Surcharging Is Banned in Australia: Could the US Be Next? (And What to Do Right Now)

Australia has just changed the rules for card surcharges. Since October 1, 2026, businesses there can no longer add surcharges for payments on designated eftpos, Mastercard, and Visa networks.

That’s a major shift, but it does not mean the United States has adopted the same ban, or that a U.S. ban is certain. For American small-business owners, Australia’s move is best viewed as a reason to review your pricing and payment setup, not a reason to rush into a change.

What changed in Australia?

The Reserve Bank of Australia (RBA) introduced its surcharge prohibition as part of a broader package of payment reforms. The change covers credit, debit, and prepaid cards on the designated networks. American Express, UnionPay, and PayPal have also chosen to remove surcharging, according to the RBA’s reform overview.

Australian merchants can still account for payment costs in their overall prices. But a separate fee specifically for paying by card is no longer the route. Businesses must also communicate prices transparently: Australia’s business.gov.au guidance explains the new rules and what merchants need to know.

The distinction matters. A ban on adding a card surcharge is not the same as a ban on businesses reflecting operating costs in the prices they set.

Does that mean the U.S. is next?

No U.S. nationwide ban has followed from Australia’s decision. U.S. merchants still need to follow the laws that apply where they operate, payment-network rules, and their processor or acquirer agreement. Those requirements can differ by state and by payment type.

For example, Florida’s 2026 statute prohibits a seller from imposing a credit-card surcharge, subject to the law’s terms. That is one state example, not a nationwide rule. A business with multiple locations should not assume one policy works everywhere.

Could U.S. rules change in the future? Policy debates can evolve, but Australia’s decision alone does not establish what U.S. lawmakers or regulators will do. It’s more useful to prepare for the rules that apply to your business today and keep your pricing flexible enough to adjust if those rules change.

Surcharge, cash discount, or “non-cash adjustment”?

The label on a receipt or sign doesn’t settle whether a payment charge is compliant. The way you set and display the prices matters.

A surcharge is an additional charge imposed because a customer pays by card. In the U.S., where surcharging is permitted, card-network rules generally restrict it to credit cards, not debit or prepaid cards, and require clear disclosures. Visa’s U.S. merchant guidance and Mastercard’s surcharge rules describe network requirements, including limits and notice obligations. State law or your processor agreement may be stricter.

A cash discount works differently: the posted or standard price is the card price, and customers receive a clearly presented discount for paying with cash. A two-price or dual-pricing setup can show those options upfront. But calling an added card charge a “non-cash adjustment” does not automatically turn a surcharge into a discount.

CardPlus explains the distinction in its overview of dual pricing and surcharging. The key is to have the pricing structure, signs, checkout display, and receipt all tell the same story.

Four practical steps to take now

You don’t need to overhaul your payment setup because Australia changed its rules. You do want to know exactly how your current program works.

1. Map your locations and sales channels

List every state where you have a physical location, then review online, phone, and in-person sales separately. Laws and disclosure requirements can vary. If your business sells across state lines, ask how the relevant rules apply to each transaction before using one setting nationwide.

2. Check how your fees actually work

Look at your signage, menus, website, quotes, checkout screens, and receipts. Is your standard price clear? Does a separate amount appear only when a customer pays by card? Do your signs explain the price before customers reach the payment terminal?

If you surcharge, verify that your program follows applicable state law and your network and processor requirements. Confirm that debit and prepaid transactions are excluded where required. Ask your processor what advance notice, caps, and transaction disclosures apply. Visa and Mastercard rules include advance-notification requirements; confirm the current process and timing with your acquirer before making changes.

3. Compare pricing options before you switch

A cash discount or dual-pricing approach may suit some businesses, but it is not a universal shortcut around surcharge rules. Review how each option affects the price customers see, your margins, and the way your checkout system calculates and displays totals. Get your processor’s approval and, when needed, legal advice before changing your program.

4. Make your setup easy to update

Keep a record of your current pricing model, disclosures, processor approvals, and card-terminal settings. If a state law or network rule changes, that record makes it easier to identify what needs updating, and what can stay as it is.

The takeaway for U.S. small businesses

Australia’s surcharge ban is a real change for Australian merchants, effective October 1, 2026. It is not a U.S. ban, and it is not proof one is inevitable.

Your best next move is a calm, practical review: understand your local rules, make sure your pricing is transparent, and confirm that your processor and payment setup match the approach you choose. That helps you protect customer trust without making a costly change based on a headline from another country.

For a review of your payment setup or pricing options, contact CardPlus. Our team can help you understand your processing and POS choices and identify questions to take to your processor or legal advisor.

Sources: Reserve Bank of Australia, reform announcement and frequently asked questions; Australian Government, card payment surcharge changes; Visa, U.S. Merchant Surcharge Q&A; Mastercard, merchant surcharge rules; Florida Senate, 2026 Statutes, Section 501.0117. This article is general information, not legal advice.