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EFTPOS and eCommerce Payment Acceptance

Last Updated: October 2025

⚠️ IMPORTANT UPDATE – PROPOSED REGULATORY CHANGES

In July 2025, the Reserve Bank of Australia (RBA) released a consultation paper proposing to remove surcharging on all Visa, Mastercard, and eftpos card transactions. These changes could take effect from mid-2026 if approved.

Key Proposed Changes:

  • Complete removal of surcharging for designated card schemes (Visa, Mastercard, eftpos)
  • Estimated consumer savings of $1.2 billion annually
  • Reduced interchange fee caps for domestic and international transactions
  • Improved transparency requirements for payment service providers

Timeline:

  • Public consultation closed 26 August 2025
  • Final decision expected by end of 2025
  • Implementation likely from 1 July 2026

What This Means for You: Approximately 90% of small businesses don’t currently surcharge and would gain around $185 million in net benefits from lower interchange fees. The 10% of small merchants and 12% of large merchants who currently surcharge will need to adjust their pricing strategies.

For the most current information, visit: https://www.rba.gov.au/payments-and-infrastructure/review-of-retail-payments-regulation/2025-07/

The information below reflects current rules as of October 2025. Please monitor RBA announcements for updates.

Table of Contents

Understanding Surcharging

  • What is a surcharge and why consider it?
  • RBA surcharging framework overview
  • Which payment types can be surcharged?

Regulatory Compliance

  • What are the RBA surcharging rules?
  • What is a reasonable cost of acceptance?
  • How to calculate your cost of acceptance
  • ACCC enforcement and penalties
  • Special considerations for taxis and ride-sharing

Customer Communication

  • How to inform customers about surcharges
  • Disclosure requirements
  • Signage and transparency obligations

Implementation for EFTPOS

  • Enabling surcharging on your terminal
  • How terminals identify card types
  • Verifying surcharge application
  • PIN entry thresholds with surcharging

Implementation for eCommerce

  • Current limitations for online payments
  • Alternative cost recovery methods
  • Future considerations

Transaction Management

  • How refunds are handled
  • Void transactions and surcharges
  • GST implications
  • Integrated POS systems
  • Tips and surcharging

Financial Management

  • When and how surcharges are settled
  • What if surcharges exceed your fees?
  • Reporting and reconciliation
  • Review frequency requirements

Understanding Surcharging

What is a surcharge and why consider it?

A surcharge is an additional amount you charge customers on top of your goods or services price to recover the costs of accepting card payments. The RBA framework ensures businesses have the right to surcharge for card payments while ensuring consumers are not surcharged excessively.

Key Points:

  • Surcharging is entirely optional – it’s your business decision
  • You are fully responsible for any customer complaints regarding surcharges
  • You must ensure surcharges don’t exceed your actual cost of acceptance for each card type
  • The right to surcharge applies to all payment methods, not just electronic payments

Important Consideration: Recent research shows that cash acceptance costs have risen significantly and may now be more than twice as expensive as card payments due to higher back-office and labour costs. This changing cost structure is one reason the RBA is reviewing the surcharging framework.

RBA Surcharging Framework Overview

The RBA first introduced surcharging rules in 2003 to support competition and efficiency in the payments system. The framework was amended in 2013 and 2016 to define the costs merchants are permitted to recover through surcharges.

Current Framework Principles:

  1. Schemes cannot impose ‘no-surcharge’ rules that prevent merchants from surcharging
  2. Card schemes may implement rules limiting surcharges to the reasonable cost of acceptance
  3. The ACCC enforces compliance and can take action against excessive surcharging
  4. Merchants retain the right to fully recover their legitimate card acceptance costs

RBA Policy Objectives: The original intent was to promote efficiency by encouraging consumers to use lower-cost payment methods and to increase competitive pressure on card networks. However, the RBA now considers that surcharging may be discouraging the use of more efficient electronic payment methods as cash usage has declined.

Reference: RBA Surcharging Standards – https://www.rba.gov.au/payments-and-infrastructure/cards/q-and-a/payment-card-surcharging/

Which payment types can be surcharged?

