On 22 July 2025, the Reserve Bank of Australia (RBA) announced proposed reforms targeting Visa and Mastercard credit card fees, aiming to lower interchange fees from 0.8% to 0.3% and fully prohibit merchant surcharges on these cards. According to the RBA, these changes could save consumers an estimated A$1.2 billion annually and will require card networks to disclose fee structures more transparently. The consultation period is open until 26 August 2025, with implementation planned for 2026 if the proposals are adopted.
The RBA’s review identifies that current surcharging rules—originally intended to direct consumers toward lower-cost payment methods—are no longer effective. As noted in the official statement, “surcharging is no longer achieving its intended purpose of steering consumers towards cheaper payment methods.” The regulator also emphasises that interchange fees remain especially high for small businesses, affecting competition and operational costs.
Key aspects of the proposed reforms include:
- Lowered interchange caps: Reduction from 0.8% to 0.3% on Visa and Mastercard credit card transactions
- No merchant surcharges permitted: Complete ban on additional fees charged by merchants for these card payments
- Greater fee transparency: Card networks must openly disclose all relevant payment fees
The RBA also cautions that banks’ loyalty programmes may be weakened as a result of reduced interchange income. These changes are designed to create a more competitive environment, increase industry transparency, and support consumer savings. For further details, see the RBA Review Overview.
| Reform Area | Planned Change | Intended Outcome |
|---|---|---|
| Interchange Fees | Cap at 0.3% | Reduce business costs |
| Merchant Surcharges | Banned entirely | Consumer savings & clarity |
| Fee Transparency | Mandatory disclosure | Enhanced competition |
While these changes focus on the Australian market, they reflect broader international discussions about payment fee regulation and consumer protection. UK readers interested in fast and secure withdrawals can learn more about relevant payment methods and regulations here:
