Australia Banned Card Surcharges: What to Learn

What Australia changed on October 1

NAB says that from October 1, 2026 businesses across Australia can no longer surcharge on debit, prepaid and credit cards, including eftpos, Mastercard, Visa, American Express and UnionPay International, for domestic and foreign cards, in store or online. Lower domestic interchange caps set by the Reserve Bank of Australia took effect the same day, with a cap on foreign card interchange from April 1, 2027. NAB also warns that renaming a surcharge as an admin, service or card fee does not make it compliant: a fee applied because a customer pays by card is a surcharge.

Why the regulator acted

NAB summarises the Reserve Bank's findings: cards have become the default way to pay, surcharges no longer steer customers to cheaper payment methods, the rules had become complex and inconsistently applied, and surcharges often appeared only at the last step of a sale, so customers could not see the true price upfront. The regulator's answer was to lower the cost side through interchange caps and remove the fee from the checkout.

Nothing changed in the US or Canada

In the US, surcharging credit cards is allowed in most states within card network rules, with some state limits, and debit cards cannot be surcharged. In Canada, merchants may surcharge credit cards within network rules, with Quebec as an exception. These rules did not change on October 1. What Australia shows is where the debate can go when surcharges become common: regulators look at the fee, and at the cost behind it. See our state-by-state table and our Canada guide for the current rules where you sell.

Three questions if you add a card fee today

1. Is it allowed everywhere you sell? State and provincial rules differ, and online sales can reach customers in places with stricter rules. 2. Is it disclosed the way the card networks require? That usually means notice at the entrance and at the point of sale, the fee shown on the receipt, and a cap on the amount. 3. Do you know your actual card cost, line by line? A surcharge should not exceed what cards really cost you, and you can only know that from your statement.

Surcharge, cash discount or neither

A surcharge adds a fee for card payments. A cash discount program shows a card price and a lower cash price. Some businesses choose neither and build card costs into their prices, the approach Australian businesses now have to take. Each has trade-offs in customer experience and compliance. Our guide compares surcharging and cash discount programs side by side.

What changes for multi-location and enterprise merchants

If you operate in several states, provinces or countries, apply card fee rules location by location, not one policy everywhere. Australian locations had to switch surcharging off by October 1. In North America, keep a register of where card fees are on, the disclosure used and the date it was last reviewed. Check that online checkout applies the rule of the customer's location where required, and that your processor settings match your signage.