Card surcharge ban a reason to Keep Cash

From 1 October 2026, Australians will no longer see separate surcharges added to most credit and debit card transactions.

While many consumers will welcome the change, the Reserve Bank of Australia (RBA) and consumer advocates are also highlighting another message: people should be encouraged to consider alternative payment methods, including cash.

The change follows an RBA review of merchant card payment costs and surcharging. From October, major payment networks including eftpos, Visa and Mastercard will prohibit card surcharges, while other providers such as American Express and PayPal have also committed to removing surcharges.

For many Australians, particularly seniors managing tight household budgets, the disappearance of card surcharges may sound like good news. But businesses will still face costs when customers pay by card. The RBA notes that merchants may incorporate those costs into their overall pricing instead of displaying them as a separate surcharge.

Importantly, the RBA says businesses that want to encourage lower-cost payment methods can offer discounts rather than impose surcharges. In other words, instead of charging extra for card payments, retailers could reward customers who choose alternatives such as cash. The Australian Competition and Consumer Commission (ACCC) also advises that businesses can continue offering discounts linked to particular payment methods.

This approach aligns closely with National Seniors Australia's long-running Keep Cash campaign.

National Seniors has consistently argued that cash remains an essential payment option, particularly for older Australians who may be digitally excluded or prefer a payment method they can easily track and control. The campaign advocates not only for the acceptance of cash, but also for maintaining access to bank branches, ATMs and face-to-face banking services.