RBA Seeks July 2026 Ban on Card Surcharges, Cuts Fee Cap

The Reserve Bank of Australia has opened consultation on sweeping changes to card-payment rules that would abolish merchant surcharges on debit and credit transactions and further tighten the cap on interchange fees paid by businesses. The central bank estimates consumers would save about A$1.2 billion (US$790 million) each year if surcharges were scrapped. Cutting the interchange-fee ceiling is projected to trim a similar amount from merchants’ costs, with small businesses expected to reap the largest share of the benefit. Under the proposal, card networks such as eftpos, Visa and Mastercard would be allowed to prohibit surcharging, reversing a restriction the RBA introduced two decades ago to spur price signals when cash was still dominant. Providers would also be required to publish wholesale fees to improve price transparency across the payments chain. The measures would take effect on 1 July 2026, subject to feedback during a six-week consultation period and a final decision later this year. The changes would rely on the RBA’s existing regulatory powers and would not need new legislation, although the government could impose its own ban if surcharges persisted.