The Reserve Bank of Australia’s (RBA) decision to ban all card surcharging from 1 October 2026 is a direct hit to small business margins.
It’s a bad decision rooted in ignorance. You only had to watch the RBA Governor yesterday to hear the ignorant spin and then see politicians and media amplify the ignorance.
The $1.6B has not disappeared. rather, they have blocked businesses for legitimately recovering a cost of business over which they have little control.
Newsagents and all small business retailers will now be forced to absorb the high costs of premium and commercial credit cards, which can be as high as 2%.
Everyone involved in this decision and talking up this decision is not a friend of small business.
Ignorant Media Reporting
Media reporting on this decision has been poor, and ignorant. Most outlets are celebrating the “end of fees” without explaining that these costs do not simply vanish.
This is not a saving; it is a cost shift. By failing to explain that businesses must now bake these fees into the price of every item, the media is misleading the public. This decision hides costs and forces cash and debit users to subsidise rewards points for high-end credit card holders.
Taking Initiative
While the broader industry is still reeling, newsXpress has already stepped up for its members, proving a comprehensive strategic advice package and action plan. This ensures they have the tools to adjust their business models before the October deadline.
Immediate Advice for All Newsagents
All newsagents, all small business retailers need to act immediately:
- Review your pricing: With surcharging gone, your cost of doing business has risen. Review your margins across all categories and adjust retail prices to cover these absorbed fees.
- Audit merchant fees: Identify how much you currently collect in surcharges. This is the revenue gap you need to fill, it’s your target.
- Demand Least-Cost Routing (LCR): Contact your bank now. Ensure your transactions are routed through the cheapest network, usually EFTPOS.
- Challenge blended rates: If you are on a flat “blended” rate, you are likely overpaying. Demand unbundled pricing so you can see exactly what the banks are charging you.
The Road Ahead
This decision effectively hands a $1.6 billion win to the banks and card schemes like Visa and Mastercard.
The six-month implementation window is short. Start reviewing your data today to ensure your business remains viable when the ban takes effect.