You can currently apply surcharges to the following card categories:

EFTPOS Terminals:

  • Mastercard Debit
  • Mastercard Credit
  • Visa Debit
  • Visa Credit
  • American Express / JCB
  • eftpos
  • UnionPay Debit
  • UnionPay Credit

eCommerce Platforms:

  • Currently, most eCommerce payment solutions do not support automated surcharging
  • You may need to manually add payment processing fees to your pricing structure
  • Some payment gateways offer limited surcharging functionality – check with your provider

Designated vs Non-Designated Systems: The RBA standard and ACCC enforcement powers currently apply to five card systems: eftpos, Debit Mastercard, Mastercard Credit, Visa Debit and Visa Credit. Prepaid cards of these systems are subject to similar rules as debit cards.

Other card systems like American Express proprietary cards, Diners Club, and UnionPay have provided undertakings to the RBA to apply similar surcharging standards.

Buy Now, Pay Later (BNPL): BNPL providers typically have contractual arrangements that prevent businesses from surcharging BNPL transactions, even though BNPL services are usually more expensive for businesses to accept than cards. The RBA has considered but not yet mandated the removal of these no-surcharge rules.

Regulatory Compliance

What are the RBA surcharging rules?

The RBA rules allow you to apply surcharges on card payments, provided you don’t charge cardholders more than the reasonable cost of acceptance for these payments. This means you cannot profit from surcharging.

Core Requirements:

  1. No Profit from Surcharging
    • Surcharges must not exceed your actual costs
    • The ACCC has enforcement powers to prevent excessive surcharging and can impose penalties
  2. Transparency Obligations
    • You must comply with Australian Consumer Law provisions prohibiting misleading or deceptive conduct regarding prices
    • If there’s no surcharge-free payment option available, surcharges must be included in displayed prices
  3. Annual Cost Review
    • Your payment service provider must provide annual statements showing your average cost of acceptance for each regulated card payment system
    • You must review your surcharge rates at least annually

Special Industry Rules:

Taxis: The RBA surcharging standard applies to car hire and ride-sharing services, but doesn’t apply to taxi fares, which are regulated by State and Territory governments. Check your local regulations if you operate taxi services.

Reference: Competition and Consumer Act 2010 (ACCC enforcement provisions)

What is a reasonable cost of acceptance?

The RBA states that reasonable cost of acceptance includes the merchant service fee charged by your payment service provider, plus certain additional costs if they are directly related to accepting that particular card type.

Permitted Additional Costs:

You may include these costs if applicable:

  1. Gateway Fees
    • Fees paid to payment service providers or gateway providers
  2. Fraud Prevention Services
    • Costs paid to external fraud prevention providers
  3. Terminal Costs (with conditions)
    • EFTPOS machine costs paid to providers OTHER than your acquirer or payment facilitator
    • Note: If your payment provider supplies your terminals, these costs are typically already included in your merchant service fees
  4. Fraud-Related Chargeback Fees
    • Administrative fees for processing chargebacks
    • NOT the actual chargeback amounts themselves
  5. Forward Delivery Risk Insurance
    • Applies mainly to agents (travel agents) who insure against principal supplier failure
    • Insurance costs against liability for airline or hotel failures on card payments

Costs NOT Permitted:

The following cannot be included in cost of acceptance:

  • Staff costs or training time
  • General business overheads (electricity, premises)
  • Non-compliance fines from your acquirer
  • Actual chargeback amounts (only the administrative fees)
  • Any costs already recovered in other ways

Blended Surcharging Restrictions:

If you wish to set a single surcharge rate across multiple card types, it cannot exceed the average cost of acceptance of the lowest-cost system.

Example:

  • Your Visa Credit cost of acceptance: 1.50%
  • Your Visa Debit cost of acceptance: 0.50%
  • You can charge 1.50% for Visa Credit and 0.50% for Visa Debit separately
  • If you want a single rate for both, maximum allowed is 0.50%
  • You cannot average the costs and charge 1.00% for both, as this would excessively surcharge Visa Debit

Percentage vs Fixed Surcharges:

Since most card acceptance costs vary with transaction values, percentage-based surcharges are generally most appropriate. Fixed-dollar surcharges may be acceptable only if your costs are truly flat amounts, such as a fixed per-transaction fee.

