Why are my card fees higher since the surcharge ban?

Your card fees are higher because you now pay the fee your customers used to cover. Since 1 October 2026 you can't surcharge eftpos, Mastercard or Visa payments, so the merchant service fee comes out of your margin. Three things can make it worse: zero cost plans have ended, 13 of the 20 card rates Compayr tracks were not cut when interchange fell (as at 29 October 2026) and costs like terminal rental continue. This is the bill shock showing on the first statements since the ban, which land in early November. On $50,000 a month in card sales, a merchant who surcharged 1.5% now absorbs about $750 a month, or $9,000 a year.

Around 20,000 Australian merchants were on "zero cost" or "no cost" EFTPOS plans, where a surcharge paid the whole fee [3]. Many more added a surcharge to every card payment. All of them are in the same position now. This page shows what bill shock costs at your turnover, what happened to the zero cost plans, and what to do about it.

Why is my card bill higher since 1 October?

Card fees did not go up on 1 October. The way they were paid changed.

Until 30 September a merchant could add a surcharge to eftpos, Mastercard and Visa payments. The customer paid it. It covered most or all of the merchant service fee. On a zero cost plan the statement showed close to $0 because the customer paid the fee at the counter.

From 1 October 2026 surcharging on eftpos, Mastercard and Visa is banned under the card schemes' rules, following the RBA's review [1]. The fee did not go away. It moved from the customer's receipt to the merchant's statement.

That is bill shock. It is not a price rise. It is the end of the mechanism that used to pay the bill.

Enter your own card turnover and old surcharge rate below to see what you now absorb.

How much more will I pay?

The cost is your card turnover multiplied by the surcharge you used to add. At a 1.5% surcharge:

Your rate may differ. Many surcharge-funded plans charged more than 1.5%. Your first statement after 1 October shows the real figure.

The rate you pay now matters as much as the surcharge you lost. As at October 2026, published in-person flat rates from the providers Compayr compares run from 0.79% to 1.60% including GST. On $50,000 a month, 0.79% is $395 a month in card processing. That is $355 a month less than the $750 above, or $4,260 a year.

What happened to zero cost EFTPOS plans?

Zero cost plans relied on the surcharge. Without it they could not continue in the same form.

• Shift4 (formerly Smartpay): Shift4 says Zero Cost and Fee-Free EFTPOS customers moved to its Low-Cost EFTPOS plan and pay merchant service fees from 1 October 2026. It does not publish that plan's rate. It publishes a minimum monthly fee of $100 plus GST, and merchants are billed the difference when their fees fall below it [5].
• Tyro No Cost EFTPOS: as at 14 October 2026, Tyro had not published what replaces the plan. Its pricing page lists its standard 1.3% transaction fee [4].

If you were on one of these plans, ask your provider for your new rate in writing. You cannot compare an offer you have not seen.

Did my provider cut its rate?

Wholesale card costs also fell on 1 October. The RBA cut the cap on consumer credit card interchange from 0.8% to 0.3% [1]. That saving only reaches you if your provider passes it on.

Compayr's Pass Through Tracker shows which providers did, out of the 15 we track. As at 29 October 2026, 7 of their 20 card rates had been cut and 13 had not. A merchant on one of those 13 rates lost the surcharge and received none of the interchange cut.

Why is my Square, Zeller or Tyro bill higher?

Their rates haven't changed. As at 29 October 2026, Square, Zeller and Tyro had not cut their standard in-person rates. Square is 1.6%, Zeller 1.4% and Tyro 1.3%, including GST. Zeller POS was cut from 1.4% to 1.2%, when used with a Zeller Terminal.

So if you surcharged, the fee is the same but it now comes out of your margin. That is the jump on your statement.

The major banks' plans did cut their flat rates. Westpac went from 1.2% to 0.79%, ANZ Worldline from 1.1% to 0.95%, CommBank Smart from 1.1% to 0.99% and NAB from 1.15% to 1.05%. Check your provider on the Pass Through Tracker, and see what the providers we compare would cost at your turnover on the comparison.

What can I do about bill shock?

1. Find your number. Your merchant statement gives you card turnover and fees. Fees divided by turnover is your effective rate.
2. Check whether your provider cut its rate. Look it up on the Pass Through Tracker.
3. Ask for a better rate. Your provider's wholesale cost fell on 1 October. That is your leverage. Our negotiation guide has a script.
4. Compare before you sign anything. The comparison ranks the providers Compayr compares at your turnover and card mix.
5. Turn on least-cost routing. It sends debit taps over the lower-cost network. See the least-cost routing guide.

How can my small business pay less to take card payments?

Compare what each provider would cost at your turnover, see your lowest cost option and switch. Our guide on how to pay less for card payments walks through it, with costs at $50,000 a month.

Run a café or a shop? See what card payments cost for cafés and restaurants and for retail.

Should I raise my prices instead?

Absorbing every cent is not the only option. Industry bodies have warned against absorbing the full cost and losing margin [2]. A small price change spread across a menu or a shelf is allowed. A separate card fee on eftpos, Mastercard or Visa is not.

The strongest position uses both. Get your card cost down first. Then decide how much belongs in your prices.

Figures are indicative estimates in AUD. Provider rates are as published and last verified on the date shown on the Pass Through Tracker. 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.