The card surcharge ban: a practical guide for pubs and clubs

The Reserve Bank of Australia (RBA) concluded that it is in the public interest to remove card surcharging on the designated card networks — eftpos, Mastercard and Visa — from 1 October 2026. To do this, the RBA removed its prohibition on 'no-surcharge' rules, which allowed those card networks to ban surcharging on credit, debit and prepaid cards issued on their networks.

eftpos, Mastercard and Visa each introduced no-surcharge rules from 1 October 2026. The RBA reports that American Express, UnionPay and PayPal have also decided to remove surcharging, even though they are not formally regulated by the RBA. In practice, a pub or club that added 1% to 1.5% at the bar for card payments before October now needs to stop, unless a specific exception applies.

The RBA notes that it does not regulate merchants directly. Pubs and clubs deal with their acquirer or payment service provider, and the card networks set and enforce the no-surcharge rules. Many large providers planned to switch off surcharging functionality on terminals around 1 October 2026.

No general exemption exists for clubs or not-for-profit organisations. The RBA states that businesses, including not-for-profit organisations, are not exempt from the removal of surcharging unless a card network's rules provide an exemption or an exemption is provided by law or regulation. Whether any exemption is available is a decision for each card network, not the RBA.

A club, RSL or community venue that believes it qualifies for an exception should ask its payment service provider in writing before applying any surcharge. Card networks, not the RBA, are responsible for enforcing compliance, and customers can report a venue that keeps surcharging to the card network shown on their receipt.

A cash discount is a lower price offered to customers who pay with cash instead of a card. Unlike a card surcharge, the displayed price is the card price and cash payers receive a reduction. For example, a venue could display menu prices and state clearly that cash payments receive a set percentage off — the percentage is the venue's commercial decision.

The ACCC's price display guidance applies to payment method discounts, so a venue should make the discount, its conditions and the full price clear before purchase. Staff should be able to apply the discount consistently at the bar, bistro and bottle shop, and the point-of-sale system should record cash and card sales separately so the venue can measure the result.

A cash discount only works if patrons can easily get cash. That is where an on-site ATM matters: a customer who wants the cash price needs a way to withdraw money without leaving the venue.

The RBA states that businesses are generally able to choose which payment methods they accept, including withdrawing existing ones, although some businesses must accept cash under ACCC cash acceptance industry codes. Before changing, the RBA advises considering customers' payment needs and checking requirements with the payment service provider.

For most pubs and clubs, removing card acceptance entirely risks losing tourists, younger customers and function bookings. A more balanced approach is to keep cards available at the standard price, reward cash with a discount, and make cash easy to access with an ATM on site.

The RBA names the payment service provider as the best point of contact for removing surcharging from terminals. It also points businesses to resources from the ACCC, Australian Payments Network (on behalf of the card networks, at cardsurcharge.com.au) and the Australian Small Business and Family Enterprise Ombudsman (ASBFEO).

This guide is general information only and is not financial, legal or taxation advice. Rules can change, and card networks may update exemptions. Confirm details with the original sources and your own adviser before changing your pricing.