Fixed-dollar surcharges have been particularly controversial in the airline industry, where a $7-8 booking fee may be excessive for low-value domestic fares but below cost for high-value international business class tickets.

How to calculate your cost of acceptance

Obtaining Your Cost Data:

Your payment service provider must provide:

  • Monthly cost of acceptance statements broken down by card type
  • Annual summary statements
  • Historical data showing your actual transaction mix and fees

Calculation Methods:

  1. For Established Businesses:
    • Use your actual transaction history over 12 months
    • Calculate weighted average based on your card mix
    • Review monthly and update at least annually
  2. For New Businesses:
    • Your provider will supply generic cost estimates
    • Update rates monthly as transaction history builds
    • Move to actual costs once sufficient data available
  3. Typical Cost Components:
    • Interchange fees (varies by card type)
    • Scheme fees (Visa, Mastercard, etc.)
    • Acquirer margins
    • Gateway/processor fees
    • Applicable terminal costs

Where to Find Information:

  • Check your payment provider’s merchant portal or dashboard
  • Review monthly statements for “Cost of Acceptance” sections
  • Many providers offer downloadable reports by MID (Merchant ID)
  • Request clarification from your provider if unclear

Important: Your payment provider cannot advise you whether to enable surcharging or what specific rates to set – this is your business decision.

ACCC Enforcement and Penalties

The ACCC has been given powers under the Competition and Consumer Act 2010 to take action against merchant surcharging that exceeds the merchant’s cost of card acceptance.

ACCC Powers:

  1. Investigation Authority
    • Can investigate complaints about excessive surcharging
    • May require you to provide information and documents about acceptance costs
    • Can examine your merchant statements and fee structures
  2. Enforcement Actions
    • Issue infringement notices requiring penalty payments
    • Take court action seeking pecuniary penalties
    • Require corrective actions and customer refunds

What Triggers Investigation:

  • Customer complaints about unreasonably high surcharges
  • Surcharges that appear inconsistent with typical acceptance costs
  • Failure to provide cost documentation when requested
  • Evidence that surcharge revenue exceeds total payment acceptance costs

Your Obligations if Investigated:

  • Provide merchant statements and fee schedules
  • Document all costs included in surcharge calculations
  • Demonstrate compliance with RBA permitted cost categories
  • Show annual review of surcharge rates

Avoiding Problems:

  • Keep detailed records of all payment acceptance costs
  • Review and update surcharge rates at least annually
  • Ensure transparent disclosure to customers
  • Don’t round up surcharges significantly above actual costs
  • Monitor if total surcharges exceed your total fees

If Surcharges Exceed Your Fees:

If you collect more in surcharges than you pay in payment fees, this may indicate excessive surcharging. The ACCC will likely investigate, and penalties may apply. Some payment providers will credit excess amounts back to your account, but this doesn’t protect you from ACCC investigation.

Reference: ACCC Payment Surcharges guidance – https://www.accc.gov.au/

Customer Communication

How to inform customers about surcharges

Legal Requirements:

You must display clear signage informing customers that surcharges may apply and showing the rates. Under Australian Consumer Law, you cannot engage in misleading or deceptive conduct regarding prices.

Signage Requirements:

  1. Placement:
    • Prominent, conspicuous location at all points of sale
    • Visible before customers commit to purchase
    • At each payment terminal for EFTPOS
    • On checkout pages for eCommerce (if supported)
  2. Content:
    • Specific surcharge rates for each card type
    • Clear, legible text
    • Language customers can easily understand
    • Must NOT state that surcharges are levied by card schemes or financial institutions
  3. Format Options:
    • Physical signs at registers
    • Table displays
    • Website checkout page notifications
    • Email confirmations showing surcharges separately
    • Receipt disclosures

Sample Sign Language:

“Card Payment Surcharges Apply:

  • Visa/Mastercard Debit: 0.5%
  • Visa/Mastercard Credit: 1.5%
  • American Express: 2.0%
  • eftpos: No surcharge”

Disclosure Requirements

Before Transaction Completion:

  • Customers must be informed before finalizing their payment
  • On EFTPOS terminals, “Surcharging may apply” message displays
  • For eCommerce, show surcharge in cart or at checkout
  • Give customers opportunity to choose alternative payment methods

Surcharge-Free Alternative:

If you enable surcharging, you must ensure a surcharge-free payment method is available, such as:

  • Cash payments
  • EFTPOS Savings account
  • Bank transfer (though practical considerations may limit this)

If No Alternative Exists:

If there is no way for a consumer to pay without paying a surcharge, you must include the surcharge in the displayed price of goods or services. This prevents “drip pricing” where the final price is significantly higher than advertised.

