RBA Surcharge Ban:
What It Means for Australian Businesses and Consumers
RBA Surcharge Ban
What it means for Australian Business and Consumers
On 15 July 2025, the Reserve Bank of Australia (RBA) proposed one of the biggest shifts in the Australian payments landscape in over a decade - banning card payment surcharges for most transactions and introducing new rules to make payment fees more transparent.
This means that if you run a business in Australia, this is something you can’t afford to ignore. The changes are expected to be finalised by the end of 2025 and come into effect from 1 July 2026.
Let’s break down what’s changing, why it matters, and how your business can prepare.
At a glance
In simple terms, the RBA’s proposal will:
• Ban surcharges for EFTPOS (Electronic Funds Transfer at Point of Sale), Visa, and Mastercard (both debit and credit transactions).
• Reduce interchange fee caps, lowering the cost of accepting card payments for merchants.
• Require fee transparency. Card schemes and acquirers must publish their interchange rates so businesses can compare providers more easily.
The ultimate goal of the RBA’s proposal is to simplify payments for consumers, make costs more predictable for merchants, and remove “bill shock” at checkout when a surcharge appears.
Key Dates
RBA announces proposal
Consultation closes
Final decision announced
Changes come into effect
15 July 2025
26 August 2025
End of 2025
1 July 2026
Why
is
the RBA doing this?
The RBA estimates that removing surcharges will save consumers around A$1.2 billion a year - roughly A$60 per household. By reduce complexity in the payments system, the RBA hopes to improve consumer trust towards card payments, particularly by eliminating hidden costs.
This move isn’t entirely out of the blue. The proposal aligns with global trends (for example, in the UK and EU) toward inclusive pricing models. What’s more, simplifying card payment systems is increasingly commonplace, as cash usage continues to fall globally.
Consumer sentiment strongly supports the decision:
69% of Australians say they support banning surcharges
85% believe payment processing costs should be built into the product or service price
Impact on businesses
While the RBA’s modelling suggests 90% of merchants will be better off as a result, the reality will depend on the cost structure and industry of your business.
Potential benefits:
• Lower interchange fees = reduced overall card acceptance costs
• Less admin work managing surcharges and compliance
• Improved customer satisfaction from “clean pricing”
Potential challenges:
• Businesses that relied on surcharges to recover costs will need a new strategy
• Low-margin sectors like hospitality may feel pressure to raise prices
• Competition on price may increase as “no-surcharge” becomes the norm pricing”
For example
If the proposal is accepted, a small Melbourne café that pays 1.2% to process Visa card payments can still charge that exact amount as a surcharge, thus breaking even. But if customers complain, the café might choose to absorb the fee instead - reducing its profit per sale unless it adjusts menu prices.
Impact on
consumers
For consumers, there’s plenty of potential upside. They can expect an end to last-minute surcharges at checkout, and more predictable final prices as a result. There’s a potential for additional savings if businesses choose to pass on their own lower costs, too.
However, that’s not necessarily a guarantee. If some merchants embed fees into their base prices, consumers could potentially see slightly higher sticker prices, although this would be spread across all transactions rather than only card payments.
For example
Using the example of our Melbourne cafe again, a $5 coffee costs $5.08 for card users, while cash customers pay only $5. Without the option to surcharge, the café may raise its base prices by 1.5% to cover card processing costs, meaning all customers would now pay $5.08 regardless of payment
Industry Concerns
While this news means broad benefits to the consumer and simplification of the Australian payment ecosystem, not everyone is cheering.
Hospitality groups, for example, warn the RBA’s decision may squeeze already tight margins. Visa Australia has raised concerns that excluding American Express, BNPL providers, and digital wallets like Apple Pay and Google Pay could distort competition. Some economists note there’s no obligation amongst business to pass the savings onto consumers, unless competitive pressure forces it.
How can merchants
prepare now?
Even though the changes won’t kick in until mid-2026, the smart move is to start planning now.
We’ve prepared a few initiatives that merchants could consider doing:
• Review your pricing model - consider whether you’ll absorb costs or adjust base prices.
• Benchmark your current fees - request published interchange rates from your provider and compare.
• Explore cost-saving options - such as smart routing to lower-cost payment rails.
• Engage with the consultation - submissions close 26 August 2025.
• Work with a payments partner like Nuvei who can help you stay compliant and competitive.
The bottom line
The RBA’s surcharge ban will reshape how Australians pay and how businesses recover payment costs. For most merchants, it’s an opportunity to simplify checkout, improve trust, and potentially reduce costs - but only if you plan ahead.
How can Nuvei help?
At Nuvei, we support businesses globally, including those based in ANZ, to adapt to regulatory changes and thrive.
If you’re operating out of Australia, reach out and learn how we can help you stay on top with:
Transparent, competitive pricing
Smart routing technology to reduce transaction costs
Compliance-ready infrastructure aligned with RBA standards
Expert advisory services to build your pricing and payments strategy
Book a free consultation with a payments expert today to get ahead of these changes.
Contact us at www.nuvei.com/offers/australia-and-new-zealand
Phone: 1300 369 692 Email: sales-anz@nuvei.com