By now you’ll be aware that card surcharges on eftpos, Visa and Mastercard are being banned by the RBA from 1 October 2026. For franchise networks, the compliance task goes well beyond updating a POS system. Franchise agreements, disclosure documents, operations manuals and pricing guidance all need attention — and the window to act is closing.
For a full overview of the reform, the enforcement framework and what it means for all businesses, read our main article: RBA Card Surcharge Ban: What businesses need to know
Why this matters differently for franchise networks
Individual businesses need to adjust their pricing and payment arrangements. Franchise networks need to do all of that — plus manage the downstream impact across every franchisee, while navigating the legal risks that come with network-wide pricing guidance.
For franchisors: what needs to be reviewed
Franchise agreements and operations manuals
Review your franchise documents for any provisions that:
- Permit, regulate or mandate surcharging practices
- Reference specific payment methods, POS systems or payment service providers
- Address pricing or revenue obligations where surcharge income has been a component
- Include financial modelling or franchisee investment return projections that assumed surcharge revenue
Operations manuals, training materials and franchisee communications that reference surcharging should also be updated before 1 October.
Franchise disclosure documents
Changes to payment costs, pricing models or franchisee financial performance may affect the accuracy of your current franchise disclosure document (DD). Consider whether:
- Financial representations to prospective franchisees require updating
- Statements on operating costs or revenue assumptions are affected by the removal of surcharge income
- Any income or earnings claims need to be revised
Required updates can potentially be aligned with the 2026 annual disclosure update — but only if you start now. Early review is critical to ensure there is sufficient lead time before 1 October.
Pricing consistency and competition law
The removal of surcharges may create pricing inconsistencies across your network, particularly where some franchisees have been surcharging and others have not. Before issuing any pricing guidance to the network, franchisors should be alert to the risks under the Competition and Consumer Act 2010 (Cth). The line between network consistency guidance and price fixing requires careful legal navigation.
Franchisors should seek specific competition law advice before issuing pricing-related communications or directions to the network.
For franchisees: what to do before October
- Check your franchise agreement for any provisions referencing surcharging or payment methods
- Review your payment provider contract — lower interchange caps may reduce your costs, but only if your contract passes the savings through
- Update your POS system and checkout flow to remove surcharge functionality (acquirers are being directed to do this, but verify with your provider)
- Review all pricing displays, menus and e-commerce checkout pages for upfront pricing compliance
- If your financial model assumed surcharge income, update your projections
The broader reform picture
The surcharge ban is part of a wider package. Two changes take effect 1 October 2026:
- Surcharge ban on eftpos, Visa and Mastercard
- Reduced interchange fee caps (consumer credit cards drop from 0.8% to 0.3%; debit from 0.2% to 0.16%)
A second tranche commences 1 April 2027, introducing a 1% cap on interchange fees for foreign-issued cards. American Express, BNPL services and Diners Club are not covered by the October ban.
One underappreciated consequence: credit card rewards programs are expected to be cut back as banks respond to reduced interchange revenue. If your network relies on corporate rewards cards for travel or expenditure, review those arrangements now.
How MST Lawyers can help
Our franchise and commercial law team can assist franchisors and franchisees with:
- Reviewing and updating franchise agreements and disclosure documents
- Advising on competition and consumer law risks related to network pricing guidance
- Assessing payment provider agreements and renegotiation strategy
- Reviewing operations manuals and franchisee-facing materials for compliance
- Supporting franchisees with pricing and commercial strategy from a legal perspective
The 1 October deadline is firm. If you have not yet reviewed your franchise documents, now is the time.
Reviewed by Raynia Theodore, Principal, MST Lawyers.
This article is intended to provide general information only and does not constitute legal advice. The legal and regulatory position is subject to ongoing legislative and regulatory developments. You should obtain specific legal advice relevant to your circumstances before acting on any of the information contained in this article. MST Legal Pty Ltd trading as MST Lawyers ABN 49 417 397 084. Liability limited by a scheme approved under Professional Standards Legislation.
