Card Surcharges Are Ending in October 2026: What Changes, and What Stays the Same at RewardPay
By RewardPay
3 min read
Card Surcharges Are Ending in October 2026: What Changes, and What Stays the Same at RewardPay
Card surcharges end on 1 October 2026 for Visa, Mastercard and eftpos. See what changes, and what stays the same, if you pay business bills by card with RewardPay.
From 1 October 2026, card surcharges are ending across Australia for eftpos, Mastercard and Visa, with American Express also removing surcharging from the same date.
RewardPay is not captured by these reforms because we do not operate a surcharge model. RewardPay is a customer-initiated payment service, rather than a merchant-initiated surcharge. This means that if you use RewardPay to pay your business bills by card, it’s business as usual.
Your RewardPay fees aren’t changing, you can continue paying business expenses by card, and you can continue earning eligible card and RewardPay partner rewards.
Here’s what you need to know.
What’s changing on 1 October 2026
The Reserve Bank of Australia’s Payments System Board has introduced reforms to Australia’s card payment system. From 1 October, eftpos, Mastercard and Visa will introduce rules preventing businesses from adding a surcharge when customers pay by card. American Express is also removing surcharging from the same date.
The reforms also change interchange fees, one component of the cost of accepting card payments, and increase transparency around payment costs.
What is interchange?
Interchange is a fee paid between banks when a card payment is made. It is typically paid by the merchant’s bank to the cardholder’s bank and is one of the costs built into processing a card transaction. For rewards cards, interchange is one of the factors that can help fund points and other card benefits.
At a glance
From 1 October 2026
What it means
Visa surcharges
No longer permitted
Mastercard surcharges
No longer permitted
eftpos surcharges
No longer permitted
American Express surcharges
American Express is also removing surcharges
Consumer credit card interchange cap
Falls from 0.8% to 0.3%
Commercial credit card interchange cap
Remains at 0.8%
RewardPay fees
No change
RewardPay partner points fees
No change
What do the card surcharge changes mean for business credit card rewards?
The changes to interchange fees are particularly relevant to businesses that use credit cards to earn rewards.
From October, the cap on domestic consumer credit card interchange falls from 0.8% to 0.3%, while the cap for domestic commercial credit cards remains at 0.8%.
Rewards programs are ultimately set by individual card issuers, so any changes to your card’s points or benefits will depend on your issuer and the terms of your card.
For businesses using commercial cards, the interchange cap is not being reduced in the same way as consumer cards. However, it’s still worth keeping an eye on any updates from your card issuer.
What does the surcharge ban mean for RewardPay?
The short answer: nothing changes.
The important distinction is between a card surcharge and a payment service fee. A card surcharge is an additional fee charged by a business when a customer chooses to pay by card. That’s what the October 2026 changes address.
RewardPay is different.
RewardPay is an optional payment service that lets businesses use their existing cards to pay business expenses including bills from suppliers that don’t normally accept credit card payments.
The RewardPay fee is the cost of using that payment service. It isn’t a surcharge added by the business you’re paying, so the October 2026 surcharge changes don’t affect it. The RBA also distinguishes payment-service fees from card surcharges.
What stays the same at RewardPay?
Your RewardPay fees aren’t changing.
The October 2026 reforms don’t change the cost of using RewardPay to pay your business expenses by card.
Your card rewards continue to be determined by your card issuer and the terms of your card.
Your RewardPay partner points continue as normal.
You can continue earning points through RewardPay’s partner programs, including Qantas, Velocity, Accor and Luxury Escapes, subject to the applicable program and RewardPay terms.
Your cash-flow strategy doesn’t change.
You can continue using your card’s available interest-free period to help manage the timing of your business payments, subject to your card’s terms and conditions.
Quick questions & answers
Does the surcharge ban change RewardPay’s fees?
No. The surcharge changes apply to fees that merchants add when customers pay by card. RewardPay is a buyer initiated payment service you choose to use to pay your own business expenses by card. The RewardPay fee is not a merchant surcharge and isn’t changing as a result of these reforms.
Does the surcharge ban apply to Amex?
American Express is also removing surcharging from 1 October 2026, although it isn’t covered by the RBA’s formal no-surcharge regulation. This doesn’t change the way you use Amex through RewardPay.
Will my credit card points be reduced?
From 1 October 2026, the interchange cap for domestic consumer credit cards falls from 0.8% to 0.3%, while the cap for domestic commercial credit cards remains at 0.8%. Card issuers ultimately decide their own rewards programs, so any change to your points will depend on your issuer. Check with your issuer for updates to your specific card.
Can I still pay business bills with a credit card through RewardPay?
Yes. The October 2026 surcharge changes don’t prevent you from using RewardPay to pay eligible business expenses by card.
The bottom line
Card surcharges are ending. However, there are no changes to RewardPay.
From 1 October 2026, customers will no longer face surcharges on eftpos, Mastercard or Visa payments, with American Express also removing surcharging.
Your RewardPay fees stay the same, you can continue paying business bills by card, and you can continue earning the card and RewardPay partner rewards available to you.
New to RewardPay? Create a free account and start earning rewards on your business expenses.
This article is provided for general information only and does not constitute financial, legal or tax advice. Card rewards are subject to the terms and conditions of your card issuer and relevant rewards program. RewardPay fees and partner rewards are subject to applicable RewardPay terms and conditions. Information about the October 2026 card surcharge reforms is current at the time of publication and may be subject to change.
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Signing up is free, takes around 5 minutes, and there are no setup fees or ongoing obligations. Click here to register. You will need your ABN, email address, and mobile number. When creating your password, make sure it is unique to RewardPay and stored somewhere safe. Once registered, check your email to verify your email address, then log in and complete a one-time identity verification. Once verified, your account is ready to start making payments and earning rewards.
RewardPay offers three subscription tiers. The Free tier has no platform fee and you only pay a processing fee per transaction. The Silver tier ($79/month) and Gold tier ($159/month) offer progressively lower Amex transaction rates, making them well suited to higher volume businesses. Visa, Mastercard and Bank payment fees are the same across all tiers. All platform fees are billed 3 months in advance and processing fees are a deductible business expense. See our full pricing breakdown here.
RewardPay supports payments to any Australian business with an active ABN – including suppliers, the ATO, superannuation clearing houses, rent, contractors, marketing, utilities, equipment and accounting. Payroll payments are also supported via Visa, Mastercard or Pay-by-Bank. Some restrictions apply – see the RewardPay Terms & Conditions for details.
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