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.
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.
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