Receipt and Documentation:

  • Show surcharge as separate line item on receipts
  • Include in reconciliation reports
  • Maintain for record-keeping and potential ACCC review

Implementation for EFTPOS

Enabling surcharging on your terminal

Setup Process:

  1. Provider Portal Configuration:
    • Log into your payment service provider’s merchant portal
    • Navigate to surcharging or pricing settings
    • Set surcharge rates for each card category
    • Save configuration
  2. Terminal Activation:
    • Surcharging must be enabled on each terminal individually
    • Access terminal settings menu
    • Enable surcharging feature
    • Confirm activation
  3. Verification:
    • Process test transactions for each card type
    • Verify correct surcharge rates apply
    • Check receipts show surcharges separately
    • Test refund processing

Consult Your Provider’s Documentation: Specific steps vary by payment provider and terminal model. Refer to your provider’s support resources or contact their merchant support team.

How terminals identify card types

Automatic Classification:

Modern EFTPOS terminals automatically classify card types during transactions by identifying the Bank Identification Number (BIN) of the presented card.

What This Means:

  • No need to visually inspect cards
  • No manual selection of surcharge rates
  • System applies correct rate automatically based on card type
  • Works for tap, insert, and swipe transactions

BIN Detection:

  • First 6-8 digits of card number identify card type
  • Terminal determines if card is debit, credit, prepaid
  • Identifies card scheme (Visa, Mastercard, etc.)
  • Applies corresponding surcharge rate from your configuration

Verifying surcharge application

On-Screen Confirmation:

  1. During Transaction:
    • “Surcharging may apply” message displays
    • Press INFO button to view exact surcharge amount before completion
    • Confirms rate being applied to current payment
  2. On Receipt:
    • Surcharge shown as separate line item
    • Original amount and surcharge amount clearly displayed
    • Total amount including surcharge

Testing Your Setup:

  • Initiate standalone payment transactions
  • Test with different card types
  • Verify surcharge calculations are correct
  • Check surcharge amounts match your configured rates

Reconciliation Reports:

  • Print reconciliation report from terminal
  • Surcharge totals included in daily/batch reports
  • Compare against transactions processed
  • Ensure surcharges properly recorded

PIN entry thresholds with surcharging

Standard Contactless Limits:

Contactless (PayPass/payWave) transactions typically require PIN or signature for:

  • All transactions over $200
  • Some transactions between $100-$200 (card issuer dependent)

Modified Limits with Surcharging:

When surcharging is enabled, PIN entry thresholds are lowered to approximately 95% of the standard $100-$200 threshold.

Why This Matters:

  • Ensures surcharged transactions stay within contactless limits
  • A $95 transaction with 5% surcharge = $99.75 (still under $100)
  • Prevents exceeding limits due to added surcharge amount

Variations:

  • Specific limits determined by card schemes
  • Individual card issuers may set their own thresholds
  • Different restrictions may apply for different card types

Implementation for eCommerce

Current limitations for online payments

Important Limitation:

Most eCommerce payment platforms and gateways do NOT currently support automated surcharging functionality. This is a significant consideration for online merchants.

Reasons for Limited Support:

  • Technical complexity in calculating and displaying surcharges in real-time
  • Integration challenges with shopping carts and payment gateways
  • Customer experience concerns with price changes at checkout
  • International customers and varying regulations

Available Options:

  1. Manual Price Adjustments:
    • Build payment processing costs into your product prices
    • Offer cash/bank transfer discounts instead of card surcharges
  2. Gateway-Specific Features:
    • Some payment gateways offer limited surcharging capability
    • Check with providers like Stripe, PayPal, Braintree, etc.
    • May only support certain card types or transaction types
  3. Custom Development:
    • Develop custom integration with payment gateway APIs
    • Calculate and display surcharges before payment processing
    • Requires technical expertise and ongoing maintenance

