The Australian payments landscape is undergoing a major transformation, with the Reserve Bank of Australia (RBA) confirming that card payment surcharges on Visa, Mastercard and eftpos transactions will effectively be abolished from 1 October 2026. For the car wash industry — where unattended tap-and-go payments are now standard — the changes will have a significant operational and pricing impact.
Under the reforms, businesses will no longer be permitted to add separate surcharges to most card payments. At the same time, the RBA is reducing interchange fee caps and increasing pricing transparency requirements for payment providers. The aim is to lower payment costs for businesses while improving transparency for consumers.
For car wash operators, particularly express tunnels, in-bay automatics and self-serve sites, this means merchant fees will need to be absorbed into standard pricing structures rather than recovered separately at the point of sale.
The immediate impact will likely be slight upward pressure on advertised wash prices as operators adjust to incorporate payment costs. However, the removal of surcharges also presents several strategic opportunities.
One of the most important steps operators should take is to review and renegotiate merchant service agreements. The reforms are expected to increase competition between payment providers, creating opportunities for operators to secure lower transaction fees, particularly for multi-site businesses with high transaction volumes.
The changes also support a broader industry shift toward simpler, more transparent pricing. Consumers increasingly expect fast, frictionless tap-and-go payments without hidden fees. Operators can leverage this by promoting “all-inclusive pricing” and “no card surcharges” as customer-friendly benefits that improve trust and convenience.
Membership and subscription programs are also likely to become even more valuable in a surcharge-free environment. Recurring billing models improve revenue predictability, increase customer retention and reduce friction at the point of sale. For many operators, unlimited wash memberships may become an even more important component of long-term profitability.
Rather than simply increasing prices to recover costs, operators should also consider re-engineering wash packages to enhance perceived value. Bundling additional services such as tyre shine, vacuum access or premium chemicals into higher-priced packages may prove more effective than transparent fee recovery.
The reforms should also prompt operators to review their payment technology. Businesses investing in new POS or unattended payment systems should prioritise platforms that support mobile wallets, loyalty programs, subscription management and real-time reporting.
While the abolition of card surcharges may create some short-term margin pressure, it also represents an opportunity for the car wash industry to modernise pricing, improve customer experience and strengthen long-term business performance. Operators who embrace transparent pricing, optimise payment costs and invest in technology are likely to be best positioned to benefit from the new payments environment.
