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
16%
2x
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 follows the Reserve Bank of Australia's Review of Merchant Card Payment Costs and Surcharging. The RBA found that card surcharging has roughly doubled since 2022 and is hard for most people to avoid, and that consumers are paying an estimated $1.6 billion of the $1.8 billion charged in card surcharges each year, so it decided the existing rules were no longer working.
To offset the impact on businesses, the RBA is also lowering the interchange fee caps banks can charge on domestic card transactions from the same date, with a further cap on foreign-issued cards from 1 April 2027. The RBA expects this to cut merchants' wholesale card acceptance costs by around $910 million a year in total.
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 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. American Express is not covered by the ban either, but it has said it will stop allowing surcharges on its cards from 1 October 2026, so treat Amex the same as Visa and Mastercard.
Important for businesses that accept Amex
American Express says it supports the change and will update its merchant terms by 1 October 2026, so an Amex surcharge should come off on the same day as your Visa and Mastercard surcharges.
A business-to-business card sale is not exempt
If your halal business sells to other businesses and takes card payment, the Reserve Bank of Australia says that sale is covered by the same no-surcharge rule as a sale to a consumer, unless the specific card network provides an exemption. That decision sits with the card network, not the RBA, so check with your payment provider rather than assuming a B2B invoice is exempt.
Halal shopping in the Souq
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.
Stop surcharging Amex too
American Express will also stop allowing surcharges from 1 October 2026, so remove the Amex surcharge on the same day. Diners Club and Buy Now Pay Later are not covered.
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.
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Frequently Asked Questions
When does the card surcharge ban start in Australia?
The ban on card surcharges takes effect on 1 October 2026 for eftpos, Mastercard, and Visa transactions (debit, prepaid, and credit).
Does the surcharge ban apply to American Express?
Not by the ban itself, because American Express runs its own card network. But American Express has said it will stop allowing surcharges on its cards from 1 October 2026 as well, so plan to stop surcharging Amex on the same date.
Can I increase my menu prices to cover lost surcharge revenue?
Yes. Businesses are free to adjust their shelf or menu prices to cover costs. Many businesses already absorb card processing fees without surcharging.
Will my card processing costs go down?
Yes, for most businesses. The RBA is lowering interchange fee caps on domestic cards from 1 October 2026, which it expects will cut merchants' wholesale card costs by around $910 million a year in total.
Do business-to-business card payments get an exemption from the surcharge ban?
No, not automatically. The Reserve Bank of Australia says card payments between businesses are not exempt from the removal of surcharging unless the card network's own rules provide an exemption, and that decision sits with the card network, not the RBA.
Does the surcharge ban cover debit cards or only credit cards?
Both. eftpos, Visa, and Mastercard debit, prepaid, and credit cards are all covered by the ban from 1 October 2026, not just credit cards.
Do I need to reconfigure my EFTPOS terminal or POS system myself?
Usually not. The RBA says most payment service providers will remove surcharging functionality from terminals and POS systems around 1 October 2026, but confirm directly with your provider that this has been done rather than assuming it.
What happens if a business still surcharges after 1 October 2026?
The card networks and payment service providers enforce the no-surcharge rules through merchant agreements, not the ACCC. The ACCC's role continues to be enforcing the existing Australian Consumer Law, including against a business that tries to get around the ban by relabelling a card surcharge as a different kind of fee.
I sell on Souq by HalalHQ. Do I need to do anything for the surcharge ban?
No. Souq handles payment processing for you and does not pass card surcharges to buyers. Check any other sales channels you use, since the ban only removes what those checkouts add themselves.
Sell with no surcharge hassle
Souq by HalalHQ handles payments for you. No surcharges, no setup headaches. List your products and reach halal-conscious buyers across Australia.
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