Review of Retail Payments Regulation – Phase 3 Merchant Card Payment Costs and Surcharging – Conclusions Paper In Brief
The Reserve Bank of Australia (RBA) has released the Conclusions Paper for the Review of Merchant Card Payment Costs and Surcharging. There are three key findings from the Review to support a more efficient and competitive payments system.
Our conclusions
Surcharging on debit and credit cards should end from 1 October 2026
Surcharging is no longer achieving its intended purpose. Previously, surcharging encouraged consumers to use cheaper payment methods. However, it has become harder for consumers to avoid surcharges. Consumers and businesses find surcharging rules complex and confusing, and surcharges are often not well disclosed.
Fees paid by businesses for card payments are too high
We are lowering the maximum interchange fees that businesses pay for debit and consumer credit card payments. We are also introducing a cap on interchange fees for foreign card payments. This should help to reduce card payment costs, especially for small businesses.
More transparency is needed over card payment fees
eftpos, Mastercard, Visa and large acquirers will have to publish the fees they charge, which will help businesses check how their fees compare. Businesses will get standardised information on their statements, which can help them to get accurate quotes from different providers.
Transcript
Today we’re releasing the conclusions from our Review of card payments.
This Review looked at how well the card payments system is working for Australian consumers and businesses and how it can be improved.
There are three key findings.
First, the Review found that card surcharging on both debit and credit cards should end on 1 October 2026. Surcharging no longer works as intended.
Consumers and businesses find the rules complex and confusing, surcharges are often not well disclosed, and most consumers want surcharging to stop.
Second, removing surcharging needs to be paired with lower payment costs for businesses, especially for small businesses, which pay the highest fees.
To do that, the RBA is reducing caps on the interchange fees that businesses pay on debit and consumer credit cards and we are introducing caps on fees for foreign cards.
Third, merchants need tools so they can shop around for better deals.
So we will publish merchant fees to make it easier for businesses to check if they are paying high fees.
We will also require payment service providers to give businesses all the information they need to get accurate quotes.
These changes will make card payments simpler for consumers and help businesses get better value from their payment services.
This is all about card payments, but we know many people continue to rely on cash to make payments. The RBA remains committed to supporting the availability of cash in the Australian economy.
You can find more information on our website. Thank you.
13 of consumers are always told about surcharges when they shop
76 of consumers want surcharging to stop
Sources: JWS Research; RBA.
What the changes mean for you
Meet Alice
Alice is a shopper who visits a mix of small local stores and larger retailers throughout the week. Convenience matters to her, so she chooses to pay by card most of the time rather than carry cash.
Explore furtherWhat the findings mean for small businesses that does not surcharge card payments
Meet Aiden
Aiden is a small business owner who does not currently surcharge card payments in his shop.
He should receive a bigger reduction in interchange fees than the large business next door. This should reduce the fees he needs to pay to accept card payments and make his business more competitive.
Explore furtherWhat the findings mean for businesses that surcharge card payments
Meet Priya
Priya runs a medium-sized business that currently surcharges card payments. The majority of her customers pay by card.
Now that she can no longer surcharge card payments, Priya may decide to include the cost of these payments in her advertised prices. She wants to keep her prices as low as possible for her customers.
Explore furtherInterchange fee changes
Next steps
Most of the changes will come into effect on 1 October 2026, including the removal of surcharging and reductions in the interchange caps for domestic card transactions. The introduction of an interchange cap on foreign cards and some changes to payment cost transparency will come into effect later, on 1 April 2027, to ensure the payments industry has sufficient time to implement these more complex changes.
Related information
Media Release
Our media release announcing the publication of the Conclusions Paper and its key findings.
At a Glance
Our quick summary of the key conclusions and what they mean for businesses and consumers.
Issuer Cost Study
Our explanatory notes and templates used by issuers for the latest Issuer Cost Study, the results for which are included in the Conclusions Paper.
Standards
Our variations to Standards No. 1, 2 and 3 that the RBA intends to determine and lodge on the Federal Register of Legislation.
Review of Retail Payments Regulation
An overview of the Review, the phases involved and the documents published relating to payment costs and surcharging.