Will credit card surcharges be banned? What tradies need to know

If you run a trade or maintenance business, you’ll know customers love tapping their card, phone, or watch to pay. It’s fast and convenient, but for business owners, every tap comes with a fee. Many tradies have tried to offset this by charging a small “credit card surcharge.”

But now, the rules are changing. In the UK and Europe, card surcharges are banned. Here in Australia, the Reserve Bank (RBA) is reviewing whether to follow suit. And from 1 January 2026, debit card surcharges will be banned, with credit card surcharges potentially next.

So what does this mean for your business? Let’s break it down.

Why is this happening?

The Reserve Bank is reviewing payment costs because:

• Customers hate surcharges.

• Small businesses pay up to 3x more in fees than big retailers.

• Banks argue the current system isn’t working.

The goal is to cut costs and make payments more transparent.

What fee's are we talking about?

Every tap, swipe, or online payment costs your business something. The RBA estimates average fees at:

• Eftpos: under 0.5% per transaction

• Visa/Mastercard debit: 0.5%–1%

• Visa/Mastercard credit: 1%–1.5%

That doesn’t sound like much, but let’s put it in tradie terms.

• If you invoice $20,000 a month and 80% of your customers pay by card, that’s $16,000 worth of payments.

• If you’re paying 1% in merchant fees, that’s $160 gone every month, nearly $2,000 a year.

• If you’re at the higher end (say 2%), you could be losing $4,000+ a year in fees.

For a small business already juggling suppliers, wages, and tax bills, that’s serious money.

What it means for tradies

If surcharges go, you’ll need to:

• Absorb the cost (lower margins).

• Lift prices slightly to cover it.

• Shop around, providers vary a lot.

Think about it this way: If you’re quoting a $5,000 bathroom reno and the customer pays on credit card, the 1.5% fee is $75 gone before you’ve even started. Multiply that by dozens of jobs a year, and it adds up fast.

What you can do now

1. Check your current merchant fees.

2. Compare providers, don’t stick with the same bank out of habit.

3. Build payment costs into your pricing.

4. Review how customers pay.

Bottom line

The days of slapping on a 1.5% surcharge and leaving it at that are numbered. Whether or not surcharges are fully banned, the writing’s on the wall: card payments are the norm, and small businesses need a plan for the fees that come with them.

At AccNav, we help tradies cut hidden costs, tighten cash flow, and protect their margins. If you want a clear plan before the new rules hit, check out our Bookkeeping Series course here.