A significant shift is on the cards for Australian consumers, particularly those grappling with rising cost of living pressures in regional and rural areas.

The Reserve Bank of Australia (RBA) has formally proposed the removal of surcharges on credit and debit card payments, a move that could collectively save Australians a staggering $1.2 billion annually.

This is welcome news for residents of the Back Country, where access to cash can be limited, and card payments are often the norm. For too long, these small, often unavoidable fees have quietly added up, chipping away at already tight household budgets.

The Hidden Burden: How Surcharges Impact Rural Living

While a few cents here and there might seem insignificant, the cumulative effect of card surcharges can become a substantial burden, especially in areas where options for payment are fewer. In many remote communities, cash transactions are becoming less common, pushing more people towards card payments. This means residents are frequently hit with surcharges on everything from groceries at the local general store to fuel at the only petrol station for hundreds of kilometres.

For rural Australians already facing higher prices for goods due to freight costs, and battling the nationwide cost of living crisis with rising fuel, food, and housing expenses, these extra fees are an added strain. The RBA's current review into merchant card payment costs found that surcharging is no longer serving its intended purpose of encouraging more efficient payment choices. In fact, with cash usage declining, avoiding these surcharges has become increasingly difficult.

A Boost for Household Budgets and Local Businesses

The RBA's proposal, which is now open for public consultation until late August 2025, extends to EFTPOS, Mastercard, and Visa cards. If implemented, it could put an estimated $60 back into the pocket of every card-using adult annually. 

Beyond the direct savings for consumers, the RBA also proposes lowering the cap on interchange fees paid by businesses. This is expected to benefit approximately 90% of Australian businesses, with small businesses in particular set to see significant savings – an estimated $185 million collectively. For regional small businesses, this could translate into reduced operational costs, potentially leading to more competitive pricing and less pressure to pass on expenses to customers.

Simpler Payments, Fairer Future

RBA Governor Michele Bullock highlighted that removing surcharging would make card payments simpler, more transparent, and ultimately increase competition in the card payments system. 

“We think the time has come to address some of these high costs and inefficiencies in the system," Ms Bullock said.

“Our goal is a more competitive, efficient, safe payments system for everyone."

"The payments landscape is always evolving, and it’s critically important that we keep pace to ensure it remains safe, competitive and efficient."

The move aligns Australia with practices already in place in other parts of the world, where excessive surcharges have been banned for some time.

For Back Country Bulletin readers, this potential change represents a step towards a fairer payment landscape. It means less confusion at the checkout and a small but meaningful reduction in the everyday costs that contribute to financial stress. 

The RBA will consider feedback on its proposal, with any changes expected to take effect from July 2026.