Card surcharges vs rewards before 1 October 2026

The answer changes on 1 October

For a purchase made through 30 September 2026, first convert the card surcharge into dollars and compare it with the reward value you can reasonably use. A percentage reward does not cancel a larger percentage surcharge. If a surcharge-free payment method is available and meets your needs, that is the clean comparison—not the card’s headline earn rate.

The ACCC says businesses can currently impose a card surcharge, but it must not exceed the business’s cost of accepting that payment type. It also says the current framework continues only through 30 September. This article is dated because the checkout decision changes on 1 October 2026; it is educational, has no commission links and is not legal advice.

Source: Australian Competition and Consumer Commission — Card surcharges

A reproducible checkout calculation

Suppose a purchase is A$240, the displayed card surcharge is 1.25%, and your own redemption history suggests the rewards from this purchase are worth 0.8%. The surcharge is A$3.00 and the reward value is A$1.92, leaving a net card-payment cost of A$1.08. All three percentages and values are hypothetical; they are not market averages or a promise from an issuer.

Use the value you actually obtain from rewards, not a promotional maximum. If you cannot identify a cash-equivalent value you would genuinely redeem, use zero for the initial comparison. A second scenario reverses the answer: if there is no surcharge for that card, the A$1.92 hypothetical reward is no longer offset by a payment surcharge, although card interest or account fees could still outweigh it elsewhere.

Check the displayed price under the current rules

The ACCC states that when there is no way for a consumer to pay without a surcharge, the minimum unavoidable surcharge must be included in the displayed price. That is separate from deciding whether a particular card is worthwhile. Take a screenshot or photo of the price and checkout options if the total changes unexpectedly, and ask the business to identify the payment type and surcharge before paying.

The ACCC accepts reports and can investigate excessive card-payment surcharges, but it does not resolve individual complaints or set a business’s surcharge amount. That boundary matters: this checklist helps you document a transaction, but it does not determine whether a specific charge is unlawful.

Source: Australian Competition and Consumer Commission — Card surcharges

What changes from 1 October 2026

The RBA’s 31 March 2026 decision removes surcharging on debit, prepaid and credit cards on the designated eftpos, Mastercard and Visa networks, with the removal taking effect on 1 October. The ACCC’s consumer guidance adds that American Express has also decided to introduce a no-surcharge rule from that date.

The ACCC explains that these are card-network rules reflected in merchant contracts and enforced by networks or payment service providers, not by the ACCC. At a checkout on or after 1 October, identify the actual card network and ask what the fee is for. Do not assume every line called “fee” is a prohibited card surcharge.

Source: Reserve Bank of Australia — Merchant card payment costs and surcharging conclusions · Australian Competition and Consumer Commission — Card surcharges

What the change does not remove

The ACCC says the change is limited to card-payment surcharges. Hospitality weekend or public-holiday surcharges can continue, as can distinct booking, delivery or service fees subject to their existing price-display rules. A business may also incorporate payment acceptance costs into its overall prices instead of adding a separate card surcharge.

That is the main counterexample to a simple “all surcharges end” headline. Compare the advertised total with the final total and read the description of any separate charge. A higher base price after 1 October is not itself proof that a hidden card surcharge has been applied, and this guide does not assess an individual merchant’s compliance.

Source: Australian Competition and Consumer Commission — Card surcharges

Use a two-date checkout checklist

Through 30 September: note the purchase price, surcharge rate, dollar surcharge, surcharge-free alternatives and your conservative reward value. Choose by the net dollar result and your repayment plan. From 1 October: check the network on the card, compare the advertised and final totals, and ask the merchant to name any remaining fee.

Save the receipt when a charge is unclear and consult the current ACCC guidance before reporting it. Revisit this article on 1 October because implementation detail may be updated as the rules take effect. The immediate next step is simple: add one “surcharge dollars minus usable reward dollars” line to your next pre-October checkout.

Source: Australian Competition and Consumer Commission — Card surcharges · Reserve Bank of Australia — Merchant card payment costs and surcharging conclusions

Changes to this guide

22 September 2026: First publication with a dated transition guide, primary-source cross-check, calculation review and network originality screening.