Who Cut The Card Rate? Most rates we track didn't move.
By Dougal Anderson, Co-founder, Compayr · · 4 min
On 1 October 2026 the wholesale cost of accepting a consumer credit card fell. The RBA cut the cap on consumer credit interchange from 0.8% to 0.3%. Surcharging ended on the same day.
Westpac cut its Flat Transaction Rate from 1.20% to 0.79% that day. That is the largest cut in the 20 card rates Compayr tracks. 13 of those 20 have not moved at all.
The interchange cut
Interchange is the fee a provider pays the card issuer on every card payment. It is a large part of what a provider pays to process a card.
The RBA cut two caps on 1 October 2026.
- Consumer credit cards: 0.8% down to 0.3%
- Debit and prepaid cards: 0.2% down to 0.16% of value, or 8 cents a transaction, whichever applies
Commercial credit cards were left at 0.8%.
The provider's cost fell on 1 October. The merchant's rate falls only if the provider cuts it.
Westpac passed it on
Westpac announced the cut on 23 September 2026. It took effect on 1 October.
- EFTPOS terminals and PayWay: 1.20% down to 0.79%
- EFTPOS Air and OnlinePay: 1.40% down to 1.25%
The rates cover eftpos, Mastercard, Visa and UnionPay. Amex is priced separately. They apply to eligible new and existing Flat Transaction Rate customers. Terminal rental still applies, from $24.75 a month.
Westpac tied the cut to the end of surcharging. Paul Fowler, Westpac's chief executive of business and wealth, said passing on the savings means businesses "can keep more of what they earn".
A business taking $50,000 a month in eftpos, Mastercard and Visa payments paid $600 a month at 1.20%. At 0.79% it pays $395. That is $205 a month, or $2,460 a year.
Who else cut, and who didn't
Compayr tracks 20 published card rates from 15 Australian providers. Two further providers we compare price only by quote and publish no rate. Seven of the 20 have been cut since our 3 September baseline. Westpac's cut is twice the size of the next.
| Provider | 3 Sep 2026 | 16 Oct 2026 | Change |
|---|---|---|---|
| Westpac | 1.20% | 0.79% | down 0.41 pts |
| Zeller POS | 1.40% | 1.20% | down 0.20 pts |
| ANZ Worldline | 1.10% | 0.95% | down 0.15 pts |
| CommBank Smart (flat rate) | 1.10% | 0.99% | down 0.11 pts |
| NAB | 1.15% | 1.05% | down 0.10 pts |
| Shopify POS | 1.95% | 1.85% | down 0.10 pts |
| Stripe (online) | 1.70% | 1.65% | down 0.05 pts |
All rates inc-GST, as published.
Zeller cut its POS-integrated rate from 1.40% to 1.20% in September, before the reform. It is a bundled discount: it applies only where Zeller POS is integrated with a Zeller Terminal, and not to merchants already paying below 1.40%.
13 rates have not changed. Square 1.6%, Zeller 1.4%, Tyro 1.3% and SumUp 1.4% are unchanged in-person. So are Square, Zeller, PayPal, Eway, Pin Payments and Airwallex online, and Lightspeed Retail, Square POS and Tyro POS.
Flat rate or interchange-plus
How a business is priced decides whether the cut reaches it.
- Interchange-plus: the provider charges interchange plus a margin. The cut flowed through automatically on 1 October.
- Flat rate: one rate for every card. The cut reaches the business only if the provider lowers the rate.
Many small businesses are on a flat rate. A flat rate that has not moved since September means the provider's cost fell and the merchant's did not.
What to do
- Compare your October statement rate with September's. October statements arrive in early November. How to read your merchant statement shows where to find your rate on the bill.
- Work out what the end of surcharging costs you: surcharge ban calculator
- Check whether your provider cut its rate: Pass Through Tracker
- Compare the providers we track at your turnover: compare your rate
A lower rate is not always a lower cost. Terminal rental, monthly fees and your card mix change the answer.
Sources
- Westpac media release, 23 September 2026
- SmartCompany, 24 September 2026 (terminal rental from $24.75)
- Compayr Pass Through Tracker, rates as at 16 October 2026
Rates on Compayr are shown with the date they were last verified. Always confirm current pricing directly with the provider. Compayr is not a financial adviser and this article is general information, not financial advice. Compayr may receive a referral fee from a provider when a merchant switches through us. This does not affect our rankings, which are ordered on estimated card acceptance cost.
More in RBA Reforms
RBA banned card surcharges from October 1: What this means for your business
Since 1 October 2026, adding a surcharge to eftpos, Mastercard and Visa payments has been banned in Australia under the card schemes' rules. If your business surcharged, the cost of accepting cards moved onto your side of the ledger, and you will see it on your first post-October statement.
The 62.5% cut to wholesale card costs — and why your bill may not budge
While the surcharge ban grabs the headlines, the quieter half of the RBA's October reform is the one that decides whether card acceptance actually gets cheaper for your business: a cut to the wholesale "interchange" cap on domestic credit cards from 0.8% down to 0.3% [1]. That's a 62.5% reduction — in the cap. What lands in your bank account depends entirely on how your provider prices you. For many merchants, the honest answer is: nothing, unless you act.