The Reserve Bank of Australia has published a Conclusions Paper setting out the Payments System Board’s final decisions on its Review of Merchant Card Payment Costs and Surcharging, confirming a reform package to remove card surcharging, reduce interchange fees and increase fee transparency. The Board concluded the package would be in the public interest and promote competition and efficiency, following an extensive consultation process that began with a Consultation Paper in July 2025. Surcharging will be removed for debit, prepaid and credit cards on the designated eftpos, Mastercard and Visa card networks, on the basis that the existing framework is no longer effectively steering consumers towards more efficient payment choices and has become harder to enforce as more businesses surcharge all cards at the same rate and cash use has declined. Interchange fee caps paid by Australian businesses will be lowered, with expected cost reductions when accepting domestic or overseas card payments and proportionately larger benefits for small businesses that tend to pay fees closer to the current caps. Transparency requirements will be strengthened for fees charged by card networks and payment service providers to support competition and make it easier for businesses to compare providers. Most changes, including the removal of surcharging and reductions to interchange caps for domestic card transactions, will take effect on 1 October 2026. An interchange cap on foreign cards and some transparency changes will take effect on 1 April 2027. The RBA also plans to begin a separate public consultation in mid-2026 on whether to regulate other parts of the retail payments system not covered by the review, including mobile wallets, three-party card networks, buy-now pay-later services and e-commerce platforms.
Reserve Bank of Australia 2026-03-31
Reserve Bank of Australia finalises reforms removing card surcharging and lowering interchange fee caps
The Reserve Bank of Australia has finalised a reform package from its Review of Merchant Card Payment Costs and Surcharging, confirming lower interchange fee caps and stronger fee transparency requirements for designated eftpos, Mastercard and Visa card networks. The Reserve Bank of Australia expects the measures to reduce payment acceptance costs, particularly for small businesses, and to promote competition and efficiency. It also plans a separate consultation in mid-2026 on potential regulation of other retail payment services, including mobile wallets, three-party card networks, buy-now pay-later services and e-commerce platforms.