Hawkesbury cafés, retailers, restaurants, tradies and other businesses are being urged to update their payment systems before new card-surcharging rules begin on October 1.
Under reforms announced by the Reserve Bank of Australia, businesses will no longer be permitted to impose a separate surcharge when customers pay through the eftpos, Visa or Mastercard networks using debit, prepaid or credit cards.
The changes will apply to in-person and online payments, meaning businesses using terminals, QR-code ordering, payment links or internet checkouts will need to ensure automatic surcharging is disabled.
The Australian Banking Association said banks had been contacting business customers to help them prepare.
ABA chief executive Simon Birmingham said the RBA estimated that about one in six businesses currently applied a card surcharge.
“From next month, the price consumers see in the aisle or on the menu will be the price they pay at the checkout,” Mr Birmingham said.
For Hawkesbury residents, the change should mean the advertised price is no longer increased by a percentage or fixed card fee at the point of payment.
However, the removal of surcharges does not mean businesses will no longer incur payment-processing costs. Businesses may review their advertised prices to recover those costs, although they cannot add a separate surcharge for payments made through the covered card networks.
Local businesses should contact their bank, terminal supplier or payment-service provider if they are unsure whether their surcharge function will be switched off automatically.
Before October 1, businesses should check:
- countertop and mobile payment terminals;
- point-of-sale systems;
- websites and online stores;
- QR-code ordering platforms;
- invoices and electronic payment links;
- menus, price lists and customer signage; and
- instructions provided to employees processing payments.
The reforms will also lower the interchange-fee caps applying to domestic card transactions. Interchange fees are one component of the total cost paid by a business for accepting card payments.
The cap applying to domestic personal credit-card transactions will fall from 0.8 per cent to 0.3 per cent. The Australian Banking Association said the RBA expected lower payment costs to help offset some of the revenue businesses would lose through the surcharge ban.
New interchange-fee caps for foreign-issued cards are scheduled to take effect on April 1, 2027.
A business’s total payment cost may also include charges imposed by its bank, payment processor, terminal provider or software platform. The reduction in interchange fees therefore may not produce an equivalent reduction in every business’s merchant fees.
Business operators have been encouraged to examine their merchant statements, ask providers for a clear explanation of their fees and compare payment services where appropriate.
Consumers should also remain aware that payment methods outside the eftpos, Visa and Mastercard networks may be subject to different arrangements. Businesses using American Express, buy-now-pay-later services or other payment platforms should seek advice from their provider about how the reforms apply.
The central purpose of the changes is to make prices clearer and easier to compare. While businesses may adjust their advertised prices, customers should not discover an additional covered-card surcharge only when they tap their card or enter payment details online.
Further information is available through the Reserve Bank of Australia’s card-payment reform information. Businesses requiring assistance should contact their bank or payment-service provider before October 1.
