The RBA’s decision removed its prohibition on network no-surcharge rules. Visa, Mastercard and eftpos introduced those rules from 1 October 2026. American Express also removed surcharging, according to the RBA’s FAQ.
The 1 October government update confirms that payment processing costs remain. Check your provider’s terms and any applicable exceptions. This is general information, checked 31 October 2026. Seek legal advice for your circumstances.
Model contribution before changing prices
Exhibit 4
In this sample, a 1% price rise adds more than a lower card fee
Scenario
Sales
Effective card rate
Card fees
Contribution
Current model
100,000
1.5%
1,200
28,700
Lower fee
100,000
1.0%
800
29,100
Prices up 1%
101,000
1.5%
1,212
29,688
Both changes
101,000
1.0%
808
30,092
Illustrative monthly figures in A$, excluding GST. Fixed payment costs A$100 in every row; direct costs A$70,000; card share 80%. Contribution = sales less direct costs, card fees and fixed payment costs.
Illustrative figures, not client data.
Exhibit 5
The model counts payment costs and leaves out overheads, tax and lost sales
What it counts
Sales less direct costs and payment costs
Fixed payment costs of A$100 a month
What it assumes
Unchanged sales volume, direct costs and payment mix
Effective fee rates, not advertised merchant rates
What it leaves out
Other overheads, tax and financing
Surcharge revenue: none appears in any scenario
Lost sales: test them before treating a higher price as an improvement
Illustrative monthly figures in A$, excluding GST.
Illustrative figures, not client data.
These illustrative figures exclude GST. Effective fee rates divide fee expense by net card sales. They are assumptions, not advertised merchant rates.
The combined option adds A$1,392 monthly contribution in this sample. It assumes unchanged sales volume, direct costs and payment mix. It is not a forecast. Test lost sales before treating a higher price as an improvement.
Payment choice changes the answer
Exhibit 6
Moving card share from 80% to 60% cuts card fees by A$300
Illustrative monthly card fees; net sales A$100,000; effective card rate 1.5%. Other payment costs are excluded.
Show the figures
A$
80% card share
A$1,200
60% card share
A$900
Illustrative figures, not client data.
Exhibit 7
A cheaper payment method still needs four checks before it saves money
01
Add the collection costs
Add handling, reconciliation and collection costs to the card fee saving.
02
Quote like for like
Compare quotes for the same transaction mix, including fixed charges.
03
Hours are not cash
Keep staff hours separate from cash costs.
04
A discount cuts revenue
The RBA allows payment-method discounts, but a discount also reduces revenue. Model it first.
In this sample, moving card share from 80% to 60% reduces card fees by A$300. That saving excludes extra costs of collecting other payments.
The RBA allows payment-method discounts, subject to relevant requirements. A discount also reduces revenue. Model it before offering one.
The ACCC also says they must not mislead customers about the reasons for increases, and warns that renaming a card-linked charge does not avoid the network rules.
BankSA, card payment surcharges, which says the effect on your card costs depends on your pricing arrangement, provider and transaction mix. It suggests using your statement’s card acceptance cost summary when comparing providers.
What to do first
Exhibit 8
One owner should reconcile the decision to actual costs
01Finance lead: collect statements
Keep the merchant statement beside each assumption.
02Finance lead: model options
Record each option’s margin, quote expiry and approval.
03Owner: approve prices and methods
Decide the price change and the payment methods you will offer.
04Team: test every checkout
Check terminals, online checkout and invoices after any change.
A proposed ownership model, not a legal requirement. Operational checks are informed by NSW Small Business Commissioner guidance.
Name a finance lead. Keep the statement beside each assumption. Record quote expiry and approval. Review the model each quarter, or whenever your provider changes its pricing.
Check terminals, online checkout and invoices after making changes. NSW guidance recommends checking systems and customer information. Under ACCC guidance, displayed consumer prices must include taxes and unavoidable fees. The management figures above are not customer-facing prices.
Common questions
Can businesses increase prices after the changes?
The ACCC says businesses can include card acceptance costs in overall prices. They must not mislead customers about the reasons for increases.
Can a card surcharge become a service fee?
Renaming a card-linked charge does not avoid the network rules. The ACCC warns that disguising it may mislead customers.
Are public holiday surcharges affected?
The card changes do not remove genuine public holiday surcharges. Separate price-display requirements still apply.
Will lower interchange caps reduce my total bill?
Lower interchange caps are only part of the cost picture. Compare your statement and your provider’s offer, including fixed charges, before assuming a saving.
Chartered Accountant (CA ANZ) and finance executive, based in Canberra. Practical AI and automation for SMEs, and adviser to owners, CEOs and boards on integration and finance.
Unsure which payment costs are reducing your margin? My Diagnostic turns the numbers into clear priorities.
Renzo Demartini