Still ahead today, RBA March meeting minutes:
Summary:
- RBA to ban card surcharges on eftpos, Mastercard and Visa networks
- Changes take effect October 1, 2026; foreign card caps from April 2027
- Interchange fee caps to lower costs for businesses
- Total savings estimated at A$2.5bn annually
- Consumers to save ~A$1.6bn; businesses ~A$900m
- RBA to expand transparency and consult on BNPL, mobile wallets
The Reserve Bank of Australia has announced sweeping reforms to the country’s payments system, including a ban on card surcharges and a reduction in interchange fees, in a move expected to deliver around A$2.5 billion in annual savings to consumers and businesses.
Following a year-long review, the central bank said it would prohibit surcharges on debit and credit card payments across eftpos, Mastercard and Visa networks from October 1, 2026. The RBA said the existing surcharge framework, introduced more than two decades ago, no longer functions effectively in an environment where card usage has become dominant and enforcement has proven increasingly difficult.
The changes are designed to simplify pricing for consumers, ensuring that the displayed price is the final price paid at the point of sale. The RBA estimates that removing surcharges will save Australian consumers around A$1.6 billion annually.
At the same time, the central bank will lower caps on interchange fees, the charges paid by businesses to card issuers, reducing overall payment acceptance costs by an estimated A$900 million per year. Smaller businesses are expected to benefit most from the reduction in wholesale payment costs.
Additional measures include increased transparency requirements for card networks and payment providers, aimed at improving competition and pricing clarity within the system. The RBA will also extend interchange fee caps to foreign-issued cards from April 2027.
Looking ahead, the central bank plans to launch a public consultation in mid-2026 on further reforms to the payments ecosystem, including potential regulation of mobile wallets, buy now pay later services and other emerging digital payment channels.
The overhaul reflects a shift toward a simpler, lower-cost payments system, aligning with broader trends in declining cash usage and increasing reliance on electronic transactions across the Australian economy.
