Review Of Merchant Card Payment Costs And Surcharging 15 July

The Reserve Bank of Australia (RBA) has today released a Consultation Paper as part of its Review of Merchant Card Payment Costs and Surcharging. This follows an extensive public consultation process since the release of an Issues Paper in October 2024. The Payments System Board has reached the preliminary view that it would be in the public interest to:

• remove surcharging on eftpos, Mastercard and Visa cards. Consumers currently pay around $1.2 billion in card surcharges each year. Surcharging is no longer achieving its intended purpose of steering consumers to make more efficient payment choices: avoiding surcharges has become harder as cash usage has declined, businesses are increasingly charging the same surcharge rate across debit and credit and there are significant challenges with enforcing the current surcharging rules. Removing surcharging would make card payments simpler, more transparent and help to increase competition in the card payments system.
• lower the cap on interchange fees paid by businesses. This could save businesses around $1.2 billion in interchange fees a year. Around 90 per cent of Australian businesses are estimated to be better off under the proposed policies. The proposed reductions to interchange caps would benefit small businesses the most, as they tend to pay fees closer to the existing caps. Introducing caps on foreign interchange fees would help to lower fees for all businesses accepting international cards.
• require card networks and large acquirers to publish the fees they charge. Improving transparency and competition will help all players better understand the fees they are charged and make it easier for businesses to shop around for a better deal.

The RBA invites feedback on the proposed policy options and draft standards by 26 August 2025. The RBA will draw on this feedback to finalise reforms that are in the public interest in line with its objectives of a safe, competitive and efficient payments system. The RBA intends to publish these conclusions and an implementation timeline for any regulatory steps by the end of the year.