From 1 October 2026, businesses can no longer add a separate surcharge when customers pay by eftpos, Visa, or Mastercard.
The change applies to both credit and debit cards and is relevant to business-to-business transactions as well as consumer payments.
American Express has also announced that it will remove surcharging from the same date.
What does this mean for civil contractors?
If your business currently adds a credit or debit card surcharge, you will need to stop doing this from 1 October 2026.
It also means you should not be charged these fees by other businesses either!
You should not simply rename the charge as a “payment processing fee”, “merchant fee”, or similar, if it is still a charge that only applies because the customer has paid by card.
However, you do not have to absorb the underlying cost of accepting card payments.
The Reserve Bank of Australia (RBA) says businesses can reflect those costs in their overall pricing rather than charging them separately.
What should contractors do now?
1. Review your current payment arrangements
Check what you are paying your bank or payment provider to accept card payments and how much your business currently recovers through surcharges.
2. Review your pricing
If card payment costs are material, consider whether they should be factored into your normal pricing, including tender rates, service rates or other charges.
For contractors processing large invoices, this is particularly important. A 1–2% payment cost on a small transaction may be minor, but it can be significant on a larger invoices and can quickly add up.
3. Review your payment terms
Consider whether EFT, direct deposit or another payment method should be your preferred method for larger business-to-business payments.
4. Check your contracts, invoices and systems
Make sure any references to card surcharges are removed or updated before 1 October 2026, including standard terms and conditions, quotes, invoices, websites and payment portals.
5. Talk to your payment provider
Ask your bank or payment provider what the changes mean for your merchant arrangements and whether there are more competitive options available.
Can you still charge other fees?
Yes. The change is specifically about surcharges added because a customer pays by card.
It does not prevent businesses from charging genuine fees that are unrelated to the payment method, such as legitimate service, booking, or other business fees.
Payment providers will also continue to charge businesses their own fees for services such as payment terminals and processing.
Those are costs paid by the business to its provider, not card surcharges charged to the customer.
The bottom line
Don’t try to replace a card surcharge with another name.
Review your pricing and payment arrangements instead.
Contractors should use the lead-up to 1 October to understand what card payments are costing their business and make sure those costs are appropriately reflected in their commercial pricing.
CCF NSW encourages members to obtain their own legal or financial advice where they are unsure how the changes apply to their particular contracts or payment arrangements.
Further information: RBA – Frequently Asked Questions: Removal of payment surcharges from 1 October 2026