The End of Card Surcharges: Why October 2026 Is More Than Just a Pricing Change

From 1 October 2026, Australian businesses will no longer be able to separately charge customers a surcharge for paying by card. While many businesses have viewed surcharges as a simple way to recover merchant fees, the upcoming changes mean those costs will now need to be absorbed elsewhere in the business.

For some businesses, this will have little impact. For others, particularly those with high transaction volumes, low margins, or a strong reliance on card payments, the removal of surcharges could create a noticeable hit to profitability and cash flow.

The change presents an opportunity to take a closer look at pricing, margins, forecasting and business performance.

What’s Changing?

From 1 October 2026, businesses will no longer be able to pass on merchant fees to customers through card surcharges on eftpos, Visa and Mastercard transactions.

Card payments have become the dominant payment method, making it increasingly difficult for consumers to avoid surcharge costs. The RBA considers transparent upfront pricing to be a better outcome for consumers.

Importantly, the cost of accepting card payments is not disappearing. Businesses will still incur merchant fees, gateway charges, terminal costs and other payment processing expenses. The difference is that these costs can no longer be passed directly to customers through a separate line item at the checkout.

The Hidden Impact on Small Businesses

Many business owners are focusing on the compliance side of the change. Remove the surcharge. Update the point-of-sale system. Change some signage.

The bigger issue is what happens underneath.

A business that processes $2 million of annual card sales and currently recovers a 1.5% surcharge may be collecting around $30,000 per year towards merchant fees. Once surcharging disappears, that $30,000 effectively becomes a cost of doing business.

For businesses operating on tight margins, that’s not insignificant.

It’s Not Just About Merchant Fees

For many businesses, card surcharges have effectively hidden a cost that has been quietly increasing over time.

The challenge is that most businesses don’t actually know what the removal of surcharge income will mean for their bottom line. This is where forecasting becomes critical.

Forecasting can help answer questions such as:

• How much profit will be lost when surcharge income disappears?
• Does pricing need to change to maintain margins?
• What impact would a 1% or 2% price increase have on revenue?
• Can merchant fees be renegotiated or reduced?
• How will cash flow be affected?
• Are there operational efficiencies that could offset the additional cost?

Final Thoughts: Turn a Regulatory Change Into a Business Opportunity

If you’re unsure what the surcharge ban means for your business, now is the time to review your numbers. A small adjustment today could prevent a much larger profitability issue tomorrow.

At Macro, we help business owners move beyond historical reporting and focus on forward-looking decision making through:

• Cash flow forecasting and budgeting
• Scenario modelling
• Pricing and profitability reviews
• Business performance reporting
• Strategic business advisory

With less than a week until the surcharge changes commence on 1 October 2026, it’s important for businesses to understand how the surcharge changes may impact cash flow and profitability and ensure they are prepared for the transition.

Date: 25/09/2026
The Macro Group Limited AFSL: 485843 Tax Agent Number 24 76 5236.

The information in this article contains general information only. We have not taken into consideration any of your personal objectives, financial situation or needs. Before taking any action, you should consider whether the general advice contained in this communication is appropriate to you having regard to your circumstances and needs and seek appropriate professional advice if you think you need it. We recommend that you consult a licensed or authorised financial adviser if you require financial advice that takes into account your personal circumstances.