The RBA wants to ban surcharges — here's what's actually on the table

You've probably seen the headlines. "Card surcharges to be banned." It sounds dramatic, and your inbox has likely filled with worried questions from staff or your accountant.

Here's the calm version: the RBA has published proposals, not rules. Below is exactly what they're proposing, what it could mean for your takings, and what's worth doing now versus what can wait.

First, what actually happened

In July 2025 the Reserve Bank released a consultation paper as part of its review of retail payments regulation. A consultation paper is the RBA floating ideas and asking the industry, "what do you think?"

So nothing has changed yet. No new law, no switch flipped. The RBA is gathering feedback before it decides anything. That matters, because the final shape could shift.

The why is simple. For years, surcharging was meant to nudge shoppers toward cheaper payment methods. The RBA's view is that it's stopped doing that job well, so they're rethinking the whole framework.

Proposal one: no more surcharging on eftpos, Mastercard and Visa

This is the big one. The RBA is proposing to remove surcharging on eftpos, Mastercard and Visa cards.

In plain terms, you wouldn't be able to add that little "1.5% card fee" at the till on those networks. The cost of accepting cards would sit with you, not get passed to the customer at checkout.

That sounds like a hit, and for some businesses it is. But it's paired with the next two proposals, which are designed to bring your underlying costs down. Read them together, not in isolation.

Proposal two: lower interchange fee caps

Interchange is a wholesale fee baked into every card payment. You don't see it on a receipt, but it's a chunk of what you pay to accept cards. It flows to the customer's bank in the background.

The RBA is proposing to lower the caps on these fees. Lower interchange means a lower base cost for accepting cards, which is meant to soften the blow of losing the surcharge.

It won't be a perfect one-for-one swap for every business. But the intent is clear: take away the surcharge, and trim the cost it was covering.

Proposal three: clearer fees, so you can actually compare

The third proposal is about transparency. The RBA wants card fees to be easier to see and understand.

If you've ever tried to compare two payment providers and given up, you'll know why this matters. Bundled rates and vague "blended" pricing make it hard to know what you're really paying.

Clearer fees mean you can shop around properly. Over time, that competition is meant to push everyone's costs down.

So is the surcharge ban definitely happening?

Not yet. As at August 2025, these are proposals open for consultation. The RBA asked stakeholders for feedback before making a final decision.

The direction of travel looks fairly clear, but the details, timing and exact caps could still move. So the smart play is to prepare, not panic.

How to prepare without overreacting

Here's a short list you can work through this month:

• Know your real cost of acceptance. Pull your last few merchant statements and work out your effective rate. If a surcharge disappears, this is the number that hits your margin.
• Check whether you're on least-cost routing. This sends contactless debit down the cheapest network, and it's one of the simplest ways to lower fees right now. Many businesses still aren't switched on.
• Ask your provider two questions. "What's my all-in rate?" and "Am I on least-cost routing?" If the answers are vague, that tells you something.
• Model a small price tweak, just in case. If you currently surcharge, sketch what absorbing that cost looks like. Often it's a few cents per item, not a crisis.
• Don't rip anything out yet. Nothing's law. Avoid rushed contract changes based on a consultation paper.

Where a modern POS quietly helps

When fees and pricing are in flux, you want to see your numbers without a spreadsheet marathon. A cloud POS like Weeklify shows your card costs and lets you adjust pricing in a few taps, so if the rules change, you can respond the same afternoon, not next quarter.

Want to stay across it?

Keep an eye on your merchant statements over the next few months, and bookmark this page. We'll update it when the RBA makes its call.

Sources: RBA — Review of Retail Payments Regulation: July 2025 Consultation Paper; RBA — Least-cost Routing of Debit Card Transactions

This article is general information only and reflects proposals as at August 2025. It isn't financial or legal advice. For advice specific to your business, please speak to a qualified adviser.

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