$20,000 instant asset write off: What small businesses should know before EOFY
The Reserve Bank of Australia (RBA) has announced a ban on card surcharges from 1 October 2026. The RBA Conclusion Paper * confirms three key changes:
- Surcharges are banned from 1 October 2026Merchants will no longer be permitted to impose surcharges on card payments made via eftpos, Mastercard, and Visa networks, including debit, prepaid, and credit cards.
- Lower interchange fees for merchantsAt the same time, the RBA is reducing interchange fees on credit cards and says this should help lower payment processing costs for businesses, with small businesses expected to benefit the most.
- Greater transparency on payment feeDesignated card networks and large acquirers will be required to publish fee information, making it easier for merchants to compare providers and negotiate better deals.
Note: American Express and multi-party networks were not in scope of the RBA’s recent review, however a separate RBA consultation is being considered in mid-2026.
What this means for Australian businesses
The RBA has mandated the removal of surcharging from 1 October 2026, and has instructed acquirers, including card terminal providers, to remove surcharging functionality. Tyro will comply fully with all regulatory requirements.
If you currently apply surcharges, you will no longer be able to do so from 1 October 2026. This means card processing costs can no longer be passed on to customers as a separate line item.
If you don’t currently apply surcharges there may be no immediate pricing changes due to these regulations, but businesses should still review their current payment arrangements before October 2026. Over time, lower interchange fees are expected to reduce underlying acceptance costs.
What businesses should do now
The most practical thing to do now is understand your current setup and be ready to review your options.
Understand your current surcharge setup
If your business currently applies a surcharge, start by understanding which payment types are surcharged, what rates are applied, and how much those surcharge amounts contribute overall. This gives you a clearer view of the commercial impact once the ban takes effect.
Review how you manage payment costs
The right approach will depend on your business model, margins, and overall pricing strategy.
Merchants should consider their full cost base, not just card acceptance costs, when deciding how to respond to these changes. For those currently applying surcharges, this may be an appropriate time to review their overall pricing structure, including how costs are recovered across their products or services.
Any reduction in card acceptance costs will depend on your individual circumstances, including your pricing model, payment provider arrangements, and the mix of card transactions your business accepts.
Update customer-facing materials
From 1 October 2026, any existing signage or pricing that references surcharges will need to be removed or updated. This includes in-store signage, menus, online checkout messaging, and any customer communications that mention surcharges.
How Tyro can help
At Tyro, we’re focused on helping merchants understand what’s changing, what it means for your business, and what to expect as the reforms roll out.
For Tyro merchants, Tyro will automatically remove surcharging across all eftpos, Mastercard and Visa transactions on 1 October 2026. In most cases, there is nothing you need to do on the terminal side. However, if your surcharge is applied through an integrated POS system and then sent to the terminal, you may need to review those settings separately. If you’d prefer to remove your surcharge settings earlier, you can do so at any time through the Tyro Merchant Portal.
We’ll continue to keep you updated so you can assess what these changes may mean for your business. If you’d like to better understand the RBA changes or discuss your options, reach out to Tyro’s local support team.
Tyro is already aligned, with transparent pricing models and clear fee structures.
Not sure how the surcharge ban impacts your business? Get in touch to understand your current setup, your cost of acceptance, and what to expect before October.
Frequently asked questions
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When does the RBA surcharge ban take effect?
The surcharge ban takes effect on 1 October 2026.
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Which cards are covered by the RBA surcharge ban?
The ban covers eftpos, Mastercard, and Visa networks, including debit, prepaid, and credit cards.
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Will my payment processing costs actually go down?
The RBA is reducing interchange fee caps – particularly for consumer credit cards (from 0.8% to 0.3%) – which should lower payment acceptance costs for businesses. For international card transactions, the current cap of 1% will remain in place until 1 April.
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Can I raise my prices to cover lost surcharge income?
The RBA has acknowledged that some merchants may choose to review their pricing structure to reflect payment processing costs as part of their broader business pricing, strategy or cost reviews.
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Does the ban require legislation?
No. The RBA uses its existing regulatory powers over the payments system to implement these changes, which is why they can take effect as early as 1 October 2026.
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