Card Surcharge Ban: Why Cash Discounts Are Back
The short version
- The card surcharge ban started on 1 October 2026. It covers debit, credit and prepaid card payments.
- Businesses now carry the cost of card payments. Cash payments carry no card fees for the customer or the business.
- More businesses are offering a cash discount, and 9 News covered the trend on 19 October 2026.
- A cash discount only works if customers can get cash easily. An ATM on site solves that.
What the card surcharge ban means for your business
The Reserve Bank of Australia announced the change on 31 March 2026, and eftpos, Mastercard and Visa all adopted no-surcharge rules from 1 October 2026. Since then, Australian businesses can no longer add a surcharge to debit, credit or prepaid card payments.
The fees for taking cards haven’t gone away. Before the surcharge ban, a business could pass them on at the counter. Now they come out of your margin on every card sale.
Why more businesses are offering a cash discount
A surcharge charged customers extra for paying by card. A cash discount rewards them for paying with notes instead. 9 News reports that a growing number of Australian businesses are now offering one.
It isn’t a new idea. IGA Richmond in Tasmania has given cash-paying shoppers 5% off since the end of the pandemic, and its owner says older customers in particular like it.
For the business, a cash sale has no card fee and no chargeback risk, and the money is in the till straight away.
Cash acceptance is protected for essentials
From 1 January 2026, most supermarket and fuel retailers in Australia are required to accept cash for eligible in-person transactions. The rules cover purchases of $500 or less between 7am and 9pm. Businesses with turnover under $10 million are exempt, unless they trade under a larger retailer’s brand. The rules run for three years before a government review.
Where do your customers get cash now?
Customers still want cash, but banks are removing branches and ATMs.
Bank branches in Australia, June 2025 compared with June 2020. Down by a third.
Bank-owned ATMs over the same five years. Down by almost half.
Demand hasn’t gone with them. The RBA’s 2025 Consumer Payments Survey found about half of Australians use cash in a typical week, and around 1.5 million adults rely mainly on cash.
How an ATM makes a cash discount work
A cash discount only pays off if customers can get cash where they’re about to spend it. An ATM in your venue makes your site the place people come to for cash.
- Customers withdraw and spend on the spot, so the discount actually gets used.
- More cash sales means fewer card fees coming out of your margin.
- Contactless and tap-ready. Customers tap a card or phone, then enter their PIN, on a large 15-inch touchscreen.
- Your brand on the screen. Custom screen graphics and on-screen advertising for your own promotions.
- Managed for you. Installation, cash logistics, real-time fault alerts, reconciliation and national field service, with your ATMs visible in the Dash web portal.
- Deposit your takings on site. For qualifying businesses, a deposit-taking ATM takes your daily takings with same-day settlement, so there’s no trip to a branch. Subject to approval.
See the full range of options for an ATM for your business, or the deposit ATM for high-cash venues.
Three ways to get an ATM
Buy or lease
Low-cost tiered pricing. You control the ATM and set your own fees.
Partnership
A managed solution with a revenue share. We look after the machine.
Community ATM
A community comes together to fund one or more ATMs and the cash services to keep them running.
Before you offer a cash discount
Card surcharge ban FAQ
When did the card surcharge ban start?
1 October 2026. From that date, Australian businesses can’t add a surcharge to debit, credit or prepaid card payments under Reserve Bank of Australia rules.
Can my business still offer a discount for cash?
The ban stops surcharges on card payments. A number of Australian businesses now offer a discount for paying cash instead. Check with your adviser on how you display and record it.
Does the surcharge ban apply to ATM fees?
No. The ban covers surcharges merchants add to card payments at the point of sale. It does not apply to ATM surcharges, the fee shown on screen when a customer withdraws cash.
Do I have to accept cash?
From 1 January 2026, most supermarket and fuel retailers must accept cash for eligible in-person purchases. Businesses with turnover under $10 million are exempt unless they trade under a larger retailer’s brand.
How do I get an ATM for my venue?
You can buy or lease an ATM, take a managed partnership, or set up a community ATM. Call 1300 125 592 or use the Get started form and we’ll look at your site.
Dash ATM has built and managed ATM networks across Australia since 2002. Keep cash local.
Sources: 9 News Australia · Square: RBA card surcharging · CommBank: cash mandate rules · The Greek Herald: IGA Richmond · APRA ADI Points of Presence, June 2025 · RBA Consumer Payments Survey 2025