Surcharges in Australia: Card Fees and Holiday Charges

Since 1 October 2026, businesses generally can no longer add a card payment surcharge on eftpos, Mastercard or Visa. Those surcharges are the “card fees” in our title, not annual card fees or the merchant fees businesses pay. The “holiday charges” are weekend and public holiday surcharges at cafes and restaurants, which are a different thing and are not covered by the change.

What changed for card surcharges on 1 October 2026?

A business generally can no longer add a surcharge because you pay with a credit, debit or prepaid card on eftpos, Mastercard or Visa. We checked this on 6 November 2026 at 10:40pm AEDT and found no reversal or delay.

• Where it applies: the FAQ published for eftpos, Mastercard and Visa says the rules cover in-store, online and digital payments, including cards stored in mobile wallets.
• Card types: the same FAQ says the rules are expected to apply broadly consistently across personal, commercial and corporate cards.
• Cards from overseas: the Reserve Bank of Australia (RBA) says the rules generally apply to internationally issued cards of these networks as well.
• Overseas businesses: the FAQ says the Australian rules do not apply when you use an Australian card with a business overseas.
• Exceptions: the FAQ says the rules apply unless a law or regulation expressly permits surcharging, giving taxis as its example. The RBA says any exemptions are for each network to decide.
• Older invoices: the RBA says a surcharge may no longer be available on a payment made now, even if the invoice was issued earlier.
• How common surcharges were: the RBA found 16 per cent of Australian merchants surcharged these networks in 2024/25. It estimates the total at about $1.8 billion, of which about $1.6 billion was paid by consumers.

The change is only about surcharges. Your card’s annual fee and the fees a business pays its payment provider are separate matters.

Is this a law, and who enforces it?

It is not a statute: the RBA removed its prohibition on no-surcharge rules, and the card networks impose those rules themselves. News reports often call it a ban, but that is shorthand.

The decision came from the Payments System Board’s Conclusions Paper, announced in RBA media release 2026-10 on 31 March 2026. The ACCC says Visa, Mastercard and eftpos then decided to introduce no-surcharge rules from 1 October.

• Who enforces the card rule: the RBA says the networks are ultimately responsible, not the RBA. The ACCC says the networks or payment service providers are responsible, not the ACCC.
• What the ACCC and state agencies do enforce: the Australian Consumer Law, including the requirement not to make misleading claims about prices or the reasons for price changes.
• Legislation: the RBA says the Government could legislate if surcharging continues on these networks. We did not see a timeline.
• The rule that applied until 1 October 2026: a surcharge on these networks could not be more than it cost the business to process that payment type. The ACCC says it was responsible for enforcing that rule, and an RBA backgrounder prepared in 2024 says the ACCC gained those powers following a 2015-16 review.

Which payments sit outside the RBA change?

The RBA’s change covers the designated eftpos, Mastercard and Visa networks, but American Express, JCB, UnionPay and PayPal have removed surcharging themselves, and taxi surcharges stay with state and territory regulators.

• American Express, JCB, UnionPay and PayPal: these are not formally regulated by the RBA in the same way, but a surcharge on them is not expected either. The ACCC says surcharges on American Express payments ended from 1 October. The networks’ FAQ says JCB and UnionPay aligned from that date, and the RBA gives 5 October as the start of PayPal’s rule. The NSW Government notes that these rules are set by the networks and providers and may change over time.
• Buy now, pay later: the RBA refers to higher-cost payment methods that are not price regulated and do not allow surcharging, “such as some BNPL products”. It does not say this of all BNPL products.
• Taxis: the RBA says taxi surcharges remain the responsibility of state and territory regulators, so a taxi surcharge may still appear on a card covered by the change.

Non-designated networks and BNPL are also part of a separate RBA review. It published an Issues Paper on 25 June 2026 covering mobile wallets, non-designated card networks and BNPL, among other topics. Submissions closed on 7 August. The RBA intends to publish regulatory priorities by the end of 2026 and start further consultation by mid-2027.

Can cafes and restaurants still charge weekend and public holiday surcharges?

Yes: hospitality businesses can keep charging weekend and public holiday surcharges if they disclose them as the rules require. The ACCC, the RBA, the NSW Government, WA Consumer Protection and business.gov.au all draw this line. These surcharges are not based on how you pay.

The ACCC and the NSW Government describe the display rule for restaurants and cafes like this:

• No separate menu needed: the NSW Government says they do not need a separate menu or a price column with the surcharge factored in.
• Required statement: the ACCC says the menu must include the words “A surcharge of [percentage] applies on [day or days]”.
• Prominence: those words must be at least as prominent as the most prominent price on the menu.
• No prices listed: the ACCC says the information must be displayed in some other prominent way, and the NSW Government says it must be obvious and visible to a reader.
• Coverage: the NSW Government says the measures apply to both food and drinks.

