Australia Card Surcharge Ban: Rules, ATO Update and Calculator
Australia’s new card-surcharge rules began on 1 October 2026. Businesses can no longer add card-payment surcharges for Visa, Mastercard, eftpos and American Express transactions covered by the new network rules. A separate ATO announcement on 9 October extended the transition for credit-card tax payments until 30 June 2027.
Use this guide to check which card surcharges are affected, which other fees may remain, what businesses can do about payment-processing costs, and how the ATO credit-card update affects taxpayers.
Australia card surcharge ban: the quick answer
From 1 October 2026, businesses can no longer add a separate payment surcharge for covered Visa, Mastercard, eftpos and American Express credit, debit or prepaid card transactions. The changes followed Reserve Bank of Australia reforms and the card networks’ introduction of no-surcharge rules. The ACCC says merchants can still reflect their business costs in general prices, but they must not mislead customers about prices or the reasons for price increases.
The ban is specifically about a surcharge for paying by a covered card. It does not automatically abolish every other fee a business might charge. Weekend or public-holiday surcharges, booking fees and service fees may still be possible where the fee is genuinely separate from the payment method and other rules are met.
ATO credit-card payments: what changed on 9 October 2026?
On 9 October 2026, the Australian Government announced that the Australian Taxation Office (ATO) will continue accepting credit-card transactions until 30 June 2027. The announcement provides a longer transition for small businesses and other taxpayers while the government consults on alternative arrangements and support for people who rely on credit-card payments.
This followed the ATO’s earlier plan to phase out its direct credit-card payment option in late 2026. The extension is temporary; it does not announce that the long-term change has been cancelled.
Until 30 June 2027
The government says the ATO will continue accepting credit-card transactions during the extended transition period.
After 30 June 2027
Treasury says credit-card payments will remain available through third-party providers, alongside other free or low-fee options such as debit card and bank transfer. Check the provider’s terms and any fee before paying.
The announcement also asks the ATO to consult on options for people experiencing financial hardship and on alternative arrangements for businesses and individuals unable to pay through other methods. Those discussions mean payment arrangements may evolve; check the ATO’s current payment guidance before a tax payment is due.
Official source: Treasury Ministers — ATO to continue accepting credit cards until 30 June 2027 .
Which card surcharges are banned in Australia?
The ACCC’s guidance says businesses can no longer charge consumers a separate surcharge for payments using Visa, Mastercard, eftpos or American Express cards from 1 October 2026. The covered payment types include credit, debit and prepaid cards for the relevant networks.
| Payment type | Position from 1 October 2026 | What to check |
|---|---|---|
| Visa credit cards | No separate card-payment surcharge under the network’s no-surcharge rules. | Ask the payment provider if your terminal or checkout still adds one. |
| Visa debit and prepaid | No separate card-payment surcharge under the relevant rules. | Review both in-store and online checkout settings. |
| Mastercard credit, debit and prepaid | No separate card-payment surcharge under the network’s no-surcharge rules. | Check merchant contracts and payment-provider configuration. |
| eftpos debit and prepaid | No separate card-payment surcharge under the relevant rules. | Check terminal settings and any surcharge prompts. |
| American Express | American Express also announced no-surcharge rules from 1 October 2026. | Confirm the applicable American Express merchant terms. |
The Reserve Bank of Australia explains that the change was implemented through the card networks’ no-surcharge rules. Merchants should check the rules and contracts that apply to their own payment provider and accepted card types. This guide is an explanatory summary, not legal advice.
Official guidance: ACCC card-surcharge guidance for businesses and RBA FAQs on removing card payment surcharges.
Which fees can businesses still charge?
The rules remove card-payment surcharges for the covered payment types. They do not amount to a general ban on every fee added to a bill. The ACCC says businesses must make sure other fees are genuine, properly disclosed and not used to disguise a prohibited card surcharge.
Fees that may still apply
- Weekend or public-holiday surcharges, where otherwise permitted.
- Booking fees or service fees that are genuinely separate from the payment method.
- Other non-card-related fees that comply with applicable consumer and price-display rules.
What businesses should not do
- Add a fee only because a customer pays with a covered card.
- Rename a card surcharge as a “handling”, “service” or other fee to get around the rule.
- Advertise a misleading price or make false claims about why prices increased.
Can a business increase its prices instead?
Generally, yes. The ACCC says businesses can recover card-acceptance costs through their overall prices rather than charging a separate card surcharge. The total price displayed to consumers must comply with applicable price-display requirements, and businesses must not mislead customers about the amount payable or the reason for an increase. This does not mean businesses are required to raise prices; pricing remains a commercial decision.
For official examples and limits, read the ACCC’s guidance on card surcharges and price displays.
Card Surcharge Ban: Business Cost Calculator
Estimate card-processing costs and compare them with the surcharge amount you previously collected.
Enter your own provider rate. Example defaults are illustrative only and are not an official Australian average or a recommended fee.
The former surcharge amount is shown only to compare your old pricing arrangement. The new rules do not permit you to continue charging a separate surcharge for covered card payments. The “gap” is not a guaranteed profit or loss: actual processing costs, surcharge coverage, card mix, refunds, GST treatment and other costs can differ.
Privacy: the calculation runs in your browser. These inputs are not sent to UltimateInfoGuide by this tool.
What Australian businesses should do after the surcharge changes
If you accepted cards and previously added a surcharge at checkout, check the full customer journey rather than only the card terminal. The rule may affect point-of-sale devices, payment gateways, ecommerce checkouts, invoices, menus, booking pages and customer communications.
