Surcharge ban removes visible fees on cards — but costs may shift to cardholders

# What's changing and why it matters From 1 October 2026 merchants in Australia cannot add a surcharge when customers pay with debit or credit cards. The Reserve Bank of Australia estimates this will remove around $1.6 billion a year in visible charges. In the 12 months to June 2026 Australians used $475 billion in credit-card purchases and $696 billion in debit transactions, so small fees add up quickly.

# Who notices the change

# How banks and card issuers might react Card providers rely on interchange income and other fee streams to support card programs, particularly rewards and frequent-flyer benefits. With surcharges gone, issuers may respond by:

• Increasing annual fees on some cards.
• Reducing points earn rates and shrinking sign-up bonuses.
• Cutting or limiting benefits such as travel credits and insurances.

Finder's research cited in the story found some cards have already trimmed bonuses, introduced new fees, or increased existing charges. Finder's Taylor Blackburn is quoted saying that surcharge removal is "now most likely going to be frequent flyer and rewards credit card holders" covering the lost costs.

# What rewards-card users should do now Review your cards before October. Compare the annual fee against the benefits you actually use — points, travel credits, insurance and other perks. A card that looked valuable at one price can become unattractive if fees rise or earn rates fall. Finder found 30% of Australians would cancel a card if the provider raised the annual fee in response to the ban, so issuers may move gradually to avoid churn. Still, the value equation for rewards cards is changing.

# Practical rules to follow

• Don't spend more just to earn points. Rewards should be a byproduct of normal spending, not the reason to overspend.
• If you carry a balance, prioritise reducing interest costs. Paying credit card interest to chase rewards usually costs more than the rewards are worth.
• Compare cards on net value: annual fee minus realistic benefit value, not theoretical maximums.

# The likely outcome for consumers Removing surcharges will deliver an immediate visible saving at checkout. But some of the saved amount may reappear indirectly through adjustments to card products. Competitive cards that still offer value will remain, especially for disciplined customers who pay balances in full and use benefits. The sensible response is to audit the cards in your wallet, confirm the net value of any fees you pay, and be prepared to switch if your card's economics worsen.

# Short action checklist

• Check your card's annual fee and recent changes to earn rates or bonuses.

• Avoid carrying a balance to preserve the value of any rewards card.
• If you don't use rewards, consider lower-fee or no-fee cards after October 1.