[et_pb_section fb_built=”1″ _builder_version=”4.16″ da_disable_devices=”off|off|off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row column_structure=”1_3,2_3″ _builder_version=”4.23″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” width=”100%” custom_padding=”||0px||false|false” locked=”off” global_colors_info=”{}”][et_pb_column type=”1_3″ module_class=”table-contents” _builder_version=”4.23″ background_color=”#f3f2f6″ custom_padding=”25px||25px||true|false” sticky_position=”top” sticky_limit_bottom=”section” sticky_position_tablet=”top” sticky_position_phone=”none” sticky_position_last_edited=”on|desktop” border_radii=”on|24px|24px|24px|24px” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.23″ text_font=”||||||||” global_colors_info=”{}” background__hover_enabled=”on|desktop”][\/et_pb_text][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Intro” _builder_version=”4.27.6″ header_2_font_size=”32px” custom_margin=”||0px|||” hover_enabled=”0″ header_2_font_size_tablet=”30px” header_2_font_size_phone=”26px” header_2_font_size_last_edited=”on|tablet” global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n
From 1 October 2026, the Reserve Bank of Australia (RBA) will ban surcharges on debit, prepaid, and credit cards on EFTPOS, Visa, and Mastercard networks (like Apple Pay). This is a major overhaul, as the ban could save consumers and businesses millions of dollars.<\/p>\n
Surcharging has become the norm. Businesses add a fee to their advertised prices to cover the costs of accepting card payments. Surcharges currently look like something like this:<\/p>\n
[\/et_pb_text][et_pb_text disabled_on=”off|off|off” admin_label=”Scenario” _builder_version=”4.27.6″ _module_preset=”default” text_text_color=”#0a004a” background_color=”#eeecff” custom_margin=”30px||||false|false” custom_padding=”20px|30px|30px|30px|false|false” border_radii=”on|20px|20px|20px|20px” box_shadow_style=”preset2″ locked=”off” global_colors_info=”{}”]<\/p>\n
Example:<\/strong><\/span><\/p>\n A customer purchases a sandwich from a deli for $15.<\/p>\n They pay by credit card.<\/p>\n A 1.5% surcharge fee is added to the purchase price, bringing the total to $15.23<\/p>\n From 1 October 2026, surcharging is no longer allowed on designated card networks (EFTPOS, Visa, and Mastercard).<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.27.6″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n In addition to the ban, the RBA is reducing the interchange fees and capping them to:<\/p>\n Interchange fees are a wholesale cost that the merchant payment provider \u2014 such as Mastercard \u2014 pays to the customer’s bank each time the card is used.<\/p>\n [\/et_pb_text][et_pb_text disabled_on=”off|off|off” admin_label=”Scenario” _builder_version=”4.27.6″ _module_preset=”default” text_text_color=”#0a004a” background_color=”#eeecff” custom_margin=”30px||||false|false” custom_padding=”20px|30px|30px|30px|false|false” hover_enabled=”0″ border_radii=”on|20px|20px|20px|20px” box_shadow_style=”preset2″ locked=”off” global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n Example:<\/strong><\/span><\/p>\n A customer pays $100 using a credit card.<\/p>\n In the transaction, the payment provider pays an interchange fee of 0.3% (30 cents) to the card-issuing bank (the customer’s card).<\/p>\n The payment provider also collects its own scheme fees and a slight margin on the transaction.<\/p>\n The remaining amount is settled to the business.<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.27.6″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n The interchange fee is just one component of the merchant service fee in a card transaction.<\/p>\n The RBA is only capping the interchange fee, not merchant service fees as a whole.<\/p>\n For more information, check out the RBA\u2019s decision here<\/a><\/em><\/p>\n The RBA came to a decision to ban card surcharges on the designated card networks for a number of reasons:<\/p>\n The intention of surcharges when the rules were put in place over two decades ago was to push consumers to use cheaper payment options. In the current card-dominated landscape, these rules are no longer fit for purpose.<\/p>\n On the surface, this looks like a big win for both consumers and businesses. Capping the interchange fee should provide businesses with relief, as the RBA modelling projects $910 million in savings per year when the caps are fully in place. However, it doesn’t eliminate merchant service fees entirely.