The exception has a limit. In a worked example on the ACCC’s price displays page, a surcharge that applies every day must be built into the displayed price. Only the extra amount on Sundays and public holidays can sit in the menu statement.

The ACCC describes this exemption as one for restaurants and cafes. For other surcharges or fees, it says businesses should display them prominently so you can see them before you decide to buy, and must not mislead you about them.

None of the regulator pages we read sets a percentage limit on these surcharges, so the menu is your guide. Rates can also move: SBS reported on 2 October that one Sydney cafe owner was lifting his weekend surcharge from 10 to 12 per cent instead of raising menu prices. That is one example, not a norm. The ABC has reported that businesses cite penalty rates as the reason for these surcharges.

Which public holidays are coming up?

The next full-day public holidays are Friday 25 December, Saturday 26 December and Monday 28 December in the four states whose official lists we read, and Queensland and South Australia also have a part-day Christmas Eve holiday first. Part-day holidays below run in local time.

• New South Wales: Fri 25 Dec, Sat 26 Dec, additional day Mon 28 Dec, Fri 1 Jan 2027, Tue 26 Jan 2027.
• Queensland: Christmas Eve Thu 24 Dec from 6pm to midnight, Fri 25 Dec, Boxing Day Sat 26 Dec and Mon 28 Dec, Fri 1 Jan 2027, Tue 26 Jan 2027.
• Western Australia: Fri 25 Dec, Boxing Day Sat 26 Dec and Mon 28 Dec, Fri 1 Jan 2027, Tue 26 Jan 2027.
• South Australia: Christmas Eve Thu 24 Dec from 7pm to midnight, Fri 25 Dec, Proclamation Day holiday Sat 26 Dec, additional day Mon 28 Dec, New Year’s Eve Thu 31 Dec from 7pm to midnight, Fri 1 Jan 2027, Tue 26 Jan 2027.

We could not read the official lists for Victoria, Tasmania, the ACT or the Northern Territory, so this is not a national list. Check your own state or territory’s page. These lists also do not tell you whether a given cafe will charge a surcharge, because that depends on the days named on its menu.

Are new service, booking and platform fees allowed?

They are not automatically banned, but a fee that is really a card surcharge is still a card surcharge, and the ACCC says relabelling it may be misleading conduct.

• Genuine fees: the RBA says its changes do not apply to booking or service fees. The networks’ FAQ describes these as fees charged to all customers regardless of payment method. WA Consumer Protection says they may still apply if they comply with the Australian Consumer Law.
• Relabelled fees: the ACCC, the NSW Government and WA Consumer Protection all say a business should not get around the rules by calling a card surcharge something like an administration, processing, handling or service fee.
• The ACCC’s example: a takeaway shop displays a $20 meal, charges $20.24 after a card payment and says the extra is a service fee covering card costs. The ACCC says that fee may still be a card payment surcharge.
• How it gets judged: SBS reported on 2 October that the ACCC is aware of concerns about platform, booking and service fees, and that the answer depends on what a charge covers and how it operates.
• A simple test: a Deakin University finance academic, writing in The Conversation, says the question is what triggers the charge. If it appears only because you paid by card, the label does not change what it is.
• Display: the ACCC says the displayed total must include any fee that can be calculated at the time, such as a flat percentage fee. The NSW Government says optional charges and extras need not be included.

The networks’ FAQ says a business that keeps applying a non-permitted card surcharge may be contacted by its payment provider or bank to remove it, and may be subject to penalties.

Is the new drip pricing law in force?

No: the Competition and Consumer Amendment (Unfair Trading Practices) Act 2026 does not commence until 1 July 2027, although it passed Parliament on 2 July 2026. Drip pricing means adding fees as you move through a purchase.

• What it will require: Clayton Utz says mandatory transaction-based charges, such as booking, processing or service fees, must be displayed prominently with the base price.
• What it excludes: Clayton Utz says optional charges, payment surcharges and taxes are excluded.
• Penalties: HWL Ebsworth says the regime will carry maximum penalties of up to $100 million, or higher turnover-based alternatives.
• Holiday surcharges: we did not establish how the provision treats a restaurant’s public holiday surcharge.

Existing law still applies in the meantime. The ACCC’s price displays page already warns against misleading drip pricing, and Allens reports that cinema chain Dendy agreed to pay a $19,800 penalty in June 2025 after an ACCC infringement notice alleging drip pricing.

Does the end of card surcharges mean lower prices?

Not necessarily: businesses can build card costs into their sticker prices, and we make no forecast either way. For businesses that used to surcharge, the RBA says customers would pay similar amounts to what they paid before the change, because the card cost can move from a separate surcharge into the sticker price, which would rise a little.

The ACCC also says businesses can recover these costs in their overall prices. What they cannot do is mislead you about why. In the ACCC’s example, a salon that lifts a haircut from $60 to $65 partly because of energy and labour costs must not tell customers the rise is due to the card changes.

