Trump Faces Uphill Battle Seeking China’s Help on Iran Conflict 
Kevin Warsh Advances Toward Fed Chair Role Amid Political Tensions 
Australia Housing Tax Reform Sparks Debate Over Property Investor Tax Breaks 
Trump Pushes China Market Access During High-Stakes Xi Summit 
Oil Prices Slip as Strait of Hormuz Disruptions and U.S. Inventory Data Keep Markets on Edge 
Bank of Korea Signals Potential Interest Rate Hikes as Inflation Remains Elevated 
BOJ Rate Hike Expectations Grow as Board Member Signals Hawkish Stance 
Japan Considers Extra Budget Aid Amid Rising Fuel and Utility Costs 
US Stock Futures Slip as Iran Tensions and Hot Inflation Data Pressure Wall Street 
Dollar Surges as Inflation Data Fuels Fed Rate Hike Expectations 
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.
