Australian travel businesses face significant cost and operational pressures as sweeping regulatory changes take effect on 1 October, according to the Reserve Bank of Australia and industry bodies. Visa, Mastercard, eftpos, and American Express are introducing strict ‘no surcharge’ rules that ban businesses from adding extra fees simply because a customer pays by card. The reform forces agencies to overhaul payment systems, audit outstanding diary balances, and absorb processing costs that can severely eat into already tight profit margins.
RBA Regulations Ban Card Surcharges Across Major Networks
Following Reserve Bank of Australia regulatory updates, Visa, Mastercard, and eftpos will implement no surcharge rules on 1 October 2026, according to official notices. American Express will also prohibit surcharging from the same date. These rules operate through card networks and merchant contracts, meaning businesses that accept these cards can no longer pass processing costs directly onto the consumer through a card fee. The Australian Competition and Consumer Commission continues to enforce consumer law, including rules against misleading pricing.
While genuine booking and service fees that are separate from the customer’s choice of payment method can remain, the ACCC warns businesses against relabelling old card surcharges to sidestep the new rules. According to the ACCC, such relabelling could amount to misleading conduct. Mandatory booking or service fees must be fully included in the minimum total price displayed to consumers at the start, preventing agencies from leaving unavoidable charges until checkout.
Margin Pressures Threaten Travel Agency Revenue
Travel businesses face unique exposure under the upcoming rules because an agency can process a substantial holiday payment while retaining only a fraction of its total value as revenue. According to industry calculations, a hypothetical $10,000 booking with a 1% card processing cost equals $100. If an agency earns $1,000 on that booking before expenses, absorbing the $100 merchant fee consumes 10% of those earnings.
The Australian Travel Industry Association has warned that the reforms could push travel prices up by at least 1% as businesses seek to recover payment costs elsewhere. The scale of industry concern emerged in April when more than 700 travel professionals attended an ATIA webinar hosted with Mint Payments, marking ATIA’s largest webinar attendance on record. Corporate and luxury agencies face heightened risk due to high-value transactions and strong corporate client reliance on credit cards.
Interchange Fee Caps Lower Costs But Demand Scrutiny
The RBA is lowering domestic interchange fee caps on 1 October alongside the surcharge ban, but agencies should not assume bank bills will drop by an identical margin. Interchange is the fee paid by a business’s acquiring bank to the customer’s card-issuing bank during a transaction. Because total merchant bills also include card network fees and payment provider charges, interchange represents only one ingredient in the final cost.
According to payment guidance, agencies should ask providers specifically how lower interchange caps will impact total payment acceptance costs from 1 October. Furthermore, interchange caps on foreign-issued cards acquired in Australia will not begin until 1 April 2027, creating a six-month gap that businesses taking overseas payments must factor into provider negotiations.
Audit Outstanding Bookings and Supplier Payment Channels
Travel’s deposit-now, balance-later booking model creates immediate compliance tasks for advisors before the deadline. The RBA cautions that a card payment made on or after 1 October may no longer be eligible for a surcharge, even if the invoice was issued months earlier. Agencies must check outstanding balances, scheduled payment requests, and existing terms before proposing price adjustments.
The Australian Small Business and Family Enterprise Ombudsman recommends reviewing processing costs, updating customer information, and testing systems ahead of the deadline. This review must extend beyond physical office terminals to online payment links, invoicing software, automated balance reminders, and website terms. Additionally, the RBA notes that business-to-business card payments are not automatically exempt, requiring agencies to map out how suppliers and host platforms handle card settlements.
Pro Tip: Model what happens if clients who currently transfer money switch to cards once surcharges disappear. Last year’s merchant bill may not reflect your upcoming costs if payment habits shift.
Frequently Asked Questions
When do the new no-surcharge rules take effect?
According to Reserve Bank of Australia regulations, the no-surcharge rules take effect on 1 October 2026 for Visa, Mastercard, eftpos, and American Express.
Can travel agencies still charge booking or service fees?
Yes. Genuine booking and service fees separate from the customer’s choice of card can remain, provided they are included in the minimum total price displayed upfront and not used as a renamed card surcharge, according to the ACCC.
Will lower interchange fee caps automatically reduce my merchant bill?
Not necessarily. Interchange is only one component of a merchant bill that also includes network fees and provider charges, meaning agencies should request a detailed cost breakdown from their payment provider.
How does the surcharge ban affect existing bookings with outstanding balances?
The RBA warns that a card payment made on or after 1 October may no longer be eligible for a surcharge, even if the invoice or booking was created earlier.
What is your agency doing to prepare for the upcoming surcharge ban? Share your strategy in the comments below, explore more industry updates on our site, and subscribe to our newsletter for the latest travel business insights.
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