Alternative cost recovery methods

Instead of Surcharging:

  1. Inclusive Pricing:
    • Factor average payment costs into all product prices
    • Simplifies checkout experience
    • No additional customer communication required
  2. Payment Method Discounts:
    • Offer cash/bank transfer discount off regular price
    • Economically equivalent to surcharging cards
    • May be perceived more positively by customers
  3. Minimum Order Values:
    • Set minimums for card payments
    • Encourages bank transfer for small orders
    • Reduces percentage impact of fixed costs
  4. Tiered Shipping/Handling:
    • Include payment processing in handling fees
    • Must comply with Australian Consumer Law disclosure requirements

Future considerations

Pending RBA Changes:

If the proposed RBA changes proceed, surcharging will be removed entirely for designated schemes from mid-2026. This may make investment in eCommerce surcharging solutions unnecessary.

If Surcharging Remains:

  • Payment gateway providers may develop better surcharging tools
  • Industry standardization could improve implementation
  • Regulatory guidance may evolve for online transactions

Monitor Developments:

  • Review RBA consultation outcomes
  • Check for payment gateway updates
  • Consider timing of any surcharging implementation

Transaction Management

How refunds are handled

Refund Process with Surcharges:

When processing a refund, the EFTPOS terminal or system will prompt to ensure the surcharge is included in the refund amount.

EFTPOS Terminal Refunds:

  1. Prompt Displayed:
    • “Please include any surcharges in the refund amount”
    • Message appears at bottom of screen
  2. Calculate Total Refund:
    • Original purchase amount + original surcharge
    • Locate original transaction receipt for exact amounts
    • Can also check merchant portal for transaction details
  3. Process Full Refund:
    • Enter total amount including surcharge
    • Customer receives full refund of amount charged
    • Surcharge refund processes automatically with transaction refund

eCommerce Refunds:

  • Manual process to calculate and refund total including any surcharge
  • Check original transaction record for surcharge amount
  • Process refund for full amount through payment gateway

Best Practices:

  • Keep detailed records of original transactions
  • Document surcharge amounts on all receipts
  • Provide customers with itemized refund details
  • Ensure refund timing aligns with payment provider settlement

Void transactions and surcharges

Voiding vs Refunding:

Void:

  • Cancels transaction before settlement/batch close
  • Transaction never fully processes
  • Surcharge automatically voided with main transaction
  • No separate action needed

Refund:

  • Reverses settled transaction
  • Occurs after batch close/settlement
  • Requires manual inclusion of surcharge amount
  • Processed as new transaction

When Voiding:

  1. EFTPOS Terminals:
    • Access void function before closing batch
    • Select transaction to void
    • System automatically includes surcharge in void
    • Both amounts reversed
  2. Timeframe:
    • Usually same business day before settlement
    • Check your terminal’s batch close time
    • After settlement, must process refund instead

GST implications

Important Tax Consideration:

Surcharging is an arrangement between you and your customers, not between your payment provider and you. Therefore, GST implications must be assessed by you to ensure compliance with the Goods and Services Tax Act 1999.

Key Points:

  1. GST on Surcharges:
    • You are responsible for accounting for any GST that applies to surcharges
    • Surcharges generally attract GST if your underlying sale attracts GST
    • Must be included in your BAS reporting
  2. Calculating GST:
    • If $100 sale includes $10 GST (sale is $90.91 + $9.09 GST)
    • 1.5% surcharge = $1.50 on $100 total
    • GST component of surcharge = approximately $0.14
  3. Record Keeping:
    • Track surcharge amounts separately
    • Calculate GST component on surcharges collected
    • Include in taxable supplies reporting

Seek Professional Advice:

Consult your accountant or tax advisor for specific guidance on:

  • How surcharges affect your GST calculations
  • Proper recording in accounting systems
  • BAS reporting requirements
  • Industry-specific considerations

Reference: Australian Taxation Office GST guidance – https://www.ato.gov.au/

Integrated POS systems

POS Integration with Surcharging:

Many businesses use Point of Sale (POS) or Practice Management Software (PMS) integrated with their payment terminals.

