The Reserve Bank of Australia (RBA) announced on Mar. 31 that it has published a Conclusions Paper outlining final decisions from the Payments System Board regarding merchant card payment costs and surcharging. The Board decided to implement reforms including removing surcharges on debit, prepaid, and credit cards for major networks, reducing interchange fees, and increasing transparency in fee structures.
These changes are intended to make card payments simpler for consumers and more competitive among payment service providers. The RBA said that the current surcharging framework is no longer effective due to widespread uniform surcharging by businesses, enforcement challenges, and decreased cash usage. The removal of surcharges aligns with consumer preferences for transparent pricing.
Other key measures include lowering caps on interchange fees paid by Australian businesses when accepting both domestic and overseas card payments. According to the RBA, small businesses are expected to benefit most because they often pay fees close to existing caps. Transparency over fees charged by card networks will also be increased so that businesses can compare options more easily.
Most reforms will take effect from Oct. 1, 2026, including the removal of surcharges and reductions in domestic interchange caps. Additional changes such as capping foreign card interchange fees and enhancing transparency requirements will begin Apr. 1, 2027 to allow time for industry adjustment.
According to the official website, Michele Bullock has served as governor of the Reserve Bank of Australia since Sept. 18, 2023, chairing its Governance, Monetary Policy and Payments System boards alongside deputy governor Andrew Hauser. The RBA manages Australia’s gold and foreign exchange reserves according to its official website. It pursues goals including maintaining currency stability and promoting economic welfare according to its official website. Established in 1998 by the RBA according to its official website, the Payments System Board aims at improving safety and efficiency in Australia’s payments system.
Looking ahead, a public consultation is planned for mid-2026 regarding possible regulation of other retail payment areas not covered in this review such as mobile wallets or buy-now-pay-later services.
