Card Surcharge Changes in Australia: What Small Businesses Should Do Before October 2026

• Accounting
• Bookkeeping
• Small Business

Australia’s card surcharge rules are changing. The Reserve Bank of Australia has concluded that surcharging on debit and credit cards should end from 1 October 2026 for eftpos, Mastercard and Visa cards. For small businesses, that means payment costs will still exist, but the way those costs are shown to customers may need to change.

This is not just a checkout problem. It affects pricing, invoice wording, payment terms, accounting records, bank reconciliation and the way you explain payment costs to customers.

Card surcharges are moving from a customer-facing add-on to an internal business cost that needs to be priced, reviewed and reconciled like any other operating cost.

Quick Answer

From 1 October 2026, the RBA says surcharging on debit and credit cards should end for eftpos, Mastercard and Visa cards. The ACCC has also said those card networks can ban businesses from applying card payment surcharges from that date, and businesses must still follow the current surcharging laws until the changes take effect.

For now, a small business that charges card surcharges should keep them no higher than the actual cost of accepting that payment type, disclose them clearly and avoid misleading customers about the final price. Before October 2026, review your merchant fees, invoice wording, checkout settings, price displays and accounting treatment so card costs do not become messy after the rule change.

Key Points

• The October 2026 change is about debit and credit card surcharges on eftpos, Mastercard and Visa.
• Card payment costs will not disappear; businesses need to decide whether to absorb them, adjust prices or offer discounts for lower-cost methods.
• Until the change takes effect, existing excessive surcharge rules still apply.
• Invoice and website wording should be reviewed before October 2026 so customers are not shown outdated surcharge messages.
• Accounting records should separate sales, card fees, merchant deposits and reconciliation differences clearly.

What Is Changing From 1 October 2026?

The RBA’s March 2026 card payments review concluded that surcharging on debit and credit cards should end from 1 October 2026. It also says maximum interchange fees for debit and consumer credit card payments will be lowered, and payment cost transparency will improve so businesses can compare providers more easily.

The ACCC’s card surcharge guidance explains the transition in practical terms: eftpos, Mastercard and Visa can ban businesses from applying card payment surcharges from 1 October 2026, and businesses must still comply with existing laws until then.

That difference matters. The change is not a reason to stop checking today’s surcharges. It is a reason to prepare before old pricing, invoice and checkout settings become stale.

What Still Applies Before October 2026?

Until the new arrangements take effect, Australian businesses that surcharge need to follow the current excessive surcharge rules.

The ACCC says a card surcharge must not be more than what it costs the business to process that payment type. It also explains that if a business charges the same surcharge across card types, the surcharge must not be higher than the lowest cost among those card types.

For a small business, the practical controls are:

1. Check the merchant statement, not a rough guess.
2. Separate debit, credit and other payment costs where your provider reports them.
3. Make sure any flat fee does not overcharge small transactions.
4. Show surcharges clearly before the customer pays.
5. Keep evidence of how the surcharge was calculated.

If a customer has no way to pay without a surcharge, the ACCC says the minimum surcharge payable generally needs to be included in the displayed price. That is easy to miss in online checkout flows, booking systems and card-only venues.

What Small Businesses Should Do Now

Use the next few months as a clean-up window. The worst approach is waiting until the week before 1 October 2026 and then trying to untangle checkout settings, invoice templates and merchant fees in a rush.

This review is also a chance to shop around. The RBA says new transparency measures should help businesses compare payment costs. If your card fees are high, do not simply bake them into prices without first checking whether a better payment plan, bank, acquirer or gateway is available.

How To Think About Pricing After Surcharges End

When surcharging ends, the cost of accepting card payments becomes more like rent, software, insurance or bank fees. It is still a business cost, but it may no longer appear as a separate card surcharge to the customer.