Reconciliation with Surcharging Enabled:

Good news: You can still reconcile easily if surcharging is enabled.

How It Works:

  1. Settlement Timing:
    • Surcharge amounts typically not included in daily settlement by default
    • Surcharges usually offset against monthly fees
    • POS/PMS shows transaction total before surcharge added
  2. Matching Amounts:
    • Settlement from payment provider matches POS transaction totals
    • Surcharges handled separately in monthly fee reconciliation
    • No discrepancies in daily POS-to-settlement matching
  3. Reporting:
    • POS shows base transaction amounts
    • Payment provider reports show separate surcharge totals
    • Monthly reconciliation includes surcharge offset against fees

Critical Warning – Double Surcharging:

IMPORTANT: If your POS also has a surcharging feature, enabling surcharging in both POS and EFTPOS will result in double-charging customers.

Prevention:

  • If enabling surcharging through your payment terminal, DISABLE any surcharge functionality in your POS
  • Configure POS to pass through correct base amounts without adding surcharges
  • Test thoroughly with small transactions before going live
  • Train staff on which system handles surcharging

Integration Testing:

  • Process test transactions through full POS-to-terminal flow
  • Verify surcharge only applied once
  • Check receipts show correct itemization
  • Confirm settlement reconciliation works correctly

Tips and surcharging

Tip Transaction Structure:

A tip transaction consists of two components:

  1. Purchase amount – the base transaction
  2. Tip amount – the gratuity

Surcharge Application:

  • Surcharge applies ONLY to the purchase component
  • NO surcharge applied to the tip component
  • This is standard across most payment systems

Example:

  • Meal cost: $100
  • Tip: $20
  • Total before surcharge: $120
  • 1.5% surcharge on $100 purchase = $1.50
  • Final total: $121.50
  • (NOT $121.80 which would be 1.5% on full $120)

Why Tips Aren’t Surcharged:

  • Tips are discretionary customer gratuity
  • Not part of merchant’s business costs
  • Industry standard practice
  • Customer goodwill consideration

Implementation Note:

This is typically handled automatically by payment terminals and systems. You don’t need to manually configure this – the system applies surcharges only to the purchase component by default.

Financial Management

When and how surcharges are settled

Settlement Methods:

Different payment providers handle surcharge settlement differently. Check with your specific provider for exact details.

Common Method – Monthly Offset:

  1. Daily Settlement:
    • Surcharge amounts NOT included in daily settlement deposits
    • You receive transaction amounts only
    • Surcharges tracked separately
  2. Monthly Fee Invoice:
    • Provider calculates total surcharges processed during month
    • Subtracts surcharge total from monthly fee invoice
    • You pay reduced net amount (fees minus surcharges)

Example Calculation:

  • Monthly merchant fees: $1,000
  • Surcharges collected during month: $750
  • Net invoice amount: $250

Alternative Method – Included in Settlement:

Some providers include surcharges in daily settlements:

  • Surcharge amount added to each transaction settlement
  • You receive transaction amount + surcharge
  • Monthly fees charged separately

American Express and JCB:

  • Direct Settlement Program: If your provider settles Amex/JCB, surcharges included in their settlement process
  • Separate Amex Agreement: If you have direct agreement with American Express, they handle settlement and surcharging according to your agreement terms

Documentation:

  • Check merchant agreement for specific settlement terms
  • Review monthly statements showing surcharge calculations
  • Confirm settlement method with your provider’s support team

What if surcharges exceed your fees?

When Collections Exceed Costs:

If you collect more in surcharges than your payment acceptance costs, this situation requires careful attention.

Provider Actions:

Some payment providers will:

  • Credit the excess amount to your linked bank account
  • Show credit on monthly statement
  • Transfer funds via regular settlement process

Regulatory Concern:

CRITICAL: Just because your provider credits excess amounts doesn’t mean you’re compliant with RBA regulations.

