Announcement date
31 March 2026
Link to announcement
Review of Merchant Card Payment Costs and Surcharging
Problem being addressed
Australians extensively use cards to pay for goods and services. They benefit from the convenience and security provided by card payments. However, the Reserve Bank of Australia (RBA) in its review in the 2026 Review of Merchant Card Payment Costs and Surcharging (the review), noted that in an environment of heightened concern around the cost of living, card payment costs and surcharging are attracting more attention from merchants and consumers.
Merchant fees and surcharging are linked. Merchants would be less likely to surcharge consumers if card payment costs were lower. The RBA reviewed whether regulatory settings could be adjusted to put further downward pressure on merchant card payment costs and whether the RBA’s surcharging framework remains fit for purpose.
Proposal
The RBA considered several options explored in the review covering surcharging, interchange fees, and increased transparency.
Assessed Impact Analysis outcome
Compliant Impact Analysis Equivalent (IAE)
Assessment comments
The Office of Impact Analysis (OIA) does not assess the quality of reviews and documents used in lieu of an Impact Analysis (IA). Impact Analysis Equivalents (IAEs) are assessed by the OIA for relevance to the recommended options and for the coverage of the seven Impact Analysis questions.
For this IAE, the RBA used the Review of Merchant Card Payment Costs and Surcharging. The OIA assessed that the options and analysis in the IAE are sufficiently relevant to the proposal.
Regulatory burden
The RBA estimates the preferred option will decrease average regulatory costs by $29.1 million per year, over ten years.