Card payment pricing models compared
Flat rate, blended, cost-plus, tiered and subscription pricing for Australian merchants, side by side on how they work, who they tend to fit and what to watch.
Providers package the same underlying costs (interchange, scheme fees and their own margin) in different ways. This table compares the pricing models and provider types, not individual providers. Which model is cheapest depends on your own card mix, average sale and monthly volume, so run each quote through your own statement with the card fee calculator or the monthly cost estimator.
Select a column header to sort.
| 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. |
| Subscription or membership | A fixed monthly fee plus a low per-transaction margin over cost. | Higher-volume businesses where the fixed fee is spread over many payments. | Fixed fee is paid even in quiet months; check the minimum term and exit terms. |
| Payment facilitator (aggregator) | You sign up with a provider that holds the acquiring relationship and onboards you as a sub-merchant, usually with flat-rate pricing. | Fast set-up, mobile and online sellers, seasonal businesses. | Funds can be held under risk rules; account can be closed at short notice under the terms. |
| Direct bank or acquirer facility | Your business holds a merchant facility directly with an acquirer, often linked to its business bank account. | Businesses wanting negotiated rates, same-bank settlement and relationship support. | Longer contracts, terminal rental, application and credit checks; compare against at least one other offer. |
| Online gateway plus acquirer | A gateway handles the online checkout and tokens; an acquirer processes the card payment. Sometimes sold as one package. | Online stores, subscriptions and invoicing. | Two sets of fees (gateway and acquiring), fraud screening and 3-D Secure costs, card-not-present rates. |
Model names vary between providers; read the fee schedule, not the label. Since 1 October 2026, surcharges cannot be added to payments on eftpos, Mastercard or Visa cards, and American Express, UnionPay and PayPal have also removed surcharging, according to the Reserve Bank of Australia's FAQs. Interchange caps on domestic cards fell on the same date, and a 1.0% cap on foreign-issued cards applies from 1 April 2027. Check the Reserve Bank of Australia for the current rules, your provider's current fee schedule for prices, and the Australian Small Business and Family Enterprise Ombudsman for small business guidance.