As part of the Reserve Bank of Australia’s Review into Retail Payments Regulation it has released an Issues Paper on Merchant Card Payment Costs and Surcharging examining the costs merchants face when accepting card payments and the framework for surcharging.

The Issues Paper discusses whether the RBA could do more to put downward pressure on merchant card payment costs by promoting competition and efficiency and whether the RBA’s surcharging framework remains fit for purpose.

Separately the Prime Minister has announced the Government is prepared to ban debit card surcharges, subject to further work by the Reserve Bank of Australia (RBA) and safeguards to ensure both small businesses and consumers can benefit from lower costs.

The ban could be introduced from the start of January 2026, subject to consultation with the RBA, the government said.

The Government is also funding the Australian Competition and Consumer Commission (ACCC) to review excessive surcharges.

The Reserve Bank of Australia (RBA) and Treasury have also released a report on central bank digital currency (CBDC).

The report finds that there is no strong case for a retail CBDC in Australia at this time.

The report also explores how a wholesale CBDC could help improve Australia’s financial markets.

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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.