Card Surcharge Changes: What businesses need to know

From 1 October 2026, businesses can no longer add a separate surcharge for card payments, including eftpos, Visa, Mastercard and American Express. Merchant fees have not disappeared, so businesses must decide how those costs will be managed.

For businesses already operating on tight margins, absorbing the fees may not be sustainable. Options include reviewing overall pricing, comparing payment providers and encouraging lower-cost payment methods. Businesses may also continue to offer genuine discounts for cash or other preferred payment methods.

The changes may lead some businesses to increase their prices rather than absorb the additional cost. Before making changes, consider the effect on profit margins, customer expectations and competitiveness.

ATO to stop accepting credit card payments

The ATO will also stop accepting credit card payments.  Initially, this was to apply from 30 November 2026 however, after government discussions and additional funding to the ATO, the ATO will continue to accept credit card payments for tax obligations until 30 June 2027.

Businesses that currently use credit cards to manage cash flow should review their payment arrangements early and consider alternative funding or an ATO payment plan where appropriate.  Alternatively, those taxpayers that pay tax debts on credit cards to accumulate additional points under credit card loyalty programs will soon see that door closed on them.

This is a prime time to review your business cash flow.  If you would like some help and guidance on this, please contact our office.