Card surcharges are ending: What automotive businesses need to know

From 1 October 2026, businesses will no longer be able to apply card payment surcharges on eftpos, Mastercard and Visa debit, prepaid and credit card transactions. American Express, JCB and UnionPay have also confirmed their support for the Reserve Bank of Australia's reforms and are working towards removing surcharges in line with the new requirements.

For the vast majority of Australian businesses that don’t surcharge, or have already switched it off, this change is nothing new. For automotive businesses who still surcharge, this change means making the necessary changes before the 1 October deadline and reconsidering how they manage the costs of accepting payments. While some businesses adjust their pricing to recover these costs, many others absorb payment costs as part of their broader operating expenses and across their vehicle sales, servicing and parts business lines.

The reforms are designed to improve price transparency for consumers. Wherever a customer sees an advertised price, the price they see should reflect the amount they pay. For automotive businesses, this means reviewing card payment surcharges currently applied across dealership, workshop or online payment channels and ensuring they are removed before the reforms take effect.

The changes are also expected to include lower domestic interchange fee caps and greater transparency over payment costs. This should help businesses better understand the fees associated with accepting electronic payments and compare the cost of different payment arrangements more easily.

Although the new rules do not apply until October, businesses who still surcharge, especially those with more complex payment environments, should consider planning now. This means identifying where surcharges are currently applied across their business, including payment terminals, point-of-sale systems, payment links, quotes/estimates, invoices, receipts, customer communications, vehicle deposit requests, service booking systems, or third-party sales platforms. Automotive businesses may also wish to review their merchant statements to better understand their current cost of acceptance, including merchant service fees, interchange and other charges. This can provide a clearer understanding of payment-related costs and help businesses assess how these costs will be managed once surcharging is no longer permitted.

For automotive businesses operating multiple dealerships, workshops, locations or payment providers, it will be worthwhile to check with your software, website and payment providers to understand if any changes are needed before the new rules begin. You may also want to review how your payment systems work and make sure your team knows how to answer customer questions about pricing or payment changes. Clear communication can help reduce confusion with your team and customers.

Reviewing your payment costs, business systems and customer communications now can help make the change smoother and keep your customers informed when the new requirements start on 1 October 2026.