The card surcharge ban starts 1 October. What does it mean for your cash flow?

Quick answer: From 1 October 2026, businesses can no longer add a surcharge when a customer pays by card. This covers debit, prepaid and credit cards on eftpos, Mastercard, Visa, American Express and UnionPay International, both in store and online. You'll still pay fees to your payment provider, so the cost doesn't disappear. It moves onto your side of the ledger.

What exactly changes on Wednesday?

The Visa, Mastercard and eftpos networks are each introducing "no surcharge" rules from 1 October 2026, and American Express has decided to remove surcharging from the same date, which means businesses cannot continue to charge customers a surcharge for using these payment types.

Two other changes land the same day. Interchange fee caps are being lowered, and payment providers face new transparency requirements designed to help businesses understand and compare what they're paying. So, your processing costs should fall, but by how much depends on your provider and your mix of card types.

Who enforces it?

The card networks and payment service providers are responsible for enforcing the rules, not the ACCC. In practice, that means the pressure comes through your merchant agreement rather than a regulator knocking on the door.

What should you do before 1 October?

• Check every place a surcharge appears. Remove card surcharge information from menus, websites, booking systems, invoices and signage before 1 October.

• Talk to your payment provider. Check your EFTPOS terminals, point-of-sale systems, online payment platforms and invoicing systems to understand what changes are needed.

• Work out what you're actually paying. Your fees should come down. Find out by how much, because that number decides whether this is a small adjustment or a real margin problem.

• Decide on pricing. Consider how the change affects your costs and whether you need to review your prices, and if you do change them, give customers clear and accurate information.

  
  

Does this apply to every surcharge?

No. Other surcharges, such as public holiday surcharges, aren't affected, provided they meet the relevant requirements. Businesses can also still offer a discount to customers who pay using a particular method, such as cash.

What does it mean for your margins?

For most businesses this is a small cost that has to go somewhere. Lift prices to cover it, absorb it, or find the difference elsewhere. None of those is dramatic on its own.

The risk is that it rarely arrives alone. A margin squeeze usually turns up alongside something else: a supplier increase, a quiet month, a tax bill, a rate change. Each one is survivable. Together they turn into a cash flow problem that looks sudden but wasn't.

That's the part worth thinking about now, while it's still a pricing decision rather than a funding one.

When should you talk to a broker about it?

Before the gap opens, not after. If this change is enough to tighten your position, it's worth knowing what your options look like while your trading figures are still strong. Lenders assess the business you show them, and that picture is always better a few months early than a few weeks late.

If you're weighing up a rate change at the same time, our post on what to check before the RBA decision covers the other half.

Frequently asked questions

When does the card surcharge ban start? 1 October 2026.

Which cards does it cover? Debit, prepaid and credit cards on Eftpos, Mastercard, Visa, American Express and UnionPay International, for payments made in store and online.

Can I still charge a public holiday surcharge? Yes. Other surcharges, such as public holiday surcharges, aren't affected, provided they meet the relevant requirements.

Can I offer a discount for cash? Yes. Businesses can offer discounts to consumers who pay using a particular payment method, such as cash.

Who enforces the ban? The card networks and payment service providers, not the ACCC.

About George Capital Finance Solutions

George Capital Finance Solutions is a Sydney-based mortgage broking, debt advisory and commercial finance business working across more than 33 lenders Australia-wide. Level 3, 219 Castlereagh Street, Sydney. Call (02) 9072 9288.

General information only. Not financial advice. Consider your own circumstances before making any decision.