ACAPMA has expressed its disappointment at the RBA’s decision this week on banning card surcharges.
ACAPMA is a member of the Independent Payments Forum (IPF), an industry body specialising in payment issues and represents more than 120,000 retailers. The IPF has been extremely active, with the support of ACAPMA, in prosecuting the case on behalf of retailers.
While there will be a significant cut in interchange (wholesale) fees, the RBA banned surcharging and completely missed an opportunity for important policy reform on issues such as scheme fees, blended rates, and Direct Least Cost Routing.
The main points in the RBA decision:
- Removes prohibition on ‘no-surcharge’ rules for all designated card networks (debit, prepaid, credit) – eftpos, Mastercard and Visa cards – from Oct 2026
- No ban on Amex surcharges
- Increases debit interchange originally proposed at 6c to 8c
- Increases interchange on commercial credit cards originally proposed at 0.3% to 0.8% (including many rewards cards)
- Introduces interchange caps for all foreign-issued card transactions at 1.0 per cent – well under cost of those payments for most small businesses
- Sticks with the proposed reduction for domestic credit to 0.3%
Changes to businesses will come into effect from October 1, 2026. The introduction of an interchange cap on foreign cards will start six months later on April 1, 2027.
The RBA claimed the surcharge bans would make card payments “simpler and more transparent for consumers and merchants” and save $1.6 billion a year, but a host critics point out the cost won’t disappear – they will just turn up in higher prices for customers.
ACAPMA