<\/p>\n Businesses will still need to pay their providers per card transaction. With the ban, businesses can\u2019t pass on the cost of merchant service fees to consumers through a surcharge. This could result in businesses simply \u2018pricing\u2019 MSFs into their current prices.<\/p>\n But the ban may give small businesses an opportunity to shop around for card payment systems<\/a> with better prices. As it stands, the cap should reduce MSFs across the board, leading businesses to seek the lowest fees.<\/p>\n Overall, the ban should be a positive for consumers and businesses. Customers will know exactly what they will pay at the till, with no surcharging to surprise them. For businesses, there should be a reduction in how much they pay in merchant service fees. Lower interchange fees should also give businesses the chance to find better deals when choosing payment providers.<\/p>\n [\/et_pb_text][ba_social_share icon_bg=”#03002e” icon_padding=”10px|12px|10px|12px|true|true” layout=”classic” show_text=”off” btn_padding=”0px|0px|0px|0px|false|false” btn_bg_color=”RGBA(255,255,255,0)” _builder_version=”4.23″ _module_preset=”default” custom_margin=”50px||||false|false” custom_padding=”25px||||false|false” custom_css_before=” content: %22SHARE THIS%22;|| font-size: 16px;|| font-weight: 700;|| line-height: 22px;|| letter-spacing: 0em;|| text-align: center;|| color: #ff5447;|| margin-bottom: 10px;|| display: inline-flex;|| position: absolute;|| margin-top: 10px;” border_width_top_main=”1px” border_color_top_main=”#e4e4e4″ border_radii_icon=”on|5px|5px|5px|5px” global_colors_info=”{}” custom_css_before_last_edited=”off|desktop”][ba_social_share_child _builder_version=”4.23″ _module_preset=”default” global_colors_info=”{}”][\/ba_social_share_child][ba_social_share_child network_type=”facebook” _builder_version=”4.23″ _module_preset=”default” global_colors_info=”{}”][\/ba_social_share_child][ba_social_share_child network_type=”linkedin” _builder_version=”4.23″ _module_preset=”default” global_colors_info=”{}”][\/ba_social_share_child][ba_social_share_child network_type=”email” _builder_version=”4.23″ _module_preset=”default” global_colors_info=”{}”][\/ba_social_share_child][\/ba_social_share][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" The RBA card surcharge ban is coming October 2026. Learn how interchange caps affect small businesses, payment fees, and everyday prices.<\/p>\n","protected":false},"author":36,"featured_media":302785,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":" Changes to how casual employees can transition to permanent employment are coming this year. The new process adds an employee-driven element, where, depending on certain circumstances, a casual employee can notify their employer of their intention to move from casual to permanent employment.<\/p> This is a marked departure from the previous rules, which were entirely up to the employers. So, what does this new process look like, and what does it mean for small businesses?<\/p> Let\u2019s go through it.<\/p> The \u201cClosing Loopholes\u201d amendment has directly changed how casual employees remain casual or transition to permanent employment.<\/p> Under the old rules in the National Employment Standard, a casual employee\u2019s employment status was entirely employer-driven. This meant that any conversation or initiation of a casual employee was through the employer's agreement or arrangement.<\/p> Now, employees can let their employer know their desire to change their working status, called the employee choice pathway.<\/p> Under the employee choice pathway, casual employees can pursue permanent employment by notifying their employers of their intent to change from casual to permanent. The following criteria have to be met before notice can be given:<\/p> The changes have been in effect for medium-large businesses since 26 February 2025. Under the legislation, businesses with 15 or more employees must follow the employee choice pathway procedure.<\/p> The changes will come into effect on 26 August 2025 for small businesses (15 employees or fewer). Under the rules of casual employment, an employee may only notify their intent for permanent employment if they have been employed for more than 12 months.<\/p> The employee choice pathway is twofold: a notice of intent to transition from casual to permanent, and the response to that notice. While this may seem simple, a number of factors determine the outcome. First, before a notice can be made to move from casual to permanent, we must look at what defines casual employment status.