RBA regulations state that businesses should not profit from surcharging. The ACCC monitors for this behavior and will:

  • Contact businesses showing patterns of excess surcharging
  • Request detailed cost documentation
  • Investigate whether surcharges exceed actual costs
  • Apply fines and penalties if excessive surcharging confirmed

Why This Happens:

  • Surcharge rates set too high relative to actual costs
  • Transaction mix different than expected (more low-cost cards)
  • Fees reduced but surcharge rates not updated
  • Failure to conduct required annual review

Corrective Actions:

  1. Immediate:
    • Review current cost of acceptance data
    • Compare to your surcharge rates
    • Reduce surcharge rates if necessary
  2. Ongoing:
    • Conduct monthly reviews of surcharge vs. costs
    • Update rates promptly when costs change
    • Document all reviews and rate adjustments
    • Consider lower rates to provide buffer

Avoiding Problems:

  • Set surcharge rates conservatively below maximum permitted
  • Review and adjust rates quarterly, not just annually
  • Monitor monthly statements for surcharge-to-fee ratios
  • Keep detailed records for potential ACCC review

Reporting and reconciliation

Available Reports:

Your payment service provider should offer multiple reporting options:

1. Terminal Reports:

  • Print reconciliation report directly from EFTPOS terminal
  • Shows surcharge totals included with daily transaction summaries
  • Available at batch close or on-demand
  • Useful for immediate verification

2. Online Portal Reports:

Most providers offer:

  • Reconciliation Summary Reports:
    • Daily and monthly surcharge totals
    • Breakdown by card type
    • Comparison to transaction volumes
  • Transaction Reports:
    • Individual transaction details
    • Surcharge amounts per transaction
    • Searchable and filterable
  • Surcharge-Specific Reports:
    • Dedicated surcharge analysis
    • Comparison to cost of acceptance
    • Historical trending

3. Downloadable Data:

  • CSV or Excel exports
  • Import into accounting systems
  • Detailed transaction-level data
  • Suitable for auditing and analysis

Reconciliation Process:

Daily:

  1. Print/export transaction report
  2. Verify surcharge totals match expected amounts
  3. Reconcile against POS if integrated
  4. Address any discrepancies immediately

Monthly:

  1. Review monthly statement from provider
  2. Verify total surcharges match daily reports
  3. Confirm offset against fees calculated correctly
  4. Compare to cost of acceptance data

Annual:

  1. Comprehensive review of surcharge rates vs. actual costs
  2. Calculate weighted averages across full year
  3. Adjust surcharge rates if needed
  4. Document review for compliance records

Record Retention:

Maintain records including:

  • All monthly statements
  • Transaction reports with surcharge details
  • Cost of acceptance statements
  • Documentation of annual reviews
  • Any correspondence with ACCC or payment providers

Recommended retention: Minimum 7 years for tax/audit purposes

Review frequency requirements

Annual Review Requirement:

You must review your cost of acceptance and surcharge rates at least once per year. This is a regulatory requirement under the RBA framework.

When to Review:

Minimum (Annual):

  • Review using 12-month cost of acceptance data, typically from your June statement covering the July-June financial year
  • Compare surcharge rates to actual costs
  • Adjust rates if costs have changed
  • Document review completion

Recommended (More Frequent):

  • Monthly: Quick check of surcharge-to-fee ratio
  • Quarterly: Formal review of cost data and rate appropriateness
  • After Any Fee Changes: Immediate review when provider changes fees
  • After Business Changes: Review if transaction mix significantly changes

What to Review:

  1. Cost of Acceptance Data:
    • Latest figures from payment provider
    • Weighted averages based on your card mix
    • Any new fee structures or charges
  2. Transaction Mix:
    • Changes in types of cards customers use
    • Shift between debit and credit card usage
    • Introduction of new card types
  3. Surcharge Rates:
    • Current rates still appropriate?
    • Any cards being over-surcharged?
    • Opportunity for blended rate simplification?
  4. Compliance:
    • Rates below or at cost of acceptance?
    • Customer signage still accurate?
    • No complaints or issues?

Documentation:

Keep records of each review including:

  • Date of review
  • Cost of acceptance data used
  • Surcharge rates before and after (if changed)
  • Rationale for any changes or decisions to maintain rates
  • Sign-off by responsible person

Reference: Access cost of acceptance data through your payment provider’s merchant portal under costs or fees section.

