Australia

Australia Proposes Scrapping Card Payment Surcharges

Published JUL 15 2025

Story

Above: An illustration photo, taken in Krakow, Poland on March 29, 2024, showing MasterCard and Visa cards. Image credit: Jakub Porzycki/Contributor/NurPhoto/Getty Images

The Facts

The Reserve Bank of Australia (RBA) on Tuesday proposed eliminating surcharges on debit and credit card payments for EFTPOS (Electronic Funds Transfer at Point of Sale) Mastercard and Visa transactions, estimating the move would save consumers approximately AU$1.2 billion annually or about AU$60 per card-using adult.
Reuters
Guardian
The Nightly
The central bank found that cash usage declined dramatically from 70% of consumer payments in 2007 to just 13% in 2022, making it increasingly difficult for consumers to avoid surcharges by using alternative payment methods.
Reuters
The Conversation
Under the proposal, interchange fees paid by businesses would be capped and lowered, with the RBA estimating that 90% of Australian businesses would benefit, particularly small merchants who currently pay higher fees.
Indailysa
SBS News
The reforms would go beyond the federal government's previous commitment to ban only debit card surcharges from January 2026, instead targeting both debit and credit card fees with implementation planned for July 2026.
Guardian
Daily Mail
Payment service providers and card networks would be required to publish their fee structures to increase transparency and competition, while the RBA opened a consultation period until Aug. 26 for industry feedback.
MINT
Capital Brief
Industry representatives expressed mixed reactions, with Visa arguing interchange fees fund innovation and fraud protection, while the Australian Restaurant and Cafe Association warned the changes would drive up menu prices across hospitality.
Reuters
Guardian

Sources Split

LEFT

CENTER

RIGHT

ESTAB
CRIT

CENTER

PRO
ESTAB

The Spin

Narrative A

The reform introduced by Albanese's Labor administration finally addresses an outdated system that penalizes consumers for using the most convenient payment method. With cash usage plummeting to just 13% of transactions, surcharges have become unavoidable fees instead of useful price signals. This proposal delivers real savings of AU$60 per adult annually while forcing greater transparency in a murky payments system.

Prime Minister of Australia

The Conversation

Narrative B

Eliminating surcharges will simply hide costs rather than reduce them, forcing businesses to embed payment fees into product prices for all customers. Small businesses already struggling with high interchange fees will face additional compliance costs and menu repricing, ultimately passing these expenses to consumers through higher base prices.

The Sydney Morning Herald

The Nightly