RBA surcharge ban: What it means and 5 tips for Australian merchants to get ready

Quick Summary: The RBA’s proposed ban on card payment surcharges, planned for July 2026, represents a significant change for Australian merchants.

To prepare, merchants should audit processing costs, refine pricing strategies, and adopt smarter payment solutions. Tyro is well-positioned to support businesses through this change, offering flexible, data-driven tools that help streamline payments in a surcharge-free environment.

Source: https://www.rba.gov.au/payments-and-infrastructure/pdf/review-of-merchant-card-payment-costs-and-surcharging.pdf?v=2025-07-14

The new reality: what’s changing 

The RBA’s comprehensive proposal aims to eliminate surcharges on EFTPOS, Mastercard, and Visa transactions from July 2026. This change is reported to impact an estimated $1.2 billion in annual surcharges currently paid by Australian consumers. The changes are a part of a broader reform package that includes reducing interchange fees and requiring card networks to publish transparent pricing.

Currently, around 10% of small businesses and 12% of large merchants use surcharging. These businesses may face the most significant adjustments, potentially needing to revise pricing strategies and possibly retrain staff. Sectors like hospitality, transport, and tourism, which have traditionally relied on surcharging, may need to look at these adjustments.

Consumers might no longer pay card surcharges, which reportedly cost the average card-using adult approximately $60 per year. The RBA plans to reduce interchange fees to reduce the cost of card acceptance. This means that small businesses that are already absorbing card costs, rather than surcharging them to the consumer, may see a cost benefit in July 2026.

5 tips for Aussie merchants to prepare for the proposed surcharge changes

1. Review and optimise payment processing costs 

The first priority is conducting a comprehensive audit of current payment processing arrangements. For merchants, payments via the EFTPOS network can be significantly less expensive than payments via international Debit Mastercard or Visa Debit networks.

2. Adapt pricing strategies 

Businesses currently using surcharges should consider whether to absorb costs or adjust base prices. The RBA estimates that if surcharges are removed, consumer prices overall might increase by only 0.1 percentage point, suggesting that modest price adjustments could be sufficient.

3.Explore alternative payment methods

The upcoming surcharge ban presents a timely chance for merchants to reassess and optimise their payment setups. Tyro, with its suite of in-store, online, and mobile payment tools, is ready to support businesses through this potential shift. With transparent, card-specific pricing and a structure designed to incorporate lowered interchange and scheme fees, Tyro aims to help merchants streamline transactions, reduce costs, and enhance the customer experience, all while adapting to a possible surcharge-free environment.

4. Optimise your payment strategy with smarter tools

Use payments orchestration and data insights to route transactions more efficiently and match customer preferences. By choosing the right mix of payment providers and channels, merchants can reduce costs and deliver a better checkout experience. Integrated solutions like Tyro’s all-in-one platform help streamline operations and improve cost efficiency, even without relying on surcharges.

5. Turn transparency into a customer advantage

Use the proposed update as an opportunity to build trust. Most Australians don’t fully understand when surcharges apply, so removing them can simplify the experience. Promote clear “what you see is what you pay” pricing and equip your staff to handle customer questions confidently – it could set your business apart. 

Looking forward: the merchant perspective

For merchants, it’s a signal to choose payment partners that prioritise transparency over complexity, with industry-specific value adds that create seamless payment experiences for customers. The businesses that adapt now, with smarter strategies and trusted providers, would be best placed to thrive in a surcharge-free future.