Current system is “outdated and inefficient”.

 

The Reserve Bank wants to end debit and credit card surcharges in Australia in a move it says would save consumers $1.2 billion each year — or around $60 for every adult using a card.

 

Under the central bank's proposal, the EFTPOS, Visa and Mastercard networks would be allowed to ban surcharges — something the RBA currently prohibits. 

 

The changes are slated to take effect from July 2026, after a period of consultation, and would take effect without needing legislation.

 

An RBA review found the current system was outdated and no longer achieving its aim of steering consumers towards more efficient payment methods as cash usage declined.

 

"Our goal is a more competitive, efficient and safe payments system for everyone," RBA governor Michele Bullock said.

 

The changes would fall under the central bank's existing powers and not need the government to pass legislation.

 

However, the RBA noted the government could ban surcharges in the future if they managed to linger.

 

"The declining use of cash and the rise of electronic payments means that more Australians are getting slugged by surcharges, even when they use their own money," Treasurer Jim Chalmers said.

 

The treasurer described the review as "an important step" to reducing costs, while managing the impact for businesses and the economy. He said the government would consider the RBA's recommendations, along with "broader industry feedback".

 

Small business operators have previously expressed concern about a surcharge ban, worried they would end up footing the bill and need to raise prices more broadly to cover payment costs.