Small businesses have a few options:

• Absorb the cost if card fees are small and margins can handle it.
• Adjust prices modestly if card costs are material and most customers pay by card.
• Offer discounts for lower-cost payment methods, where appropriate and clearly explained.
• Review providers if current merchant fees are higher than comparable options.
• Change payment workflows if one channel creates unnecessary processing costs.

Do not make the decision from one transaction fee alone. Look at the whole pattern: average sale value, card mix, refund rates, online versus in-person payments, settlement timing, chargebacks and monthly terminal or gateway costs.

Update Invoices And Payment Terms

Payment terms should tell customers how and when to pay. Business.gov.au’s payment terms guidance says payment terms should explain accepted payment methods, when payment is expected, whether credit is offered and how overdue payments are collected.

Before October 2026, review:

• invoice footer wording that says “card surcharges apply”
• quote templates that mention payment fees
• website checkout notes
• booking pages and online forms
• payment reminder emails
• customer contracts or terms of trade
• point-of-sale signage

If your business invoices customers in Gimbla, keep the payment instructions simple: accepted methods, due date, bank details or payment link, and any terms that still apply. If your current process depends on a card surcharge line, plan what will replace it before the rule changes.

Keep The Bookkeeping Clean

Card surcharge changes can make reports messy if the accounting setup is unclear.

For example, card sales may settle into the bank account after merchant fees have been deducted. If the business records only the net deposit, sales may be understated. If it records gross sales but ignores merchant fees, bank reconciliation may not match.

The cleaner approach is usually:

1. Record the customer sale or invoice at the gross amount charged.
2. Record merchant or payment processing fees separately as an expense.
3. Match card deposits during bank reconciliation.
4. Review refunds, chargebacks and partial payments separately.
5. Check GST treatment with your accountant or BAS agent if payment fee handling is unclear.

Gimbla can help keep invoices, receipts, payments and bank reconciliation in the same workflow. The related guides to create an invoice, mark an invoice as paid and manage invoice reminders are useful starting points.

A Practical October 2026 Checklist

Use this checklist before the new surcharge settings start.

1. Download recent merchant statements and identify card payment costs.
2. Ask your provider what changes they will make before 1 October 2026.
3. Remove or rewrite outdated card surcharge wording from invoice templates.
4. Check checkout, booking, ecommerce and payment-link settings.
5. Review displayed prices where card payment is the normal or only payment method.
6. Decide whether prices, discounts or payment options need to change.
7. Update bookkeeping categories for merchant fees and payment processing costs.
8. Train staff who quote, invoice, collect payment or answer customer questions.
9. Reconcile card deposits after the change to catch unexpected fee treatment.

Keep the checklist practical. The aim is not to overcomplicate payments. It is to avoid a stale surcharge setting creating customer confusion or messy books.

Frequently Asked Questions

When Do Card Surcharge Changes Start In Australia?

The RBA says surcharging on debit and credit cards should end from 1 October 2026 for eftpos, Mastercard and Visa cards. Some other payment-cost transparency changes are scheduled later, including parts that take effect from 1 April 2027.

Can Businesses Still Surcharge Before 1 October 2026?

Yes, but the existing rules still apply. A surcharge must not be more than the business’s cost of accepting that payment type, and pricing must not mislead customers about the final amount payable.

Does This Mean Card Payments Are Free For Businesses?

No. Businesses may still pay merchant fees, gateway fees, terminal fees or other payment processing costs. The key change is that card surcharges on the affected networks are expected to end, so those costs need to be managed inside pricing and accounting.

Should I Increase Prices Now?

Not automatically. First review your actual payment costs, margins, customer payment mix and provider options. Some businesses may absorb the cost, some may adjust prices, and some may offer discounts for lower-cost payment methods.

In Short

The card surcharge change is a pricing and bookkeeping transition, not just a payment terminal update. Before 1 October 2026, check your current surcharge compliance, review merchant costs, update payment terms, remove stale invoice wording and make sure card fees are recorded cleanly in the books.

If you do that early, the rule change becomes a tidy admin project instead of a last-minute checkout surprise.