The card surcharge ban started on 1 October, and many small businesses are now hunting for another way to recover payment costs. Before you rename your old surcharge, read what the ACCC has said about it, because the quick fix could create a bigger problem.

What the ACCC says

From 1 October 2026, businesses can no longer add a surcharge for payments made with Visa, Mastercard, American Express and eftpos cards. The ACCC has also warned that businesses should not try to get around the no surcharge rules by describing a card payment surcharge as another type of fee or charge. Doing that may be misleading conduct.

In plain terms, a "service fee", "payment processing fee" or "admin fee" that only appears when someone taps a card is still a surcharge in disguise.

Who enforces it

The ACCC points out that it does not enforce the card network rules itself. The card networks and payment providers do. That means your payment provider can act if you keep surcharging, so check your terminal and online checkout settings, not just your price list.

What businesses are doing instead

Reporting from the ABC shows many owners are lifting prices across the board, rounding prices up, or looking at cash discounts. One restaurant owner called cash discounts impractical, so they will not suit everyone.

If you go down the discount route, the ACCC says businesses can offer discounts to customers who pay with a particular method, such as cash or PayID, as long as the discount is clearly disclosed before the customer chooses to book, order or pay.

What to do this week

  • Turn off old surcharges. Check your point of sale, invoicing software, online store and payment links for any card fee that is still switched on.
  • Look for disguised fees. Remove any line item that is charged only to card payers, whatever it is called.
  • Show the total price. The ACCC says price displays and other customer communications must reflect the total price payable. Update menus, quotes and websites.
  • Work out your real cost. Look at last quarter's merchant fees as a percentage of sales. That tells you whether a price change is needed and how big it should be.
  • Review any price changes with your accountant. A change to prices affects GST, margins and your BAS, so make sure your invoices and software are set up correctly.
  • Shop around. Compare payment providers on fees and settlement times, since your costs are now yours to carry.

The bottom line

The surcharge is gone, so the cost needs a new home in your pricing. Make that change openly and across the board, rather than hiding a card fee under a new name.

This article is general information only and does not take your circumstances into account. Speak to your accountant before making decisions.