Australia Bars Card Surcharges on eftpos, Mastercard and Visa

Australian merchants can no longer add card-use surcharges on eftpos, Mastercard and Visa transactions under rules effective Oct. 1, removing a separate fee customers could face when paying with those cards.

The Reserve Bank of Australia (RBA) lifted its restriction on the three networks adopting no-surcharge rules. The rules generally cover credit, debit and prepaid cards, including cards issued outside Australia. Merchants must comply unless an exception applies; business, nonprofit and business-to-business payments are not broadly exempt.

The ban covers fees added because a customer pays by card. It does not cover weekend or public-holiday surcharges, booking fees or service fees. Merchants may include card-acceptance costs in overall prices or offer discounts for selected payment methods.

American Express, UnionPay and PayPal also decided to end card surcharges, though they are not formally regulated by the RBA. American Express and UnionPay withdrew from their existing undertakings with the RBA on Oct. 1. PayPal’s no-surcharge rule took effect Oct. 5.

Separate reforms lowered interchange fee caps for domestic card transactions starting Oct. 1. Beginning Oct. 30, designated card networks and large acquirers must publish required card-fee information on their websites.

Large acquirers must disclose how lower interchange fees pass through to merchant service fees starting Jan. 30, 2027. From April 1, 2027, interchange caps will apply to foreign-issued cards acquired in Australia, and acquirers must provide merchants with more detailed statements.