For years, surcharging has been allowed, but tightly regulated. Businesses could only pass on what it actually cost them to accept a card, and only if there was a clear alternative payment method. The ACCC has been actively enforcing those rules, particularly around excessive surcharges and misleading pricing.
The RBA’s view is that surcharging no longer works as intended. Cash is used less, card payments are unavoidable, and surcharges have increasingly become a point of frustration rather than a tool for transparency. At the same time, the reform package aims to reduce the underlying cost of accepting cards, with the RBA estimating a reduction of around $910 million per year in merchant payment costs.
But for operators, the headline remains the same.
And that is where the real challenge begins.
Because for years, the industry has treated card fees as something external to pricing. Something that could sit on top of the guest bill and be dealt with at the final step. That separation is disappearing.
Payment costs are now firmly back where they arguably always belonged, inside your core pricing model.
And that is not just an operational tweak. It is a structural shift.
Many operators do not fully control their pricing in the way they think they do. Between brand standards, OTA parity pressures, and owner expectations, pricing is often negotiated rather than engineered.
Which means this change forces a different conversation.
Operators should be getting ahead of this now. That means revisiting management agreements, budgets, and owner reporting assumptions. It means clearly identifying the cost of card acceptance and formalising how it is treated.
For many, the most practical step will be issuing an updated schedule of fees or an addendum that incorporates a credit card processing component within the overall cost base.
As Vanessa from Quartz Legal explains, “We’re advising accommodation operators to formalise payment costs through an updated schedule of fees or addendum. If it’s not clearly documented and agreed with owners, you run the risk of margin erosion or disputes later. This change is less about compliance and more about alignment.”
From there, it becomes a pricing exercise.
Revenue managers will need to account for this shift in rate strategy. Whether that is a marginal uplift in ADR, adjustments across segments, or changes to inclusions, the goal is straightforward. Recover the cost without damaging competitiveness.
Simply adding a flat percentage across all rates ignores how pricing actually behaves in market. Some segments will absorb increases. Others will not. The operators who handle this well will be the ones who integrate payment costs thoughtfully into their yield strategy, not just spread them evenly.
In a world without surcharges, inefficiencies in your payment setup become more visible. Multiple providers, inconsistent routing, unclear reconciliation, and hidden fees all start to matter more.
This is not about shopping around for the cheapest rate. It is about having a payment and property management setup that is consistent, transparent, and aligned with how your business operates day to day.
Because complexity is where margin quietly disappears.
It is also worth noting that not everything changes overnight.
The current surcharge rules still apply until October 2026. Businesses must not charge more than their cost of acceptance, and if there is no surcharge-free option, the minimum surcharge must already be included in the displayed price. Regulators have also made it clear that relabelling a surcharge as a “service fee” or “processing fee” will not avoid scrutiny if it operates in the same way.
And that is where this reform becomes more than compliance.
Accommodation businesses do not just compete on product anymore. They compete on perceived fairness. Guests compare across channels instantly. They notice inconsistencies. They remember surprises. And they reward operators who feel transparent.
Removing the surcharge is not just about losing a revenue lever. It is an opportunity to simplify the buying experience. A price that is the price. No last-step additions.
So yes, the surcharge is going away.
Payment costs are no longer something you can deal with at the end of the transaction. They have to be built into the business from the start.
That means:
✔ Better alignment with owners.
✔ Stronger collaboration with revenue teams.
✔ And a more deliberate approach to pricing strategy.
Handled properly, this does not have to be a margin hit.
Handled poorly, it will be.
This column reflects general industry commentary only and does not constitute legal advice. Operators should seek independent legal and financial guidance when reviewing their pricing structures and agreements.
