RBA Targets 2026 for Card Surcharge Ban

The Reserve Bank of Australia (RBA) has proposed banning all surcharges on credit and debit card payments, a move expected to save consumers about A$1.2 billion (US$785 million) annually. The proposal, which goes beyond previous government plans, aims to simplify the payments system and address outdated fee structures as cash usage declines. The RBA also recommends lowering interchange fees for businesses and increasing fee transparency among card networks and payment providers. Despite some concerns from small businesses about absorbing costs, most merchants are expected to benefit financially from the changes. The reforms are set to take effect after industry consultation, with implementation targeted for mid-2026. The RBA estimates the overall impact on consumer prices will be minimal, at about 0.1 percentage point.