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.
A merchant payment processing fee is what your business pays each time a customer pays by card. In Australia it is made up of three layers: interchange, paid by your provider to the customer's card-issuing bank and capped by the Reserve Bank of Australia (RBA); scheme fees, charged by the card network such as eftpos, Mastercard or Visa; and the acquirer or provider margin, which covers processing, terminals, settlement, support and profit. Your provider may show these separately (cost-plus pricing) or roll them into one rate (flat or blended pricing). Two things changed on 1 October 2026: you can no longer add a surcharge to payments on eftpos, Mastercard or Visa cards, and the caps on domestic interchange fell. That makes the fee itself, not a surcharge, the number to manage.
This overview links to every guide in this section. Rates and dollar amounts below are illustrative, not any provider's current price.
The three layers of a card fee
| Layer | Who receives it | Who sets it | What changed in 2026 |
|---|---|---|---|
| Interchange | The cardholder's bank (issuer) | Card network, within RBA caps | Lower caps on domestic debit, prepaid and consumer credit cards from 1 October 2026; foreign-card cap from 1 April 2027 |
| Scheme (network) fees | eftpos, Mastercard, Visa and others | Each network | Not capped; networks expected to publish scheme fee roadmaps by 1 April 2027 |
| Acquirer or provider margin | Your bank, acquirer or payment facilitator | Competition and your contract | New publication and statement requirements for acquirers |
The RBA's Conclusions Paper of March 2026 reports that, in 2024/25, acquirers' net scheme fees averaged about 10.5 basis points (0.105%) of transaction value and made up about 17.8% of merchant service fees. Interchange and margin made up the rest. Read the detailed breakdown of interchange, scheme fees and margin.
Why two businesses pay different rates for the same card
The same tap of the same card can cost two businesses very different amounts. The main reasons:
- Card type. Domestic debit cards have the lowest interchange cap (8 cents or 0.16% from 1 October 2026). Consumer credit cards are capped at 0.3%, commercial credit at 0.8%, and foreign-issued cards were uncapped until the 1.0% cap starts on 1 April 2027.
- Channel. Online and keyed (card-not-present) payments often carry higher interchange, scheme and fraud costs than in-person payments.
- Size of business. The RBA found that small merchants pay more than large "strategic" merchants that negotiate lower interchange categories. For debit, the gap was about 0.13 percentage points per transaction.
- Pricing model and margin. A flat rate includes a margin that may be large on cheap debit payments and thin on expensive credit or foreign payments.
- Routing. Dual-network debit cards can be routed through eftpos or Mastercard/Visa. With least-cost routing, the cheaper network can be chosen for contactless payments.
- Average sale. Fixed cents per transaction make small sales relatively expensive. See card fees on small sales.
Pricing models in one table
| Model | What you see | Usually fits |
|---|---|---|
| Flat rate | One percentage on all cards | Low volume, wants simplicity |
| Blended | One negotiated rate, sometimes debit and credit separately | Steady volume, negotiates |
| Cost-plus | Interchange + scheme fees passed through, plus margin | Medium to large volume, debit-heavy |
| Subscription | Monthly fee + low margin over cost | High volume |
The pricing models guide compares them on a worked example, and the comparison page lists provider types side by side.
The 2026 rule changes at a glance
The RBA's Payments System Board published its conclusions from the Review of Merchant Card Payment Costs and Surcharging on 31 March 2026. The main dates:
| Date | What applies |
|---|---|
| 1 October 2026 | RBA prohibition on "no-surcharge" rules lifted; eftpos, Mastercard and Visa prohibit surcharging on debit, prepaid and credit cards. Lower domestic interchange caps. New merchant statement rules take effect, with a transition until 31 March 2027 |
| 30 October 2026 | First quarterly publication of card network fees and of large acquirers' average merchant fees, including for small merchants |
| 30 January 2027 | First publication of how large acquirers passed through interchange cuts |
| 1 April 2027 | 1.0% interchange cap on foreign-issued cards; full merchant statement requirements (first full statement period from this date); scheme fee roadmaps expected |
Details are in the guides on the end of surcharging, interchange caps and foreign cards and merchant statements and fee transparency.
A quick worked example
Illustrative only. A gift shop takes $25,000 a month by card in 500 transactions (average $50). It is on a flat rate of 1.5% with no per-transaction fee and $30 a month terminal rental.
- Transaction fees: $25,000 × 1.5% = $375
- Total monthly card cost: $375 + $30 = $405, an effective rate of 1.62%
- Yearly: $405 × 12 = $4,860
Before October 2026 the shop could have surcharged some of this; now the full $4,860 comes out of its margin. If a cost-plus quote averaged 0.9% plus 5 cents with the same rental, the monthly cost would be $225 + $25 + $30 = $280, saving $125 a month or $1,500 a year, before any exit fee. Test your own numbers with the card fee calculator.
Other costs on the statement
Beyond the transaction fee, check for:
- Terminal rental or purchase, and fees for paper rolls, replacements or repairs. See rent versus buy.
- Monthly account or minimum service fees, charged if your fees fall below a set amount.
- Gateway fees for online payments. See online gateway fees.
- Chargeback fees for each disputed payment.
- PCI DSS non-compliance fees if you do not complete your annual security self-assessment.
- Early termination fees in fixed-term agreements.
In this section
- Interchange, scheme fees and acquirer margin
- Flat rate vs blended vs cost-plus vs subscription pricing
- Card surcharges removed from 1 October 2026: what merchants must do
- Interchange caps from October 2026 and the foreign-card cap
- Least-cost routing and eftpos debit
- Merchant statements and fee transparency
- GST on merchant fees and terminals
Frequently asked questions
Is there a legal maximum merchant fee?
No. The RBA caps interchange, one part of the fee, on eftpos, Mastercard and Visa cards. Scheme fees and the provider's margin are not capped, so the total depends on your provider and plan.
Can I pass card fees on to customers another way?
You can build card costs into your general prices and you can offer discounts for particular payment methods. What you cannot do on eftpos, Mastercard or Visa cards from 1 October 2026 is add a card payment surcharge.
How often should I review my fees?
At least once a year, and whenever your volume, card mix or business model changes. A review now is worthwhile because interchange caps fell on 1 October 2026.
Does this apply to American Express?
American Express is not regulated by the RBA's interchange caps, but the RBA reports that it has removed surcharging on its cards. Its merchant fees are set by Amex or the provider that offers Amex acceptance.
Sources
- Reserve Bank of Australia — Review of Merchant Card Payment Costs and Surcharging, Conclusions Paper (31 March 2026, updated 19 June 2026) and FAQs
- Australian Small Business and Family Enterprise Ombudsman — guidance for small businesses on payment costs
- Australian Competition and Consumer Commission — price displays, payment methods and unfair contract terms
- business.gov.au — accepting payments and running a small business
