Australians could save up to $1.2 billion annually on purchases under a new proposal by the Reserve Bank of Australia (RBA) to eliminate card surcharges.

In a statement issued today, the RBA recommended ending surcharges on payments made via Eftpos, Mastercard, and Visa cards, arguing that surcharging no longer serves its original purpose of encouraging more efficient payment choices.

“Consumers currently pay around $1.2 billion in card surcharges each year,” the RBA said. “Avoiding surcharges has become more difficult as cash use has declined. Many businesses now apply the same surcharge rate to both debit and credit cards, and current rules are proving difficult to enforce.”

The central bank said removing surcharges would simplify card payments, improve transparency, and promote greater competition in the payments system.

This recommendation is part of a broader consultation paper released by the RBA, which also includes proposals to require card networks and large acquirers to publicly disclose the fees they charge. This measure aims to help businesses compare rates and negotiate better deals.

Additionally, the RBA is proposing a reduction in interchange fee caps—fees paid by businesses to card issuers—particularly benefiting small businesses, which often pay higher rates. Lower caps on foreign interchange fees were also suggested to help reduce costs for businesses accepting international cards.

The RBA estimates that these changes could save Australian businesses an additional $1.2 billion each year.

A public consultation period is open until August 26, 2025, after which the reforms will be finalized.