In a strong move to recalibrate Australia’s payments landscape, the Reserve Bank of Australia (RBA) has unveiled a Consultation Paper proposing the elimination of surcharges on EFTPOS, Mastercard, and Visa transactions — fees that currently cost consumers $1.2 billion annually.
The central bank argues that surcharging has lost its original purpose of guiding consumers toward cost-efficient payment methods, especially as cash usage plummets and merchants apply blanket fees across card types.
The proposed ban, slated for July 2026, would simplify transactions, enhance transparency, and inject competitive pressure into the card payments ecosystem.
For businesses, particularly small enterprises, the RBA’s plan to lower interchange fee caps could unlock an additional $1.2 billion in annual savings.
With 90% of Australian merchants expected to benefit, the reforms aim to level the playing field by capping foreign card fees and reducing the cost burden on those least able to negotiate favourable terms.
The move aligns with broader efforts to position Australia as a globally competitive payments hub, echoing investors' calls for a lean transaction infrastructure and reduced friction in cross-border commerce.
To further catalyse market efficiency, the RBA will mandate that card networks and large acquirers publicly disclose their fee structures. This is a transparency measure designed to empower merchants to shop for better deals and stimulate price discipline across the sector.
Stakeholders have until 26 August 2025 to submit feedback, with final policy decisions and implementation timelines expected by year-end.
For global luxury investors eyeing Australia’s fintech and retail sectors, these reforms signal a decisive shift toward a more investor-friendly, cost-efficient payment regime.
