Australian retailers can no longer add a separate fee when customers pay by card on eftpos, Visa, Mastercard, American Express and UnionPay. All have dropped surcharging. PayPal follows suit on 5 October. Other cards, such as Diners Club, may depend on your EFTPOS provider.
As a quick note, most of us have read this ruling by the ATO, and I thought it sucked. Where is all this saving on the interchange fee that was supposed to be paid for the transaction the government claimed?
Quick Summary: Can I Still Charge Card Fees?
- No. You can't add a fee just because a customer pays by card, whether in-store, online or in-app.
- Yes to genuine booking, service, delivery and weekend or public holiday fees, provided they aren't a disguised card surcharge.
- Yes to cash or PayID discounts.
- Yes to minimum card spends, if disclosed upfront — and you cannot charge a fee for falling short.
- Yes to refusing credit cards or specific brands if disclosed before purchase.
- Single-price rule: the advertised price must be the total mandatory price.
What the Card Surcharge Ban Actually Covers
Banned vs. Still Allowed Fees
Any surcharge applied because the customer used a covered card type (credit, debit or prepaid), whether in-store, online or in-app.
Fees unrelated to the card, such as booking, platform fees, service and delivery fees, and weekend or public holiday surcharges.
5 Legal Ways SMBs Can Protect Their Margins
You still pay processing fees. You just can't itemise them as a card surcharge.
- Bake your costs into your prices.
- Offer cash or PayID discounts. You may offer something like "1.5% off for cash".
- Set minimum card spends, disclosed upfront. You can decline a transaction under the minimum. You can't charge a fee for being under it.
- Refuse cards or specific brands. You can decline credit cards entirely while accepting other schemes, as long as customers are told before purchase.
- Ensure platform and ordering fees are handled correctly.
- Obtain advice from the third-party service before doing so. A genuine platform fee is for online ordering, click-and-collect, QR ordering or a booking tool.
- The fee must be for the service.
- It should apply regardless of payment method.
- If it is mandatory and can be calculated in advance, it must be shown upfront.
Who Is Watching? (ACCC and Card Networks)
Some card networks and payment providers have stated they will be enforcing the no-surcharge rules. That includes eftpos, Visa and Mastercard, as well as providers like Stripe, Square, Tyro and the banks.
A Practical Playbook
- Model your price lift.
- Clear signage. If you have a minimum card spend, ensure clear signage.
- Review platform fees. Please ensure that the fees are service-based and disclosed upfront.
Common Pitfalls to Avoid
- Adding a "merchant fee" or "processing fee" for card payments.
- Hidden mandatory fees on the final screen.
- Assuming the ban removes your costs.
Bottom Line
The ban is real and in force and operates partly through card-network rules not just a simple ACCC prohibition.
Written by:
Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.
