From Surcharges to Strategy
The Reserve Bank of Australia has moved to remove card surcharges, with changes expected to take effect from October 2026.
This applies to:
EFTPOS
Visa
Mastercard
From October, you won’t be able to add a surcharge at checkout - the displayed price must be the final price.
The Exception (For Now): Amex
American Express is currently outside the scope of these changes.
It operates under a different model
It isn’t regulated the same way as Visa/Mastercard
What that means: Amex surcharges likely still allowed…for now
This is under review - don’t build a long-term strategy around it.
BNPL Is Already a Margin Problem
Buy Now Pay Later providers like Afterpay & Zip typically charge merchants 3% - 6% per transaction, and importantly: You generally cannot pass these fees on to customers (contractually restricted). So nothing changes here, you’re already absorbing it.
Whilst you can’t charge extra for BNPL, but you may be able to control when it’s offered such as only making it available on purchases over a certain amount (e.g. $500+) or restricting it to certain products and services where you know you have the margin to absorb those fees. This is subject to your provider’s terms but allows you to reserve higher-fee payment methods for larger, higher-margin transactions where they make commercial sense.
Let’s Be Clear: The Cost Doesn’t Disappear
Removing surcharges doesn’t remove fees.
Banks and payment platforms still charge
Businesses still pay
The cost simply gets built into pricing
Expect, ~1–2% upward pressure on prices and margin compression if you don’t act.
The Smart Move: Shift From Surcharging to Incentivising
You can’t add a fee at checkout but you what’s you can do is;
· Offer discounts for lower-cost payment methods.
This is supported by:
RBA surcharge rules (which only restrict adding fees)
Australian Consumer Law (which allows flexible pricing if it’s clear and not misleading)
Example in practice;
· “Standard price: $100”
“2% discount for PayID / bank transfer or cash”
This works because:
You’re not adding a surcharge
You’re offering a conditional discount
The pricing is transparent
Practical Guardrails (Don’t Get This Wrong)
If you implement this:
Your “standard price” must be genuine (not artificially inflated)
Discounts must be clearly disclosed upfront
Customers must not be surprised at payment
Apply it consistently
The Real Options (That Actually Move the Needle)
1. Use a blended-rate provider
Some providers bundle Amex into a single flat rate, which can reduce the sting:
· Some providers offer as low as 1.4% flat rate including Amex, or “single rate” terminals where Amex is included the same rate as other cards
2. Split your payment stack
Instead of one provider for everything, consider where possible:
EFTPOS terminal for cheapest routing (debit focus)
+
Online gateway for flexible pricing / invoicing
+
Bank transfer (PayID) - near zero cost
Route each payment type through the cheapest rail instead of accepting one blended cost across everything.
3. Offload card acceptance entirely (very practical for invoicing businesses)
Services such as B2Bpay
Customer pays via card
You receive bank transfer
Lower fees (~1.3–2.2%)
You don’t operate the gateway, the customer chooses to pay by card (and wears the experience), You keep cleaner margins.
4. Use direct debit for repeat payments
Provioders like Go Cardless often lower cost than cards and automated collection
Ideal for: Service businesses, Recurring clients, Instalment plans (instead of BNPL)
TLDR;
Surcharges are being removed
Fees are not
Amex is the current exception (but under review)
BNPL is already eating margin
So the question is simple: Do you absorb the cost, or design around it?
The businesses that win will:
Take control of how they get paid
Nudge customer behaviour
Protect margin early
What You Should Do Now
DOWNLOAD THIS CHECKLIST [Members Only] WHICH COVERS:
Adjusting pricing
Reorganising payment methods
Incentives
Changing Payment Providers
Further advice?
Speak to us: members@businessvictorharbor.com.au