If you run a cafe, retail shop, trade business, or any other small business in Australia, you’ve probably felt the pain of card surcharges, confusing fee structures, and the sense that big merchants always seem to get better rates than you. Good news: the RBA has just finalised reforms that change exactly that.
From 1 October 2026, surcharges on eftpos, Mastercard, and Visa (debit, prepaid, and credit) will be banned outright. But more importantly for small businesses, the interchange fees — the wholesale cost you pay behind the scenes — are being significantly lowered. The RBA estimates this will deliver around $910 million a year in savings to Australian businesses overall, with small merchants standing to benefit the most.
Here’s why this is a genuine win for small businesses like yours, and exactly what you need to do to make the most of it.
1. No more surprise surcharges at the till
Customers hate them. You hate explaining them. And the old rules were messy to enforce anyway.
From October 2026 you simply display one all-inclusive price. Cleaner checkout experience = happier customers and less admin for you.
2. Lower interchange fees hit your bottom line directly
Small businesses have historically paid close to the old regulatory caps (because you don’t have the volume to negotiate big discounts). The new caps are:
- Consumer credit cards (including rewards cards): down to 0.3% (from 0.8%)
- Debit and prepaid cards: down to 0.16% or 8 cents (from 0.2%)
The RBA says small merchants will see the biggest relative saving because you were already paying near the maximum. Around 90% of businesses are expected to be better off overall.
3. Reduced gap between small and big merchants
Large retailers have long enjoyed strategic rates far below the caps. Lowering the caps across the board shrinks that unfair disparity. No more cross-subsidisation where small operators effectively helped subsidise the big players’ lower fees.
4. More transparency = real power to shop around
Card networks and acquirers must now publish clearer fee data. You’ll be able to compare merchant service fees more easily and push your provider for a better deal. The RBA is deliberately shining a light on this space so competition finally works in your favour.
Pro tip 1: Enable least-cost routing on your terminal right now (most modern systems already support it). This automatically sends debit transactions down the cheapest path — usually eftpos — without you lifting a finger.
Pro tip 2: Once the new fee data starts being published later in 2026, get quotes from at least two other providers. Even a small drop in your blended rate can add thousands back to your bottom line each year.
Why this matters for your business
You no longer have to absorb or awkwardly pass on unpredictable surcharges while big competitors quietly negotiate better rates behind the scenes.
Instead, you’ll benefit from lower underlying interchange costs, simpler all-in pricing, and better tools to control your payment expenses — while giving your customers the clean, no-surprise checkout experience they actually want.
Even better, the heavily subsidised rewards programs on premium credit cards are finally coming under pressure. These programs have long forced thrifty debit and eftpos users to indirectly fund points, lounge access, and perks for higher spenders. The RBA’s cuts are designed to reduce exactly this unfair cross-subsidy — and many banks are already warning that generous rewards will become less lavish. (Exactly what many small business owners have been hoping for.)
Doing this consistently — reviewing your merchant fees, enabling least-cost routing to eftpos, and making smart pricing adjustments — are the fastest ways to stop hidden payment costs from eating your margins and start running with more confident numbers and happier customers.