Australia announces plans to ban debit card surcharges

The central bank of Australia has announced plans to outlaw debit card surcharges, which the country’s central bank estimates are causing annual consumer costs of nearly 1 billion Australian dollars ($671 million).

The Reserve Bank of Australia (RBA) will review card payments from the beginning of 2026, according to the centre-left-led government of Australia on Tuesday.

The proposed ban would be “another step to protect Australians,” according to Australian Prime Minister Anthony Albanese, who stated that his top priority was lowering the cost of living for households.

The move, according to Treasurer Jim Chalmers, will result in lower costs for small businesses and a “better deal” for consumers.

“Consumers shouldn’t be punished for using cards or digital payments, and at the same time, small businesses shouldn’t have to pay hefty fees just to get paid themselves”, Chalmers said.

The ban would align Australia with a number of other nations, including the European Union, which prohibited debit card surcharges in 2018.

According to the RBA, Australians lose 960.26 million Australian dollars ($645m) annually as a result of increasing consumer preference for card payments over cash.