The Reserve Bank of Australia (RBA) announced on July 16, 2025, plans to eliminate surcharges on eftpos, Mastercard, and Visa card payments. This move, detailed in a new consultation paper, is part of the RBA’s review of merchant card payment costs and surcharging practices.
Currently, Australian consumers pay approximately $1.2 billion in card surcharges annually. The RBA believes that these surcharges are no longer effective in encouraging consumers to choose more efficient payment methods. Removing them aims to make card payments simpler, more transparent, and boost competition.
In addition to removing surcharges, the RBA also proposed lowering the cap on interchange fees that businesses pay. This change could save businesses an estimated $1.2 billion in interchange fees each year. The central bank estimates that roughly 90% of Australian businesses will benefit from these proposed changes, with small businesses and those accepting international cards seeing the most significant savings due to new caps on foreign interchange fees.
The RBA is accepting feedback on these proposals and draft standards until August 26, 2025. The central bank expects to publish its final conclusions and an implementation timeline for any new regulations by the end of 2025.
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