Source: The Conversation (Au and NZ)
From October 1, businesses will no longer be able to add surcharges to payments made on the EFTPOS, Visa or Mastercard networks, following reforms by the Reserve Bank of Australia.
The idea is that the price consumers see should be the price they pay. If a cafe’s menu lists an oat latte for sale at A$6.50, it won’t be able to charge you, say, $6.57 for using a debit card or $6.63 for using a credit card.
However, banning a visible fee does not make card payments free. Rather than absorb the remaining cost, some organisations may increase prices, or remove certain payment options altogether.
Last month, Macquarie Bank announced it was removing the option to pay by credit or debit card directly on DEFT, which processes more than 1.2 million rent payments each month. According to the Australian Financial Review, Macquarie controls an estimated 40% of Australia’s rental payments market.
Using a credit card to pay rent might seem unusual. But for some people, despite the extra fees, credit offers a way to manage cash flow, using the interest-free period to bridge the days between rent day and payday.
Could a reform designed to save consumers money leave some with fewer ways to pay? The surcharge ban has been presented as a cost-of-living win, but its consequences will not be shared evenly.
Someone has to foot the bill
A surcharge is only the visible part of the costs that sit behind a card payment. Banks, card networks and payment providers still charge businesses to process and move the money.
The RBA has acknowledged that from October 1, these costs may instead come to be reflected in a business’s overall prices.
While this may make the final “sticker” price clearer, it can also mean customers using lower-cost payment methods help pay for the rewards enjoyed by users of premium rewards cards.
The RBA is also lowering caps on “interchange fees”, which are paid between the banks handling a card transaction.
This should reduce businesses’ cost of accepting cards, but card payments will not become free. Businesses can absorb the remaining cost, encourage another payment method or stop accepting cards.
What’s the big deal?
For its rental payments platform DEFT, Macquarie has chosen the third option. Macquarie is steering renters towards using fee-free PayID, part of a broader shift from card networks to payments made directly between bank accounts.
Screenshot, DEFT Payment Systems
For renters with funds available, switching should be easy. But the consequences differ depending on why renters use cards.
For those managing cash flow with cards, that buffer will no longer be available through DEFT.
Macquarie acknowledges there is no like-for-like replacement for these tenants. A simpler payment process does not necessarily produce a fairer outcome.
Tax bills and more
If you use a debit card to make a payment to the Australian Taxation Office (ATO) or Services Australia, surcharging is already banned.
However, both of these agencies currently offer the option to pay by credit card. A small fee may apply, although this is charged by the card supplier rather than either agency.
According to a recent report by industry newsletter PayDay News, the ATO is currently reviewing its card payment options. No decision has been announced, but any move to restrict card payments could establish a public-sector precedent.
If the tax office limits its current card payment option, taxpayers who rely on cards to manage their cash flow may instead need a payment plan or other credit.
Read more:
No more card charges: how Australians can switch to fast, fee-free payments right now
Playing ‘Whac-A-Mole’ with payments
When a payment option for a particular service is removed, some people may choose to use a third-party payment service which still offers it. These payment apps handle the transaction on a customer’s behalf, such as by charging a renter’s credit card and sending a bank transfer to the real estate agent.
For example, digital payments platform RentPay currently lists a 1.15% fee for card payments, while direct debit and PayID are free (that card-specific fee may need to change under the new rules from October 1).
However, the new rules do not cover booking or service fees. So depending on the app, customers may instead face platform, transfer or financing charges.
Using another platform may also require renters to open an account and share more personal and financial information, exposing them to additional data risks.
The surcharge ban may therefore work like a game of Whac-A-Mole. Remove a visible fee in one place, and the underlying cost may simply reappear in overall prices or alternative service fees, while payment choice narrows.
Could we lose flexibility?
Across both the public and private sectors, some organisations may decide that withdrawing the option to pay by card is easier than absorbing the cost. This could create a domino effect in which surcharges disappear, but card payment options become less widely available across the economy.
The changes we’ll see from October 1 should make advertised prices clearer and lower some card acceptance costs. But regulators should monitor who ultimately pays, whether card acceptance declines and whether new charges emerge.
For the reforms to deliver a genuine cost-of-living benefit, consumers must also retain affordable ways to pay.
Fengfei Li does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.
Original source: https://analysis1.mil-osi.com/2026/08/17/do-you-pay-rent-with-a-credit-card-soon-you-may-not-have-the-option/