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Australia to ban surcharging on payment cards, deliver savings worth A$2.5 bln
- On Tuesday, the Reserve Bank of Australia announced a ban on debit and credit card surcharges effective October 1, 2026, while also lowering interchange fee caps to reduce business costs.
- Following 18 months of consultation with more than 250 written submissions and 150 stakeholder meetings, the RBA determined the surcharge framework introduced two decades ago no longer steers consumers toward efficient payment choices.
- The RBA estimates dropping the domestic interchange cap from 0.8 to 0.3 per cent will save businesses about $910 million annually, with 16 per cent of Australian businesses currently applying surcharges.
- Brad Kelly of the Independent Payment Forum warned small businesses may pass transaction costs to consumers through higher prices, while chief executive Stephen Ferguson argued the decision abandons small businesses amid cost-of-living pressures.
- Payment transparency measures and an interchange cap for foreign cards take effect April 1, 2027, as the RBA plans a mid-year public consultation on mobile wallets and 'buy now pay later' services.
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37 Articles
37 Articles
Coverage Details
Total News Sources37
Leaning Left5Leaning Right7Center3Last UpdatedBias Distribution47% Right
Bias Distribution
- 47% of the sources lean Right
47% Right
L 33%
C 20%
R 47%
Factuality
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