or not your headline fee moves, removing the surcharge means that fee now comes straight off your margin on every eftpos, Mastercard and Visa sale. A business on a sharp rate barely notices; a business on a high rate feels every basis point. That makes 2026 the ideal moment to check you’re not overpaying — our savings calculator turns your rate into an estimated annual cost, and a free comparison shows exactly where you stand.

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
Do merchant fees disappear after the surcharge ban?
No. The 2026 change removes surcharging on eftpos, Mastercard and Visa — it does not remove the merchant service fees you pay to accept cards. After the change the card cost sits with your business rather than being passed to the customer as a surcharge on those networks. The fee still exists; only who pays it changes.
Will my merchant fees go up or down in 2026?
The surcharge change itself doesn’t raise your underlying fee — it changes who pays the card cost. Separately, the RBA is lowering domestic interchange caps from 1 October 2026 and foreign-card caps from 1 April 2027, which may reduce your cost of acceptance, especially for small businesses. Whether you see the benefit depends on your card mix and your provider, so your own statements are the best guide.
If I can’t surcharge, how do I cover the card cost?
You can either absorb the cost or build it into your headline prices, and you can still surcharge the methods not covered — American Express and PayPal — within your cost of acceptance. Because the covered-card fee becomes a direct cost, the most effective lever is making sure your merchant rate is competitive in the first place.
What’s the smartest thing to do about my fees?
Know your blended rate and compare it. Because the card fee becomes a direct cost once surcharging is removed — and because interchange cuts and new fee-transparency rules make a better rate easier to find — even a small reduction flows straight to your bottom line. Use our calculator, then get a free comparison. We can’t guarantee savings, but you can’t manage what you haven’t measured.
Keep reading
Is the RBA surcharge ban actually law? →Can I still surcharge Amex after October 2026? →All questions →
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