Fee building blocks, pricing models and 2026 rules
How a card payment fee is built, how providers package it, and the Reserve Bank changes to surcharging, interchange caps and fee transparency that apply from October 2026.
merchant payment processing fees
Merchant payment processing fees in Australia, worked out from your own statement
Understand what makes up the fee on every tap, insert and online payment, compare pricing models on your own numbers, and adjust to the end of card surcharging on eftpos, Mastercard and Visa from 1 October 2026.
- Every part of a card fee explained: interchange, scheme fees and the provider's margin
- Calculators for the fee on your takings, a monthly cost range, and terminal or switching payback
- Best-fit questions and a quote checklist instead of provider rankings
Explore by topic
Worked costings and choosing a provider
Step-by-step fee calculations on real-looking numbers, terminal rent-or-buy maths, online gateway costs, repricing after surcharges ended, and a best-fit method for comparing quotes.
Costly mistakes, disputes and official sources
Common ways businesses overpay or get caught out, chargebacks, PCI DSS, settlement delays, merchant agreements and exit fees, and where to complain or check the rules.
Start here
Fee building blocks, pricing models and 2026 rules
Flat rate vs blended vs cost-plus vs subscription: card pricing models compared
How each merchant pricing model works in Australia, a side-by-side worked example at two business sizes, and how to tell which model fits your card mix.
Worked costings and choosing a provider
How to choose a payment provider for a small business: a best-fit method
A step-by-step way to find the best-fit card payment provider for an Australian small business, using your own statements, card mix, equipment needs and contract terms instead of rankings.
Fee building blocks, pricing models and 2026 rules
Merchant payment processing fees in Australia: what you pay, why, and the 2026 rules
How Australian merchant fees are built from interchange, scheme fees and provider margin, how plans package them, and what changed on 1 October 2026.
Worked costings and choosing a provider
Monthly card processing cost: a worked example for a small bakery
A line-by-line costing of one month of card payments for an illustrative Australian bakery under flat-rate, blended and cost-plus pricing, with the arithmetic shown.
Costly mistakes, disputes and official sources
Card payment mistakes that cost small businesses money, and how to avoid them
The common patterns behind overpaying for card payments in Australia: outdated plans, unreviewed fees, long contracts, chargebacks, security lapses and cash-flow gaps, with fixes for each.
Fee building blocks, pricing models and 2026 rules
Card surcharges removed from 1 October 2026: what Australian merchants must do
The RBA decision that ended surcharges on eftpos, Mastercard and Visa cards, who enforces it, what fees are still allowed, and a step-by-step plan for businesses that used to surcharge.
Tools
Card fee and net takings calculator
Work out what your card payments cost in a month: a percentage of takings plus fixed cents per transaction and monthly fees, and what you keep after fees.
Monthly card processing cost estimator
Get a low–high range for a month of card fees from your card takings and an illustrative cost band for the type of pricing plan, plus fixed monthly fees.
Terminal purchase and provider switch payback calculator
See how quickly a one-off cost, such as buying terminals instead of renting them or paying an exit fee to move to a cheaper plan, is recovered by the yearly saving.
Merchant quote comparison checklist
Questions to answer for every payment provider quote before you sign, grouped by pricing, card mix, equipment, contract, settlement and security.
Card payment pricing models compared
| Model | How it works | Often fits | Watch out for |
|---|---|---|---|
| Flat rate | One percentage on every card, sometimes different for online or keyed payments. Provider keeps the difference between the rate and its underlying cost. | New or low-volume businesses that want simple, predictable pricing and few fixed fees. | Debit-heavy businesses can pay well above underlying cost; check whether the rate fell after interchange caps were lowered on 1 October 2026. |
| Blended single rate | A bank or acquirer quotes one rate (or one for debit and one for credit) negotiated for your business. | Established businesses with steady volume that want simplicity but can negotiate. | Rate may not move when interchange falls; monthly fees and minimums can sit on top. |
| Cost-plus / interchange-plus | Actual interchange and scheme fees are passed through, plus a stated margin (percentage, cents or both). | Medium and larger volumes, or businesses with many debit transactions. | Statements are longer; margin and extra scheme pass-through items must be checked line by line. |
| Tiered (qualified / non-qualified) | Transactions are sorted into price tiers by card type or channel, each with its own rate. | Rarely the clearest choice; sometimes offered as an alternative to blended pricing. | Hard to predict which tier a payment falls into; compare on a full month of your own transactions. |
Frequently asked questions
Can I still add a card surcharge in Australia?
Not on eftpos, Mastercard or Visa debit, prepaid or credit cards from 1 October 2026. The Reserve Bank lifted its prohibition on no-surcharge rules and those networks now prohibit surcharging, including on overseas-issued cards. American Express, UnionPay and PayPal have also removed surcharging. Weekend, public holiday, booking and service fees are separate pricing decisions and are not card surcharges, but they must still be displayed clearly under the Australian Consumer Law.
What is a typical merchant fee in Australia?
It depends on your card mix, average sale, volume and pricing model, so this site does not quote a typical market rate. From 1 October 2026 the interchange part is capped at 8 cents or 0.16% for domestic debit and prepaid cards and 0.3% for domestic consumer credit cards, and scheme fees and the provider's margin sit on top. Large acquirers must publish average fees for small merchants each quarter, with the first figures due by 30 October 2026.
Is flat-rate pricing or cost-plus cheaper?
Neither is always cheaper. Flat rate is simple but can cost more for debit-heavy businesses; cost-plus passes through actual interchange and scheme fees plus a margin and often suits higher volumes. Run a month of your own transactions through both quotes using the card fee calculator.
What is least-cost routing?
Most Australian debit cards carry two networks: eftpos and either Mastercard or Visa. Least-cost routing lets your provider send contactless debit payments through whichever network is cheaper for you. The Reserve Bank expects acquirers to offer and promote it but has not made it mandatory, so ask your provider whether it is switched on.
Should I rent or buy an EFTPOS terminal?
Renting spreads the cost and often includes replacement, but the rental continues for as long as you keep the terminal. Buying has a higher upfront cost but no monthly rental. Use the terminal and switching payback calculator with your actual rental, purchase price and any exit fee.
Do merchant fees include GST?
Check your tax invoice or statement. Many providers state that their merchant fees and terminal rental include or attract GST unless the tax invoice says otherwise, and GST-registered businesses can generally claim credits only for GST shown on a valid tax invoice. Ask the ATO or your tax adviser if the treatment is unclear.
Who do I complain to about my payment provider?
Start with the provider's internal complaints process. If it is a member of the Australian Financial Complaints Authority, small businesses can take unresolved disputes there free of charge. The ACCC deals with misleading conduct and unfair contract terms, and the Australian Small Business and Family Enterprise Ombudsman and state small business commissioners can help with disputes.
Are interchange cuts automatically passed on to me?
Not necessarily. On cost-plus pricing they flow through by design; on flat-rate or blended pricing it depends on the provider. Large acquirers must publish an interchange pass-through measure, the first due by 30 January 2027. Ask your provider in writing what happened to your rates after 1 October 2026.
How this site is made
Cost of Acceptance is an independent information project. Guides are drafted with the help of AI writing tools and checked against official and primary sources before publication; see our Editorial Policy. We are not affiliated with any provider mentioned on the site and do not sell products or services.