If your small business presently provides a surcharge to card funds, your window to arrange is closing quick. From 1 October 2026, the Reserve Financial institution of Australia’s ban on surcharging throughout EFTPOS, Mastercard, and Visa networks will take impact. You can be affected by the federal government ban, and lots of of your fee suppliers might be affected. Some fee suppliers intend to increase the surcharge ban to incorporate American Categorical, China UnionPay, and Uncover, which works past the official RBA mandate.
Key Takeaways
- The RBA’s surcharge ban on EFTPOS, Mastercard, and Visa networks takes impact on 1 October 2026, making surcharging on debit, pay as you go, and bank cards unlawful.
- EFTPOS suppliers management terminal settings and service provider agreements in order that enforcement might be sensible and instant.
- Each service provider ought to ask their supplier two direct questions now: which playing cards are lined, whether or not any surcharging stays, and what the timeline for system adjustments is.
What Is the RBA Surcharge Ban?
The surcharge ban is a regulatory change, efficient 1 October 2026, that prohibits Australian retailers from including a separate charge to buyer transactions made by EFTPOS, Mastercard, or Visa debit and bank cards, as mandated by the Reserve Financial institution of Australia. Traditionally, retailers added this surcharge to cowl the price of card acceptance in Australia. After 1 October, the price of card acceptance for Visa and Bank cards might be paid by you.
How Can EFTPOS Suppliers Implement the Surcharge Ban?
They management service provider phrases, terminal settings, and fee workflows. It is rather a lot of their curiosity to implement this ban. From my discussions with a few of them, I’ve been advised that they intend to do that. I might be shocked if any of them don’t.
Which Playing cards Does the Surcharge Ban Truly Cowl?
The official RBA surcharge ban applies to home EFTPOS, Mastercard, and Visa transactions. Nevertheless, whereas the RBA’s official surcharge ban covers these networks, some fee suppliers are extending this inner ban to American Categorical, China UnionPay, and Uncover playing cards, which means retailers utilizing their companies will lose the flexibility to surcharge on these playing cards by their platform, whatever the regulation.
What Ought to Retailers Do Earlier than 1 October 2026?
Ask your fee supplier these direct questions earlier than 1 October 2026:
- Which playing cards might be lined by the surcharge ban in your platform, together with these you do deal with, resembling American Categorical, China UnionPay, and Uncover?
- What adjustments might be made to my terminal or POS system, and when will you be notified?
I guess you’ll not get a direct reply, however I do advocate you ask by electronic mail so that you get a written response.
Written by:
Bernard Zimmermann is the founding director of POS Options, a number one point-of-sale system firm with 45 years of business expertise, now retired and searching for new alternatives. He consults with numerous organisations, from small companies to massive retailers and authorities establishments. Bernard is captivated with serving to corporations optimise their operations by progressive POS expertise and enabling seamless buyer experiences by efficient software program options.