One tracker gives a look at what has already happened. InDaily reported on 3 November that the coffee tracking site SmallFlatWhite.com, which covers more than 68,000 prices from over 18,000 cafes, put the average small flat white at $5.16. About one in five cafes raised prices in October, most commonly by 50 cents. The site’s creator described losing the surcharge as the tipping point for some, and the report also points to wages, rent and milk costs. That is one private dataset for one product.

Can a business still offer a cash discount, set a minimum or refuse cards?

Yes: businesses can still offer payment-method discounts, set minimum card amounts and generally choose which payments they accept, but the full price must be displayed and some businesses must accept cash.

• Discounts: the RBA says businesses can still offer discounts for particular payment methods. The ACCC says the discount should be disclosed before you choose to book, order or pay, the displayed price must be the full price you pay without the discount, and the discounted price must not be shown alone or more prominently.
• Choosing payment methods: the RBA says businesses can generally choose which methods they accept, although some must accept cash.
• Minimum card amounts: SBS reports businesses can set them, subject to applicable rules.

What is happening with the ATO and credit cards?

The ATO will keep taking credit cards until 30 June 2027 under transitional funding, and after that it will accept them through third parties. Treasurer Jim Chalmers announced this on 9 October 2026.

The ABC reported that the ATO had planned to stop accepting credit cards from December, saying that absorbing the fees would cost about $200 million a year. The Treasurer’s release says just over 2 per cent of individuals and around 5 per cent of small businesses paid by credit card in 2024-25. We did not establish whether paying through a third party after June 2027 will carry a fee.

What happened to interchange fees?

Domestic debit, prepaid and consumer credit interchange caps fell on 1 October 2026, the commercial credit cap stayed at 0.8%, and a new cap on foreign-issued cards starts on 1 April 2027. Interchange is a fee on each card payment that feeds into what a business pays to accept cards, and the RBA says the cuts should help lower those costs.

The table compares each RBA cap before and after the Conclusions Paper.

The RBA also abolished the consumer and commercial credit benchmarks.

How do I complain about a surcharge?

Start with the business, then go to the card network or payment provider, and take misleading pricing to your state or territory consumer agency or the ACCC.

1. Ask what the charge is for. It may be a genuine booking or service fee, or a weekend surcharge, rather than a card surcharge. The ACCC says that if the business confirms it is a card surcharge, you should ask for a refund. It also helps to keep your receipt and a photo of the menu or price display.
2. Go to the network if it is not refunded. The RBA and the ACCC say your EFTPOS receipt shows the network. The ACCC says to contact Visa, Mastercard or American Express depending on the card, and if you paid using eftpos, the bank that issued your card.
3. Tell your bank or the provider. The ACCC says you can also contact your own bank, and the business’s payment service provider if you know who it is. The brand name on the payment terminal or receipt may show you.
4. Report misleading pricing. The RBA says to go to the business first, then your state or territory consumer agency, and that you can report false or misleading price displays to the ACCC. The menu statement requirement comes from the ACCC’s price displays page, and the ACCC accepts reports about businesses.

The ACCC says it does not resolve individual pricing complaints, but uses reports to inform its education, compliance and enforcement work. NSW Fair Trading takes complaints by online form or post. WA Consumer Protection can be reached on 1300 30 40 54.

Sources

• RBA media release 2026-10: Conclusions Paper (31 March 2026)
• RBA Conclusions Paper: Surcharging
• RBA Conclusions Paper: Interchange fees
• RBA Conclusions Paper: Impact and implementation
• RBA Conclusions Paper: FAQs
• RBA non-technical summary
• RBA backgrounder on payment surcharges
• RBA media release 2026-17: Review of Payments System Regulation (25 June 2026)
• ACCC: Card surcharges
• ACCC: Price displays
• Card surcharge FAQs for consumers (eftpos, Mastercard and Visa, via AusPayNet)
• NSW Government: Pricing standards
• WA Consumer Protection: What the card surcharge change means for your wallet
• business.gov.au: Card payment surcharge changes
• Treasurer: ATO to continue accepting credit cards until 30 June 2027
• Assistant Minister Andrew Leigh: Unfair trading practices release (2 July 2026)
• NSW public holidays
• Queensland public holidays
• WA public holidays
• SafeWork SA public holidays
• Clayton Utz: Unfair Trading Practices Act explained
• HWL Ebsworth: Parliament passes unfair trading practices reforms
• Allens: The new Unfair Trading Practices Act 2026
• SBS: Everything you need to know about the card surcharge change
• SBS: New fees after card surcharges ended (2 October 2026)
• The Conversation: New service fees and the rules
• ABC: Cafe and restaurant surcharges (16 January 2025)
• ABC: Funding to delay the ATO credit card change (9 October 2026)
• InDaily: Small flat white report (3 November 2026)