In short:
The Reserve Bank of Australia will remove card surcharges and cut fees, changing how payments are priced across the country. In Wyndham, many welcome clearer pricing, though some warn costs could be built into overall prices.
RBA Moves to End Card Fees
The Reserve Bank of Australia has decided to scrap card surcharges and cut fees in a move set to change how Australians pay at the checkout.
The bank’s Payments System Board has backed reforms aimed at lowering costs for businesses and simplifying payments for consumers after an extended consultation process.
Surcharges on debit, prepaid and credit cards across eftpos, Mastercard and Visa will be removed, ending a system in place for more than two decades.
The bank says it no longer works as intended, with many businesses applying flat surcharges and fewer Australians using cash.
Instead, payment costs are expected to be built into advertised prices, improving transparency at the register and aligning with how most consumers prefer to pay.
Interchange fees — the charges businesses pay to accept card payments — will also be reduced, with small businesses expected to benefit the most.
New transparency rules are also set to increase competition among payment providers and make it easier for businesses to shop around.
Most changes, including the removal of surcharging, are set to take effect on 1 October 2026, with further reforms, including caps on foreign-issued cards, to follow on 1 April 2027.
In Wyndham, many residents and business owners are expected to welcome the move as cost-of-living pressures continue. Shoppers are likely to benefit from clearer pricing, while businesses could see lower fees.
However, some concerns remain. Businesses may absorb costs into overall prices, and the removal of surcharging could reduce incentives to use lower-cost payment methods.
The bank has also flagged further consultation to examine regulating mobile wallets, buy-now-pay-later services and other parts of the payments system.
