Card Surcharges End on 1 October 2026: What Grooming Salons Need to Do

Australia's rules on card surcharges are changing. After a review of card payment costs, the Reserve Bank of Australia decided that from 1 October 2026, businesses can no longer add a surcharge to payments made on eftpos, Mastercard and Visa cards. For grooming salons and mobile groomers who currently add a percentage at the counter, this means a few changes to pricing, signs and booking terms. Here's what to know and what to do.

What is changing

From 1 October 2026, surcharges on eftpos, Mastercard and Visa payments are banned. That covers debit, credit and prepaid cards on those networks, whether the client taps, inserts a card or pays with a phone wallet. The RBA also announced lower caps on some of the fees banks charge behind the scenes, which are intended to reduce what businesses pay to accept cards over time.

Rules for other card types may differ, so check the current guidance from the RBA and your payment provider if you accept them.

Why it matters for groomers

Many small businesses added a surcharge, often around 1% to 2%, to cover card fees. After 1 October, that surcharge has to go for eftpos, Mastercard and Visa. If you do nothing, your card fees come straight out of your margin. The answer for most salons is to build card costs into their prices, so everyone pays the same price whichever way they pay.

Step 1: turn off surcharges

Check your card terminal, your booking software and any online payment settings for surcharges, and turn them off for eftpos, Mastercard and Visa before 1 October. Ask your payment provider if you're not sure where the setting is.

Step 2: review your prices

Work out what card payments cost you each month as a share of your takings. If card fees are about 2% of takings, a small, careful price adjustment can cover them. Many salons combine this with their regular yearly price review so clients see one change rather than two. Our guide to pricing grooming services can help.

Step 3: update signs and terms

Remove surcharge notices from the counter, the van, your booking page, invoices and terms and conditions. Make sure the prices clients see online are the prices they pay at checkout.

Step 4: tell your team

Staff should know the change is happening and what to say if a client asks: "Card surcharges have been removed across Australia, so the price you see is the price you pay." Simple and positive.

Step 5: check your payment costs

This is a good moment to review what you pay to accept cards, including any monthly terminal fees. With PetConnect, there's no monthly fee and card payments cost about 2.2%, with the exact rate confirmed at sign-up. Approved businesses get a free card terminal and payments settle the same day.

Will clients notice?

Most clients will welcome the end of surcharges. If you adjust prices slightly, explain it in your usual price update message. Clients generally prefer one clear price to a lower price with a fee added at the end.

What about cash?

Some businesses encourage cash payments to avoid card fees. That's your choice, but most clients prefer to pay by card, and handling cash takes time and has its own risks. A single price for everyone keeps things simple.

Keep an eye on updates

Payment rules can be updated, and providers will roll out changes over time. Check the RBA's website and your payment provider's notices for the latest information, and speak to your accountant if you're unsure how the change affects your business.

The bottom line

From 1 October 2026, the price on your list should be the price at your counter for eftpos, Mastercard and Visa. Turn off surcharges, review your prices, update your signs and tell your team. A few hours of preparation now avoids confusion later.

What about the fees banks charge?

Alongside the surcharge ban, the RBA is lowering some of the interchange fees that card issuers receive on each payment. From 1 October 2026, the cap on consumer credit card interchange falls from 0.8% to 0.3%, and the cap on debit cards falls from 0.2% to 0.16%. These fees are only one part of what businesses pay to accept cards, and how much of the saving reaches each business depends on its payment provider and plan. It's a good reason to ask your provider what your fees will be after 1 October.

Mobile groomers

If you take payments on the road, check your mobile terminal and any payment links too. Surcharge settings sometimes live in more than one place, and it's easy to remove them from the counter terminal but forget the one in the van.

See how PetConnect payments work on our billing and invoicing page, or compare costs on our pricing page.