Card surcharge reforms welcomed in cash-light economy

Card surcharge reforms welcomed in cash-light economy

The Reserve Bank of Australia will remove surcharges on debit, prepaid and credit cards, with reforms due to be implemented from October this year. An RMIT expert explains why this decision is validated in today’s financial climate.

Professor Angel Zhong, School of Economics, Finance and Marketing 

"The RBA’s decision to ban card surcharges reflects the reality that, in a cash‑light economy, surcharging no longer works as an effective consumer choice mechanism. 

"For consumers, the key benefit is simplicity: the advertised price should increasingly be the final price, reducing confusion and frustration at checkout. 

"Payment costs do not disappear, and how much is absorbed by businesses versus passed on to consumers will depend on how the reforms are implemented in practice. 

"This makes the accompanying cuts to interchange fee caps and new transparency obligations critical, particularly for small businesses that currently face higher fees due to limited bargaining power. 

"Surcharge bans work best when tightly paired with fee regulation. Without this, cost pressures risk shifting rather than easing. 

"International experience indicates that reducing or banning surcharges may result in less generous card rewards programs, as costs are rebalanced elsewhere in the system. 

"More broadly, the reform signals a growing recognition that digital payments function as essential economic infrastructure, not optional add‑ons — with important implications for fairness and competition."

Dr Angel Zhong is a Professor of Finance, specialising in global financial markets, behaviour and trends.  

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General media enquiries: RMIT External Affairs and Media, 0439 704 077 or news@rmit.edu.au

31 March 2026

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31 March 2026

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