Money & Insurance

Australia's Card Surcharge Ban Sounds Like Free Money, Here's the Catch Starting October 1

From 1 October, Australian businesses can't add a card surcharge, but the same reform is why Qantas and others plan to raise base fares instead.

By Laxman Rawal · Sep 22, 2026

From 1 October 2026, Australian businesses can no longer add a surcharge just because you paid by debit, prepaid or credit card — the Reserve Bank of Australia is banning it outright across eftpos, Mastercard and Visa, with Amex, UnionPay and PayPal adopting…

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What actually changes at checkout on 1 October

Any business that has been tacking 1—2% onto your bill for "paying by card" has to stop, whether you're booking a domestic flight, paying a Kathmandu-bound travel agent in Australian dollars, settling a hotel bill or buying gear before a trip. The ban covers…

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Why this might not actually save you money on your flight

Airlines were among the heaviest surchargers in Australia, and Qantas has already told investors it plans to raise base airfares to make up the revenue it will lose once card surcharges disappear. Jetstar, Virgin Australia and Rex are expected to do the same…

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What happens to your frequent flyer credit card

It likely gets less generous. The interchange fee cut from 0.8% to 0.3% removes a chunk of the revenue banks currently use to fund reward points, airport lounge access and other perks on travel credit cards. Analysts covering the reform expect banks to…

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What this means if you're saving points toward a Nepal trip

What this means for you If you're funding part of an Everest Base Camp or Annapurna trek with frequent flyer points, don't assume your card's earn rate stays where it is through 2027 — several major issuers have flagged changes once the interchange cut lands…

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Frequently asked questions

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Does the ban apply to overseas purchases, like paying a Nepal trekking agency directly

No. The RBA's rules govern Australian merchants and Australian-regulated card networks; a payment you make directly to an overseas business, in a foreign currency or through an overseas payment gateway, isn't covered by this ban.

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Can Qantas or Jetstar still charge a card fee after 1 October

Not as a card surcharge, but they can still charge a booking or service fee that applies regardless of how you pay — the RBA's FAQ explicitly excludes booking fees and service fees from the ban, which is why airlines can keep a very similar charge under a…

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Will this make flights to Nepal cheaper

Not directly. It removes one line item (the card surcharge) while airlines have signalled they'll raise the base fare to offset lost surcharge revenue, so the total price you pay is unlikely to fall because of this reform alone.

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