Card Surcharge Ban in Australia: How Will You Pay Now 2026

Australia's card surcharge ban takes effect this Thursday, ending the extra fees Australians have long paid on credit and debit card purchases. The change promises to simplify payments, but it also triggers a wave of adjustments from businesses, banks, and consumers. How will it affect the way you pay?

What the Card Surcharge Ban Means for Consumers

From Thursday, businesses can no longer pass on the cost of card processing fees to customers as a surcharge. That means the price you see is the price you pay—no more 1-2% added at checkout. The Reserve Bank of Australia (RBA) introduced the ban to improve price transparency and reduce the hidden costs of digital payments.

However, the ban doesn't stop businesses from recovering costs in other ways. Some are already adjusting: an after-school care provider has stopped accepting card payments entirely, and a school canteen service now enforces a $10 minimum for card transactions. These moves aim to manage processing expenses without surcharges.

How Businesses Are Responding to the Surcharge Ban

With surcharges off the table, businesses are exploring alternatives. The RBA and the Australian Competition and Consumer Commission (ACCC) suggest offering discounts for certain payment methods, such as cash or PayID, instead of imposing surcharges. This approach encourages consumers to choose cheaper-to-process options while staying within the rules.

Major banks and card providers are also trimming cardholder benefits, like rewards points and travel insurance, to offset their own revenue losses from the surcharge ban. These changes could make premium cards less attractive, potentially shifting consumer preferences.

Comparison: Payment Methods After the Ban

Is Cash Making a Comeback?

With surcharges banned, some businesses may steer customers toward cash by offering discounts. According to the RBA, about 15% of payments in 2025 were made in cash, and around half of Australians used cash in a typical week. Notably, the number of people carrying cash increased from 47% in 2022 to 50% in 2025—the first rise since the RBA began monitoring in 2007.

Jason Bryce from Cash Welcome argues that the surcharge ban could accelerate this trend. "Cash is free to use and doesn't come with hidden fees," he says. "Businesses that offer cash discounts are already seeing more customers paying with notes and coins."

Key Takeaways for Australian Consumers

• No more surcharges: The price you see is the price you pay for card transactions.
• Discounts may replace surcharges: Businesses can offer discounts for cash or PayID.
• Card benefits may shrink: Banks are cutting rewards to offset lost revenue.
• Cash usage is rising: More Australians are carrying cash, and discounts could boost it further.
• Watch for minimums: Some businesses now set minimum card spend to manage costs.

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