Merchant fees after the surcharge ban: guide for accountants
Compayr Editorial · · 6 min
From 1 October 2026, Australian businesses can no longer surcharge eftpos, Mastercard or Visa payments. Card fees used to be passed to the customer at the counter. They are now an expense the business pays. For many small businesses, merchant fees are a new and growing line on the profit and loss.
This guide is for accountants and bookkeepers. It covers how to find what a client really pays, where the fees hide, and how to check whether the rate is competitive.
What changed on 1 October 2026?
Surcharges on eftpos, Mastercard and Visa debit and credit cards are banned Consumer credit interchange was cut to 0.3% Debit interchange is capped at 8 cents or 0.16% Large acquirers must publish their average merchant fees each quarter, from 30 October 2026
Businesses that surcharged now absorb the full cost. Businesses on “zero cost EFTPOS” plans are hit hardest. Those plans relied on a surcharge to cover the fee. With the surcharge gone, the business pays the full rate. Many will see this for the first time on their October statement.
How much do merchant fees vary?
Published in-person rates for small businesses vary by more than double. Rates checked 22 October 2026:
Provider Published in-person rate Westpac 0.79% ANZ Worldline 0.95% CommBank Smart 0.99% NAB 1.05% Tyro 1.3% SumUp 1.4% Zeller 1.4% Square 1.6%
A café taking $50,000 a month in cards pays $700 a month at 1.4%. At 0.79% plus $24.75 terminal rental, it pays $419.75. The difference is $280 a month, or $3,363 a year.
Rates change. The Pass Through Tracker shows current rates and which providers passed on the 1 October interchange cut.
How do you work out a client’s effective rate?
Divide the month’s card fees by the month’s card sales.
Example: $1,180 in fees on $72,000 of card sales is an effective rate of 1.64%.
Include every fee in the calculation:
Transaction fees Monthly account or service fees Terminal rental Minimum monthly fees Chargeback and refund fees
A low headline rate with high monthly fees can cost more than a slightly higher rate with none. How to read your merchant statement or payments bill explains each line.
Where do merchant fees hide in the books?
Providers collect fees in two ways.
Gross settlement with a monthly debit. The full sale amount is deposited. Fees are debited once a month. Most banks work this way. The fee appears as its own bank transaction. Net settlement. Fees are deducted before the money is paid out. Square, Zeller and many other app based providers work this way. The deposit is smaller than the sales, and the fee never appears as a separate transaction.
With net settlement, fees are easy to miss. Sales are understated or fees are never recorded. Reconcile card sales from the POS report against deposits, and post the difference to merchant fees.
What should you set up for clients?
A separate expense account for merchant fees A monthly effective rate check, compared against September 2026 A note of each client’s provider, plan and contract end date A review whenever the effective rate rises or a contract ends
When is it worth a client changing provider?
When the saving outweighs the cost of switching. Check these before recommending a change:
Exit fees and contract end date Terminal ownership or rental terms POS and accounting software connections Settlement timing Least cost routing for debit cards. See the least cost routing guide
Some providers will match a lower rate when asked. A written quote from another provider is the strongest starting point.
It is one of the few costs a business can look at without touching staff or suppliers.
What changes in April 2027?
Every acquirer must give merchants a standard statement. It must show the value and number of transactions, the fee in dollars and the fee as a percentage, by card type and channel. Statements covering the first full month after 1 April 2027 must comply. Comparing rates will get easier then. The savings are available now.
How can clients compare their costs?
Compayr is a free merchant payment comparison site built for the surcharge reforms. Upload a statement, or enter turnover and card mix, and see what the business pays against 15 providers with published rates, from the 17 Compayr compares.
- Free to use
- No broker
- No callback
See what you'd really pay. Compare the major providers we track at your turnover
Compare nowRates and provider details are indicative, last verified October 2026. Verify with providers. Compayr may earn a referral fee when a merchant switches via our comparison.
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