Blog

Australia Card Surcharge Compliance Pricing Guide (2026): Protect Margin Without Breaking the Rules

A practical 2026 guide for Australian cafes and restaurants to set compliant card surcharges, avoid overcharging risk, and plan for policy changes.

australia card surchargecost of acceptancerestaurant pricingacccpayment feesaustralia

On this page

Many cafes charge a card surcharge and still lose money. Others cover costs but create compliance risk.

The difference is whether surcharge policy is based on real acceptance cost data, not guesswork.

Quick Summary

ACCC guidance says card surcharges must not exceed cost of acceptance
If no surcharge-free payment method exists, displayed pricing must account for surcharge
RBA review materials continue to examine surcharge outcomes and potential reform directions
Best practice: card-type cost mapping, capped surcharge matrix, monthly review

Why this matters for small operators

Card usage is high, margins are tight, and “just add 1.5%” is common. But if acceptance costs differ by card type, one blunt surcharge can overshoot for some transactions.

That creates two problems:

compliance exposure
customer trust damage

Both are expensive.

The compliance formula

For each payment type:

Maximum compliant surcharge rate <= Cost of acceptance rate

And if you want to quantify potential oversurcharge risk:

Potential overcharge dollars =
  (Applied surcharge rate - Acceptance cost rate)
  x Card sales volume

If the first term is positive, fix your matrix immediately.

Worked example

Monthly card sales:

Debit network volume: AUD 42,000
Credit card volume: AUD 58,000

Actual acceptance costs:

Debit: 0.7%
Credit: 1.3%

If the business applies one flat 1.5% surcharge:

Debit overcharge exposure:

(1.5% - 0.7%) x 42,000 = 0.8% x 42,000 = AUD 336

Credit overcharge exposure:

(1.5% - 1.3%) x 58,000 = 0.2% x 58,000 = AUD 116

Total monthly overshoot exposure: AUD 452

Better setup:

Debit surcharge at or below 0.7%
Credit surcharge at or below 1.3%

Display-price rule operators miss

If every available payment method carries a surcharge, ACCC guidance indicates the business should include surcharge in displayed prices.

Practical fix:

confirm if any surcharge-free payment path exists
if none, update displayed menu pricing logic
sync signage, POS, and online ordering copy

Policy watch for 2026

RBA review work in 2024-2025 has assessed merchant card costs and surcharge outcomes, including consultation on reform options. Treat this as a watchlist item:

check official updates quarterly
avoid hard-coding long-term surcharge assumptions without policy review

Checklist

Acceptance cost by card type documented
Surcharge matrix capped by payment type
Display-price rule checked for surcharge-free options
POS + menu + online wording aligned
Quarterly policy-watch review added

Sources (checked on 2026-02-14)

Frequently Asked Questions

Can Australian restaurants surcharge card payments?

Yes, but surcharge amounts generally must not exceed the business's cost of acceptance for that payment type.

What if there is no surcharge-free payment option?

ACCC guidance says the displayed price should include the surcharge amount when no surcharge-free method is available.

How do I calculate a compliant surcharge?

Use your actual cost of acceptance by payment method and cap surcharge at or below that level.

Should one surcharge rate apply to every card type?

Not always. Different payment methods can have different acceptance costs, so one flat rate can create compliance risk.

Do policy changes in card regulation matter for 2026 planning?

Yes. RBA review work has examined surcharge outcomes, so operators should monitor official updates before locking long-term assumptions.

Try it free — calculate your first recipe cost

Enter your ingredient prices and get recipe costs, margins, and selling prices instantly.

Get started free