<\/p> The legal definition of what constitutes casual employment can be found in the Fairwork Act 2009 (15A). This is a rather large document, so for all intents and purposes, casual employment can be simply defined like this:<\/p> If you are unsure about the definition of casual employment<\/a>, the Fairwork Ombudsman has materials and resources.<\/p> The notice a casual employee gives to their employer about moving to permanent employment requires two factors to be satisfied:<\/p> Here is an example of a notice to demonstrate what this would look like in the workplace.<\/p> Imagine a bartender working casually for over 10 months at a large pub with more than 15 workers. This casual employee has been given more responsibilities in the last few months, including rostering other casuals. The employee has also noticed they work fixed, regular, rostered shifts. With this information and a desire for more security in their employment, they approach their employer with notice to transition from casual to permanent employment.<\/em><\/p><\/blockquote> In this example, the employee meets the requirements to give notice and pursue the casual choice pathway. After notice occurs, the employer is required to respond. Let\u2019s take a look.<\/p> Once an employer receives a notice from their employee, they have 21 days to respond. Before a response is made, the employer should consult with the employee about what changes the transition would make to their employment. This discussion should include:<\/p> After a consultation, the employer can accept or reject the notice of employment change.<\/p> When accepting a change, the employer needs to include what has been consulted previously and provide a new written employment agreement with their employee. The changes must immediately be implemented after the acceptance of employment status unless the employer and employee have agreed on a different commencement date.<\/p> When it comes to rejecting a notice, employers need a good reason. An employer can justify a rejection of the notice when either of the following circumstances apply:<\/p> Accepting or rejecting an employee's notice must be thoughtfully considered, whatever the circumstances, and communication should be clear and concise. If there is a disagreement, it may come down to both sides not effectively communicating. However, dispute resolution procedures are in place if the relationship is beyond solving in the workplace. It also should be noted that protections are in place<\/a> against any adverse actions taken in reaction to an employee submitting a notice.<\/p> Any dispute must be resolved first in the workplace. However, if a dispute occurs due to a disagreement about an employee\u2019s employment status, there are a number of avenues that can be explored:<\/p> Unfortunately, if either of these doesn\u2019t remedy the situation, the matter may have to be resolved in court, arbitrated by the Federal Circuit Court.<\/p> As the changes on the pathway from casual to permanent employment are new, there will be a degree of awkwardness in implementation. What is essential is good communication and honesty when discussing an employee's future in your business. As the date for small businesses to follow the new rules is set for 26 August 2025, there is plenty of time to review your procedures for managing your staff<\/a>.<\/p> You may find that the new process has new opportunities for dedicated employees<\/a> to commit fully to your business. Whatever the employee choice pathway brings, ensure you are prepared with proper payroll systems<\/a> to navigate the changing landscape.<\/p>","_et_gb_content_width":"","inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[344],"tags":[],"class_list":["post-302782","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\n\n
Why are card surcharges getting banned?<\/h2>\n
\n
What does the surcharge ban mean for businesses?<\/h2>\n
The surcharge ban and small businesses<\/h2>\n
Key changes to casual employment rights<\/h2>
Who is affected by the employee choice pathway?<\/h2>
The process involved<\/h2>
Defining casual employment<\/h3>
Giving notice of employment change<\/h3>
Responding to a notice<\/h3>
Accepting or rejecting an employment change notice from an employee<\/h3>
What happens if there is an employment dispute?<\/h2>
The bottom line<\/h2>