Card Surcharge Ban Australia 2026: What Your Halal Business Needs to Know
Australia is banning card surcharges from 1 October 2026. Here is what it means for halal restaurants, cafes, and online sellers, and what to do before the deadline.
Takes effect 1 October 2026
$1.6B
$910M
$185M
16%
What Is the Card Surcharge Ban in Australia?
From 1 October 2026, Australian businesses will no longer be allowed to add surcharges when customers pay with eftpos, Visa, or Mastercard cards. This applies to debit, credit, and prepaid cards from these networks. The ban is part of the federal government's response to the Reserve Bank of Australia's Review of Retail Payments Regulation. Consumers currently pay an estimated $1.6 billion in card surcharges each year, and the government is acting to eliminate this cost.
To offset the impact on businesses, the RBA is also reducing interchange fee caps, which lowers the wholesale cost that banks charge merchants for processing card payments. Small businesses (90% of which benefit from these changes) are expected to save $910 million annually in wholesale card acceptance costs and are $185 million better off overall, according to the RBA.
Cards covered by the ban (no surcharging allowed)
Which Cards Can Still Be Surcharged After the Ban?
Not every payment method is covered by the surcharge ban. Businesses can still apply surcharges to American Express, Diners Club, and Buy Now Pay Later services such as Afterpay. Foreign-issued card surcharges also remain allowed until April 2027, when reduced interchange fee caps extend to foreign cards. If your business accepts American Express, you will need to ensure your POS system can distinguish between card networks so you only surcharge where it is permitted.
Important for businesses that accept Amex
If you accept American Express, you can still apply a surcharge to Amex transactions specifically. Make sure your POS system can distinguish between card networks so you only surcharge where it is allowed.
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How Does the Surcharge Ban Affect Halal Businesses?
The impact depends on whether you currently surcharge and how you accept payments. About 16% of Australian businesses currently add card surcharges, according to the RBA. If your halal restaurant, grocery store, or online shop is one of them, you will need to update your payment setup before the October deadline.
Halal Restaurants and Cafes
If you currently add a 1-2% surcharge on card payments, you will need to stop by October 2026. The good news: lower interchange fees mean your processing costs will drop too. If you need to recoup the difference, a small menu price adjustment is the simplest approach.
Souq Sellers and Online Stores
Souq by HalalHQ does not pass card surcharges to buyers, so Souq sellers are already compliant. If you also sell through your own website or other channels, check that those checkouts do not add surcharges on Visa, Mastercard, or eftpos.
Halal Grocers and Butchers
If your EFTPOS terminal is configured to surcharge, contact your payment provider to have it disabled before October. With reduced interchange fees, your card acceptance costs should come down, softening the impact.
A note on timing
Some small business groups have raised concerns that the surcharge ban starts on 1 October 2026, but some of the interchange fee reductions may take time to flow through from banks. If your costs have not dropped by October, talk to your payment provider about when to expect lower rates.
What Should Businesses Do Before the Surcharge Ban?
A practical checklist for halal business owners.
Audit your current surcharge setup
Check if your EFTPOS terminal or POS system is adding surcharges. Note what percentage you charge and how much revenue it generates monthly.
Talk to your payment provider
Ask about the new lower interchange rates. Request a fee review. You may be able to negotiate better rates before October.
Review your pricing
If you currently surcharge, consider building the cost into your menu or shelf prices instead. Many halal restaurants already price this way.
Update your POS and signage
Remove surcharge notices from your shopfront, menus, and EFTPOS terminal settings by 1 October 2026.
Check your online store
If you sell on Souq or your own website, ensure your checkout does not add card surcharges to eftpos, Visa, or Mastercard.
Keep American Express separate
You can still surcharge Amex. If you accept Amex, make sure your system only applies surcharges to Amex, not to Visa or Mastercard.
When Does the Card Surcharge Ban Take Effect?
Key dates to mark in your calendar.
Surcharge ban begins
No more surcharges on eftpos, Mastercard, and Visa (debit, prepaid, and credit cards).
Foreign card interchange cap
Reduced interchange fee caps extend to foreign-issued cards. Cross-border transaction costs drop further.
Frequently Asked Questions
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