From 1 October 2026, Australian businesses will no longer be able to add surcharges for debit, credit or prepaid card payments.
For customers, this will feel like welcome news. No one enjoys seeing an extra fee added at the checkout.
For business owners, however, the cost of accepting card payments does not disappear. It becomes another operating expense that must be absorbed, managed or built into pricing.
At The Hrkac Group, we are already speaking with clients about what this change means for pricing, profitability and cash flow, particularly for businesses where most customers choose to pay by card.
Currently, many businesses pass on the merchant fee charged by their payment provider.
From 1 October 2026, these surcharges will no longer be permitted for EFTPOS, debit card, credit card and prepaid card transactions.
The cost of processing those payments remains however, so instead, it becomes another business expense.
Recent announcements have referred to card surcharges as “hidden fees”. For many small businesses, that description is frustrating.
In reality, many businesses have displayed card surcharges clearly for years. Customers were given the choice of paying by cash or card, and those choosing card simply paid the cost charged by the payment provider.
This change doesn’t remove merchant fees. It simply changes who pays them.
Ultimately, the cost of electronic payments still needs to be funded.
If your business processes hundreds or thousands of card transactions each month, merchant fees can add up quickly.
Although each transaction may only cost around 1% to 2%, the annual impact can be significant. Depending on turnover and payment volumes, this could represent thousands, or even tens of thousands, of dollars in additional expenses.
Businesses with lower profit margins may find they need to:
For many businesses, modest price increases across products or services may become necessary to maintain profitability.
If you are considering increasing prices to cover merchant fees, use this as an opportunity to review the bigger picture.
Ask yourself:
The cheapest payment provider isn’t always the best option.
Some systems provide valuable features such as customer management, reporting, automation and business integrations that may justify a slightly higher processing fee. The key is understanding the total value, rather than simply chasing the lowest percentage.
Another area worth reviewing is how payments are collected.
For example, businesses that split customer payments into deposits and final balances may unintentionally pay multiple transaction fees on the same sale, depending on their payment provider’s fee structure. Across hundreds of transactions each year, these costs can become significant.
Small adjustments to your payment processes can often improve profitability without affecting the customer experience.
This legislative change is a timely reminder that operating costs continue to evolve.
Rather than reacting once October arrives, now is an ideal time to review:
Planning ahead gives you more options and helps avoid rushed decisions later.
Whether you are a sole trader, growing business or established company, understanding the financial impact of these changes is essential.
Our team can help you assess how the removal of card surcharges may affect your business, review your pricing strategy, forecast cash flow and identify practical ways to protect profitability.
If you would like to discuss how these changes could impact your business, contact The Hrkac Group today. Together, we can help you plan ahead with confidence.
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