If you ask me, few things are more annoying than tapping your card and realising you've been charged an extra 1.5 per cent, just for your method of paying. From October 1, however, the dreaded card surcharge will be on its way out.
Beginning next month, businesses will no longer be able to add a surcharge to payments made with eftpos, Mastercard or Visa cards. Here's what it will mean next time you tap your card.
Why are card surcharges being removed?
Surcharges on card payments were introduced over two decades ago, at a time when cash payments were more common. In short, the idea was that if using a card cost a business more, that cost would be put back on to the customer, to encourage them to choose a cheaper payment method.
Obviously, things have changed considerably since then. According to the Reserve Bank, cash accounted for around 15 per cent of in-person transactions in 2025 – as opposed to 69% of payments back in 2007.
The RBA also found that consumers now find it difficult to avoid surcharges, particularly as fewer people carry cash, while businesses increasingly use payment plans that charge the same fee across different types of cards. In other words, surcharges are no longer working as intended, and businesses are actually earning profits from applying them.
As a result, the RBA decided to remove surcharging across eftpos, Mastercard and Visa from October 1, with the aim of making the price you see at checkout more reflective of what you actually pay.
Things won't necessarily get cheaper
While the surcharge itself will disappear, businesses will still have to pay fees to accept card payments. This means that many businesses might incorporate these fees into the price of their goods or services – so the $5 coffee that currently comes with a 10-cent card surcharge could simply become a $5.10 coffee.
The difference is that instead of discovering the extra cost after you’ve already decided what you’re buying, it should be reflected in the advertised price.
Other surcharges will remain
Importantly, this change only applies to surcharges specifically attached to paying by card. Weekend and public holiday surcharges aren't going anyway, nor are booking fees or service fees,.
