Reserve Bank of Australia Bans Card Surcharges

The new policy ensures consumers pay the advertised price on goods and services across the nation.

Updated on Oct. 20, 2026 in Credit Cards

Reserve Bank of Australia Bans Card Surcharges

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The Reserve Bank of Australia implemented a ban on card surcharges on 1 October 2026. This policy update aims to increase price transparency for all retail transactions.

Why it matters

The ban addresses concerns regarding hidden costs at the point of sale by ensuring that the final price paid by consumers matches the advertised price. It specifically targets fees previously added to card-based payments.

Approximately 75 percent of all consumer payments in Australia are now made using a card. This figure highlights the reach of the new surcharge ban that took effect on 1 October 2026.

The players

Reserve Bank of Australia

The Reserve Bank of Australia is the nation's central bank and conducts monetary policy while managing financial system stability.

The details

Under the new mandate, merchants are prohibited from applying additional surcharges to card transactions, effectively requiring the advertised price to be the final price. This change is designed to simplify the payment experience for customers who rely on card payments for the vast majority of their daily purchases.

1 October 2026: The card surcharge ban came into force.

Market Dynamics

This policy extends the existing Reserve Bank of Australia card surcharge standards to ensure total price transparency. It shifts the competitive landscape by removing the ability for merchants to pass transaction fees directly onto consumers at the point of sale.

Shoppers will now pay the exact price advertised on goods and services without the surprise of additional card fees. This simplifies personal budgeting by eliminating variable transaction surcharges from your monthly bank statements.

The takeaway

Consumers should be aware that the advertised price is now the definitive cost of their purchase at the register. Always check that the final transaction amount matches the shelf price to ensure you are receiving the full benefit of this regulatory change.