Card surcharges disappear on 1 October 2026. Tap for a $100 purchase, pay $100. Simple enough, until you ask the question accountant Pete Burrows keeps coming back to: the business still has to pay to process that card, so who ends up wearing the cost? Ben McEachen and Pete sort out what's actually changing on eftpos, Mastercard and Visa, what isn't, and what to watch for at the till.

Key Takeaways:

• From October 1st, Australia will implement a ban on surcharges for payments made with Eftpos, MasterCard, and Visa cards.
• The policy aims to enhance price transparency, allowing consumers to see the full cost of their purchases at the point of sale without additional surcharges.
• Businesses must decide how to handle transaction costs moving forward, possibly through pricing adjustments.
• Surcharges for services like Amex, UnionPay, and PayPal will also be removed, expanding the global shift toward reduced transaction costs.
• The episode highlights the need for consumers and businesses to stay informed about these regulatory changes and their broader financial impact.

Notable Quotes:

• "Technically, that fee is meant to go towards helping the business, but the reality is that business still has costs." - Pete Burrows
• "They’re trying to say, look, it's transparency. When you go and pay for something, that’s the full price." - Ben McEachen
• "Depending on the size of the business too, they may have different costs." - Pete Burrows
• "Most people are using plastic. Really, the question is why should that cost me more every time?" - Pete Burrows
• "Amex has traditionally been one of the higher cost cards…that’s a big win." - Ben McEachen

Resources

The RBA's weblink on removal of credit card surcharges here: RBA

https://www.cardsurcharge.com.au/