Avoid These Credit Card Surcharge Mistakes in Your Business

In the 2025-26 financial year, the Australian Competition and Consumer Commission (ACCC) will focus heavily on ensuring businesses comply with rules surrounding credit card surcharges and merchant fees. While paying by card is convenient for customers, it can come with costs for your business due to merchant fees charged by payment processors like banks. If you decide to pass these fees onto your customers, it’s crucial to do so transparently and fairly to avoid potential penalties.

Here’s what you need to know to ensure your business stays compliant with credit card surcharge regulations.

Don’t Charge a Flat Fee for Card Payments
Many businesses charge a processing fee when customers pay with a credit card or other payment methods, but it’s important to understand the rules about these charges. You cannot apply a flat fee for all card transactions, regardless of the card type. A flat fee could end up being more than the actual merchant fee you incur, which is against the regulations.

Understand Your ‘Cost of Acceptance’
The only surcharge you’re allowed to pass on is the actual cost your business incurs to accept card payments. This is known as the “cost of acceptance.” For example, if your payment processor charges a 1% fee for Mastercard transactions, you can charge your customers a maximum of 1% for payments made with that card. Any surcharge you add beyond the cost of acceptance is not allowed.

If requested by a customer, you must be able to provide proof of how you’ve determined your surcharge.

Make Surcharges Clearly Visible
Your customers must be fully aware of any surcharges before they finalize a payment. Whether it’s online, at your point of sale, or in customer contracts, the surcharge amount should be clearly displayed. This allows your customers to make an informed decision before committing to a purchase or booking.

What to Do if Your Business Only Accepts Card Payments
If your business exclusively accepts card payments, meaning customers cannot pay in cash, the displayed price must include the minimum surcharge.

If you choose to list prices both with and without the surcharge, the higher price (including the surcharge) should be displayed more prominently. Additionally, if different card types incur different surcharges, make sure the higher surcharges are clearly displayed for those card types.

By following these guidelines, you can avoid costly mistakes and ensure your business remains compliant with credit card surcharge regulations.