Additional Resources

RBA Resources

Primary References:

  • RBA Surcharging Standards: https://www.rba.gov.au/payments-and-infrastructure/cards/q-and-a/payment-card-surcharging/
  • July 2025 Consultation Paper: https://www.rba.gov.au/payments-and-infrastructure/review-of-retail-payments-regulation/2025-07/
  • Guidance Note on Surcharging Standards: https://www.rba.gov.au/payments-and-infrastructure/cards/201211-var-surcharging-stnds-guidance/

For Taxi Operators: Check state/territory specific regulations – surcharging in taxi industry may have different rules.

ACCC Resources

Enforcement and Compliance:

  • ACCC Payment Surcharges: https://www.accc.gov.au/
  • Submit complaint about excessive surcharging
  • Information on penalty provisions

Payment Industry Resources

Payment Provider Portals:

  • Log in to review cost of acceptance
  • Access transaction and surcharge reports
  • Update surcharge configurations

Professional Advice:

  • Consult your accountant for GST implications
  • Legal advice for compliance questions
  • Industry associations for best practices

Frequently Asked Questions

Q: Do I have to surcharge? A: No, surcharging is completely optional. It’s your business decision whether to recover payment acceptance costs through surcharging or absorb them into your general pricing.

Q: Can I make a profit from surcharging? A: No. RBA regulations explicitly prohibit profiting from surcharges. You can only recover your actual reasonable costs of card acceptance.

Q: What happens to surcharging after July 2026? A: If the RBA’s proposed changes proceed as expected, surcharging on Visa, Mastercard, and eftpos cards will be removed entirely from July 2026. Final decisions are expected by end of 2025.

Q: How often must I review my surcharge rates? A: At minimum annually, but monthly or quarterly reviews are recommended to ensure ongoing compliance and optimal rate setting.

Q: Can I surcharge my eCommerce transactions? A: Technical capability is currently limited for automated eCommerce surcharging. Most online merchants build payment costs into pricing or offer bank transfer discounts instead.

Q: What if a customer complains about my surcharge? A: You are fully responsible for customer complaints. Ensure you can demonstrate your surcharges don’t exceed your actual costs and that you’ve provided clear disclosure. If complaints escalate to ACCC, provide full documentation of your cost of acceptance.

Q: Can I charge different rates for different card types? A: Yes, you can and should set different surcharge rates reflecting the different costs of accepting various card types, provided each rate doesn’t exceed that card type’s specific cost of acceptance.

Q: What about Buy Now, Pay Later services? A: Most BNPL providers currently prohibit surcharging in their merchant agreements. The RBA is considering whether to require removal of these restrictions.

Q: If I stop surcharging, can I change my prices? A: Yes, pricing is your business decision. If surcharging is removed as proposed, you’ll need to determine whether to adjust prices, accept reduced margins, or benefit from lower interchange fees.

Q: How do I know if my payment provider is calculating costs correctly? A: Your provider must supply detailed statements showing cost breakdowns. If unclear, request explanation. You can verify calculations against your merchant agreement fee schedules. Enhanced transparency requirements are proposed that will require more detailed reporting from payment providers.

Conclusion

Surcharging is a business tool that allows you to recover card payment acceptance costs, but it comes with significant regulatory responsibilities and disclosure requirements. With the RBA proposing to remove surcharging entirely from mid-2026, carefully consider whether implementing or maintaining surcharging makes sense for your business at this time.

Key Takeaways:

  1. Compliance is Critical: Ensure surcharges never exceed actual costs
  2. Transparency is Required: Clear disclosure to customers before purchase
  3. Regular Review is Mandatory: At least annual cost and rate reviews
  4. Change is Coming: Monitor RBA announcements about proposed reforms
  5. Documentation Matters: Keep detailed records for ACCC compliance

Next Steps:

  • Review your current payment acceptance costs
  • Decide if surcharging aligns with your business strategy
  • Consider pending regulatory changes in your decision
  • Consult with your payment provider for specific implementation guidance
  • Seek professional advice for tax and legal compliance

For current updates on the RBA’s review and proposed reforms, visit: https://www.rba.gov.au/payments-and-infrastructure/review-of-retail-payments-regulation/

This guide provides general information only and does not constitute financial, legal, or tax advice. Consult qualified professionals for advice specific to your business circumstances.

Last Updated: October 2025