- Disable covered card surcharges. Check terminals, ecommerce plugins, recurring billing rules and payment links. Ask your provider if a setting is controlled remotely.
- Review the fee you actually pay. Check the merchant statement for percentage fees, fixed transaction fees, terminal rental and any monthly minimums. Use the calculator above as an estimate, not a substitute for your contract.
- Review your overall pricing. If your business needs to recover costs, assess them alongside wages, rent, supplier prices and other costs. Build any necessary change into the overall price rather than a prohibited card-specific surcharge.
- Check displayed prices and disclosures. Make the total price clear before the customer commits. Don’t label a card surcharge as another fee in an attempt to avoid the rules.
- Ask your provider about payment options. Compare blended rates, fixed fees, terminal fees, settlement times, refunds and any contract terms. A lower percentage may not be cheaper for a business with many small transactions.
- Keep the ATO change separate. If your business pays tax by credit card, note the 30 June 2027 transition date and monitor ATO guidance. The ATO change does not give ordinary businesses an exemption from the general card-surcharge rules.
The Australian Government’s business guidance recommends reviewing pricing strategy, understanding the cost of card payments, talking to payment providers and updating any systems that automatically apply surcharges. Read business.gov.au’s summary of the new rules.
What consumers should do if a business still adds a card surcharge
From 1 October 2026, consumers should not be charged a separate surcharge for covered Visa, Mastercard, eftpos or American Express card payments. If you see one, first check what the charge is for and whether it is truly based on the card used to pay.
- Ask the business to explain the fee and show how the total price has been calculated.
- Keep the receipt, menu, online checkout screenshot or invoice if you believe the business is still applying a card surcharge.
- For a network surcharge issue, contact the business or its payment provider/card network as appropriate. The ACCC says it does not directly enforce card-network no-surcharge rules, but it can address misleading pricing under Australian Consumer Law.
- Report suspected misleading price displays to the relevant state or territory consumer protection agency or the ACCC, using their current guidance.
Do not assume every extra line item is a prohibited card surcharge. A genuine weekend surcharge, booking fee or unrelated service fee can be treated differently, provided the fee and price display comply with the applicable rules.
Consumer guidance: ACCC card-surcharge guidance for consumers.
Australia card surcharge ban FAQs
When did Australia’s card surcharge ban start?
The new no-surcharge rules for covered Visa, Mastercard and eftpos card payments began on 1 October 2026. American Express also announced no-surcharge rules from that date.
Can businesses still charge a credit-card surcharge in Australia?
From 1 October 2026, businesses cannot add a separate surcharge for covered Visa, Mastercard, eftpos and American Express card payments. Businesses should check their card-network rules and merchant agreements for details.
Has the ATO credit-card payment change been delayed?
Yes. On 9 October 2026, the government announced that the ATO will continue accepting credit-card transactions until 30 June 2027. After that date, credit-card payments will continue through third-party providers, alongside other free or low-fee methods such as debit card and bank transfer.
Can I pay the ATO by credit card until June 2027?
The government’s 9 October 2026 announcement says the ATO will continue accepting credit-card transactions until 30 June 2027. Confirm the available method and any applicable fee using the ATO’s current payment instructions before paying.
Does the ATO extension delay the whole Australian surcharge ban?
No. The ATO payment transition is separate. General card-surcharge changes began on 1 October 2026 as planned; the ATO extension concerns the transition for tax payments.
Can restaurants still charge weekend or public-holiday surcharges?
Those surcharges are not covered by the card-payment no-surcharge rules and may still be charged where otherwise permitted. Businesses must follow applicable price-display and consumer-protection requirements.
Can a business increase its prices to recover card-processing costs?
Yes. The ACCC says a business can reflect card-acceptance costs in its overall prices instead of charging a separate card surcharge. It must not mislead customers about the price or the reasons for an increase.
Can a business rename its card surcharge as a service or handling fee?
Not if the fee is effectively a surcharge imposed because the customer pays by card. The ACCC warns businesses not to avoid no-surcharge rules by describing a card surcharge as another type of fee.
How much does card processing cost Australian businesses?
There is no single rate for every business. Costs depend on the payment provider, card mix, transaction size, fixed fees, terminal rental and contract terms. Use the calculator on this page as an illustrative estimate, then replace the example inputs with your actual merchant rates.
Who enforces the new no-surcharge rules?
The card networks and payment service providers enforce their network rules and merchant contracts. The ACCC and state and territory consumer protection agencies enforce Australian Consumer Law, including rules against misleading pricing.
Official sources and update method
This guide was updated on 9 October 2026 after the Australian Government’s announcement on the ATO transition. The summary prioritises government and regulator information; individual merchant obligations can also depend on card-network rules and provider contracts.
- Treasury Ministers: ATO to continue accepting credit cards until 30 June 2027 (9 October 2026)
- ACCC: Card surcharges — business guidance
- ACCC: Card surcharges — consumer guidance
- Reserve Bank of Australia: FAQs on removing card payment surcharges
- business.gov.au: New card payment surcharge rules now apply
UltimateInfoGuide is an independent information website and is not affiliated with or endorsed by the Australian Government, the ATO, the ACCC or the Reserve Bank of Australia. This page is general information, not legal, tax or accounting advice. Always verify current rules with the relevant official source and your payment provider.