The card surcharge ban is a week old. Cafes lift menu prices, private schools drop card payments and renters wait to see the fallout
From October 1 Australian businesses cannot add a surcharge to EFTPOS, Visa or Mastercard debit, credit or prepaid card payments. The Reserve Bank has also set a lower cap on domestic credit-card interchange fees, 0.3 per cent, with more changes from April 1, 2027. Weekend and public-holiday surcharges under state rules, equal fees for all payment types and cash discounts remain allowed. Sources differ on whether American Express is covered. The AFR reports cafe and restaurant prices rising and private schools dropping card payments, and the Herald reports that some renters will be left in the lurch.
The ban moves a cost from the customer who chose a card to every customer. The RBA's own consultation warned of smaller rewards, shorter interest-free periods or higher annual fees.
You should no longer see a card surcharge on the bill. You may see higher listed prices and fewer card rewards.
Hidden fees are gone and shoppers can compare prices honestly.
The cost has not vanished, it has been spread across prices, and critics argue it adds to inflation.
Watch the CPI for hospitality prices and your own card's rewards. One week is too early to call the effect.
DailyDrop Australia edition No. 1 · Morning · MON., OCT. 5, 2026