RBA Surcharge Changes: What Australian Merchants Need to Know

If you’ve seen the recent announcement from the Reserve Bank of Australia (RBA) around card surcharges, you’re not alone in wondering what it actually means for your business.

The short version:

The RBA will remove card surcharges across EFTPOS, debit and credit transactions, with effect from October 1st 2026.

But right now, nothing changes.

Here’s a clear breakdown of what’s been announced, what it could mean and what to keep an eye on:

• What’s been announced
• What this means (right now)
• What could change (and why this matters)
• Why the RBA is making this change
• Lightspeed’s approach*

What’s been announced

On 31 March 2026, the RBA confirmed it will remove surcharges on card payments, including EFTPOS, Visa and Mastercard with effect from 1 October 2026.

Alongside this, they will also:

• From October 2026, lower interchange fees for domestic-issued transactions and consumer credit cards (0.16% for debit and 0.3% for credit)
• From April 2027, introduce a cap on interchange fees for foreign-issued cards
• Ensure increased pricing transparency across card networks

What this means (right now)

For now, everything carries on as normal. If you currently apply a surcharge, you can continue to do so. 

Nothing changes today. Surcharging remains fully operational until 1 October 2026.

What could change (and why this matters)

With the proposed changes, merchants will no longer be able to pass on card costs through a surcharge.

That doesn’t mean those costs disappear. It just changes where they sit.

The RBA has flagged reductions to interchange fees (the underlying cost of accepting card payments). In theory, that should help offset some of the impact.

But it’s unlikely to be a one-for-one trade.

For many operators, that raises practical questions:

• Do you absorb the cost?
• Do you adjust pricing?
• Do you revisit your payments setup?

This is where the impact will vary most from business to business.

Why the RBA is making this change

Card payments now dominate how Australians pay.

Surcharging was originally introduced to give businesses a way to recover costs and steer customers toward cheaper payment methods.

But as cash use declines and card payments become the default, the RBA’s view is that surcharging is no longer working as intended and is often confusing for customers.

Lightspeed’s approach

At Lightspeed, we’re focused on making sure any changes are clear, manageable and aligned with how your business actually operates.

We’re working through what this means in practice and will share clear updates as more detail becomes available.

In the meantime, your current setup continues to work as normal.

*Lightspeed does not provide tax, legal or accounting advice. This post has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice.