The card surcharge ban is coming. Here's what it means for your margins.
From 1 October 2026, surcharges on eftpos, Visa and Mastercard payments are being phased out across Australia. If you've been passing card fees on to customers, that option disappears — and the cost has to land somewhere.
For years, surcharging has been the easy answer to rising card processing costs: pass a small percentage back to the customer at checkout and move on. From 1 October 2026, that option goes away for eftpos, Visa and Mastercard transactions, as part of the Reserve Bank of Australia's reforms to simplify the payments system.
The good news is that removing surcharges doesn't have to mean absorbing the cost and hoping for the best. It's a good moment to look at what you're actually paying to take payments, and whether your point-of-sale setup is doing you any favours.
- Lower processing rates, so there's less cost to cover in the first place
- Clear, all-in pricing, with no surprise merchant fees
- Smart checkout tools that help protect your margins without leaning on customers
What's changing
From 1 October 2026, businesses will no longer be able to add a surcharge when a customer pays with eftpos, Visa or Mastercard, whether it's debit, credit or prepaid. The rule is enforced through card network merchant agreements rather than by a regulator, so it applies whether you're a café, a retailer or an online store.
Why it matters
If surcharging has been quietly covering your processing costs, that revenue line disappears overnight. Interchange caps are being lowered to help offset this, but for many small businesses the maths still won't balance itself. The businesses that come out ahead will be the ones that reviewed their pricing and payment setup before the deadline, not after.
How MOD Commerce helps
MOD Commerce POS is built to help you run leaner from the start: lower processing rates, transparent all-in pricing with no hidden merchant fees, and checkout tools designed to protect your margin without pushing the cost onto customers.
About MOD Commerce
MOD Commerce is a modern commerce platform built for merchants who want their technology to work as hard as they do. Whether you need a single bespoke tool or a full 360° omni-channel solution, the platform is built to flex around how your business actually runs, not the other way around.
Point of Sale
A fast, reliable POS built for retail floors and busy checkouts, with stock, pricing and variations all managed in one place.
Payments
Transparent, all-in processing rates with no hidden merchant fees, designed to keep more of every sale in your business.
Product & Inventory Management
Bulk product uploads, SKU-level detail and stock control tools that keep your catalogue accurate across every channel.
Omni-Channel Commerce
In-store and online kept in sync, so stock, pricing and orders line up wherever your customers choose to shop.
Let's talk before 1 October
If surcharge removal has you rethinking your pricing, we can help you find a cheaper, simpler setup.
Get a cheaper setup