What Are Australia's Surcharging Rules?
In Australia, the Reserve Bank of Australia (RBA) regulates how much businesses can charge customers for using a particular payment method. The key rule: surcharges must not exceed your reasonable cost of acceptance for that card type.
What's Allowed
- You can pass on the cost of accepting a specific card type
- You cannot profit from surcharges
- Surcharges must be based on actual acceptance costs (your blended rate or card-specific rate)
Common Mistakes
1. Charging a Fixed Flat Rate
Many businesses charge a flat $0.50 or 1.5% for all cards. This can breach the RBA's rules if it exceeds your actual cost for cheaper card types like EFTPOS.
2. Surcharging EFTPOS Transactions
EFTPOS is typically the cheapest payment type. Surcharging EFTPOS at the same rate as Visa credit cards almost certainly breaches the rules.
3. Not Disclosing Surcharges
Under Australian Consumer Law, surcharges must be disclosed before payment is finalised.
ACCC Enforcement
The ACCC actively investigates surcharging complaints. Businesses found in breach can face fines and orders to refund customers.
What You Should Do
- Calculate your actual cost of acceptance for each card type from your merchant statement
- Set surcharges at or below those rates
- Display surcharge notices clearly at the point of sale
- Review regularly because your rates may change
The Easiest Solution
If managing card-specific surcharges is too complex, consider switching to a provider with lower base rates so you don't need to surcharge at all.
Note: This article is general information only. For specific legal or compliance advice, consult a qualified professional.
