SYDNEY, April 1, 2026, 07:14 AEDT
Late Tuesday, Commonwealth Bank of Australia flagged potential changes to its card lineup, rewards, and perks after the Reserve Bank of Australia moved to ban most card surcharges—those familiar checkout fees—and slashed interchange fees, upending the business model for consumer cards starting Oct. 1. Though the bank supported the surcharging ban, it cautioned that broader fee cuts could pressure a vital funding source for both cards and payments systems. 1
The warning is notable: CBA, Australia’s biggest lender, tends to lead the pack in retail banking. According to the RBA, the changes could save consumers A$1.6 billion annually and reduce business payment costs by roughly A$900 million. Banks, though, push back, saying the interchange fee — embedded in card transactions and used to fund both rewards and payment infrastructure — faces a direct reduction. 2
CBA voiced its support for dropping surcharges, citing a push for more transparent payments, but pushed back on the RBA’s move to cut domestic interchange to what it described as “the lowest level of any country globally”. The bank said it’s assessing the impact on customers—pointing to possible changes in “card offerings, rewards and associated benefits”—and promised to notify users directly if any products are altered. 1
Governor Michele Bullock said surcharging isn’t “working as intended” anymore, as more people give up cash and fees get tougher to dodge. Surcharges on eftpos, Visa, and Mastercard will disappear starting Oct. 1. The domestic consumer credit-card interchange fee cap will be cut back to 0.3% from the current 0.8%. There’s also a new round of consultation coming in mid-2026, this time focused on mobile wallets, American Express, buy-now-pay-later outfits, and e-commerce platforms. 3
Simon Birmingham, chief executive of the Australian Banking Association, argued the cut would “simply shift” additional fees onto multinational payments and tech giants, making it tougher for domestic banks to invest down the line. That’s essentially the same stance CBA has taken, saying the RBA is handing an advantage to offshore competitors. 4
Savings could prove elusive. According to Fei Gao at the University of Sydney, merchants might just build those payment costs into their shelf prices. Brad Kelly, co-founder of the Independent Payments Forum, pointed out that cafes running on razor-thin 3% to 3.5% margins aren’t in a position to eat merchant fees of 1% or more. 3
CBA keeps pulling ahead of the pack. The bank’s record first-half cash earnings came through in February, and it’s been grabbing business-banking customers from National Australia Bank and ANZ. That scale could turn any card shakeup at CBA into a cue for Westpac, NAB or ANZ to follow. 2
Payments players are circling. Tyro CEO Nigel Lee described the move as a “win for consumers and small business,” arguing that simpler pricing could help merchants size up their options and push providers to compete harder. 3
CBA hasn’t specified a timeline for changes or identified which products will see adjustments first. So far, the bank is sticking to its line that it anticipates “some adjustments” as the RBA enters the next stage of its wider review of Australia’s payments system. 1
