Merchant Card Payment Costs and Surcharging – July 2025
In Brief
The RBA is reviewing its regulation of card payments and surcharging. The aim of the review is to ensure that the RBA’s objectives of competition, efficiency and safety in the payments system are being met. This Consultation Paper identifies some issues with the current approach and asks for feedback on our proposed changes.
What issues did we identify?
Surcharging is no longer achieving its intended purpose.
Surcharging is no longer achieving its intended purpose of steering consumers towards cheaper payment methods. Fewer people use cash these days and businesses are increasingly charging the same surcharge rate across debit and credit cards – making surcharges hard to avoid.
The interchange fees paid by businesses to card providers are too high.
The interchange fees paid by businesses to card providers are too high, especially for small businesses.
More transparency is needed over card payment fees.
It is currently too hard for businesses to shop around for better deals.
What are our key proposals?
Surcharging on eftpos, Mastercard and Visa cards should be removed.
Removing surcharging across debit and credit cards could save consumers a total of $1.2 billion each year. It would also make card payments simpler, more transparent and help to increase competition.
The interchange fees paid by businesses to card providers should be reduced.
The interchange fees paid by businesses to card providers should be reduced because it is now cheaper to process card payments. Our proposals could save businesses around $1.2 billion in interchange fees a year and make 90 per cent of businesses better off.
Card networks and large acquirers should publish the fees they charge.
Improving transparency will boost competition and help businesses find the best plan for accepting card payments.
We are taking feedback
The RBA is seeking feedback before finalising any proposed changes.
You can make a written submission by 26 August 2025. Please see Chapter 9 of the Consultation Paper on how to make a submission.