European Stocks Steady as U.S.-Iran War, Euro Zone Data Keep Investors Cautious 
UK Economy Posts Surprise June Growth as World Cup and Hot Weather Lift Activity 
BOJ Seen Holding Rates at 1% While Keeping Inflation Risk Warning 
China Automakers Accelerate Global Expansion as Domestic Car Sales Slump 
France Inflation Rises 2.4% in July as Consumer Prices Increase 
Asian Currencies Steady Ahead of US CPI as Oil Prices Rise 
US Dollar Holds Firm as Fed Outlook and Iran Tensions Keep Markets on Edge 
Gold Prices Slip From 10-Week High as Fed and Hormuz Risks Shape Outlook 
Asian Currencies Steady as Dollar Holds Firm After U.S. Inflation Data 
Brazil Cuts Selic Rate to 14% as Inflation Eases but Risks Persist 
Eurozone Bond Yields Fall as Oil Slump Eases Inflation Fears Ahead of Central Bank Meetings 
Japan Government Backs Earlier BOJ Rate Hike as Inflation Pressures Build 
Iran War Escalates as US, Houthis Target Ships Near Key Oil Routes 
China Holds Loan Prime Rates Steady for 14th Month as Economic Recovery Remains Uneven 
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The Reserve Bank of Australia has officially ended card payment surcharges, delivering long-awaited financial relief to millions of Australian consumers. Following an extensive public review, the RBA announced that surcharge fees on eftpos, Mastercard, and Visa transactions will be prohibited beginning October 1, 2025 — a move projected to save consumers approximately A$1.6 billion annually.
Surcharging has long been a frustration for shoppers across the country. An RBA survey of 3,000 consumers found that nearly three in four Australians viewed the practice as unnecessary and wanted it eliminated. The central bank cited growing inconsistency in how surcharges were applied, enforcement difficulties, and declining cash usage as key reasons the current system had become both inefficient and confusing for everyday Australians.
Alongside the surcharge ban, the RBA plans to cap interchange fees — the charges banks collect from businesses on credit card transactions — at 0.3%, reduced from the current 0.8% rate. This cap is expected to lower costs for businesses by around A$900 million per year, though it may also put pressure on bank revenues.
Not everyone welcomes the changes. The Australian Banking Association warned that financial institutions may respond by increasing card fees, adjusting interest rates, or shortening interest-free periods to offset lost income. ABA CEO Simon Birmingham argued that reduced interchange fees would ultimately benefit large multinational payment companies rather than local businesses. The Australian Restaurant and Cafe Association similarly cautioned that merchants could raise menu prices to compensate for merchant fee costs they previously passed directly to customers.
American Express operates under a separate arrangement and will be subject to a new regulatory review beginning mid-2026, which will also examine buy-now-pay-later services, mobile wallets, and e-commerce payment platforms.
The ban marks a significant shift in Australia's payments landscape, prioritizing consumer transparency and affordability in an increasingly cashless economy.
