The Reserve Bank today released its Conclusions Paper on the Review of Merchant Card Payment Costs and Surcharging, the most significant overhaul of Australia’s card payments system in over two decades. There are three changes that matter for independent operators.
First, surcharging on debit, prepaid and credit cards on eftpos, Mastercard and Visa networks ends on 1 October 2026. The RBA has concluded that surcharging is no longer achieving its original purpose of steering customers towards cheaper payment methods. From October, merchants will not be permitted to add a surcharge to card transactions on these networks. Only a small percentage of servos currently surcharge, but those that do need to start planning now. Come October, that revenue line disappears and the cost of accepting cards becomes something you absorb entirely within your margin.
Second, the RBA is reducing the caps on interchange fees, which are the fees your business pays every time a customer taps or inserts a card. The reduction is weighted towards small businesses, which the RBA acknowledges have been paying disproportionately higher fees than large retailers. The RBA estimates the changes will reduce merchant payment costs across Australia by around $910 million per year. For a servo processing hundreds of card transactions a day, even a small per transaction saving adds up over the course of a year.
Third, the RBA is introducing fee transparency requirements. Card networks and large acquirers will be required to publish their fees, and merchants will receive standardised statement information. This is designed to put downward pressure on the fees you are being charged. Foreign card interchange caps come into effect on 1 April 2027, and a further consultation on mobile wallets, buy now pay later services and three party networks is planned for mid 2026.
Whether you surcharge or not, this is a good time to review what you are paying on your merchant terminal. Most operators set up their terminal arrangement and never revisit it, even as transaction volumes change and the fee landscape shifts around them. ServoPro has access to terminal options with very competitive merchant fee structures. If you would like a no obligation review of your current setup, contact Dan Armes directly on 0490 415 063 or [email protected]. It takes 10 minutes and could save you thousands over the course of a year.