Australia's Card Surcharge Ban: What It Means for Your Venue

What's happening

The Australian Government is banning card surcharges on consumer transactions, following RBA recommendations. Once the ban takes effect, venues will no longer be able to add a surcharge — typically 1%–2.5% — on top of the bill for customers paying by card.

What it means in dollars

If your venue currently charges a 1.5% card surcharge and processes $80,000/month in card payments, you're collecting roughly $1,200/month from customers to cover your processing fees. When the ban comes in, that $1,200 comes out of your margin instead — unless you've adjusted your pricing beforehand.

Three realistic options

1. Absorb the cost: Accept the hit to margin. This works if your processing rate is low and your margins are healthy.
2. Increase menu prices: Build the card cost into your menu pricing. A 1.5%–2% price increase across the menu is typically unnoticeable to customers and covers the fee for most venues.
3. Reduce your processing fees: Switch to a lower-cost payment provider before the ban, so the cost you're absorbing is smaller to begin with.

How to model your exposure

1. Pull your monthly card processing volume from your current POS or bank statements
2. Multiply by your current effective rate (total fees ÷ card volume)
3. That's your annual cost if you absorb it — compare it to a menu price increase scenario

Example: $60,000/month in card sales × 1.8% rate = $1,080/month = $12,960/year in fees. A 2% menu price increase on $60,000/month covers it entirely.

What Payflo customers can do now

Payflo's integrated payment reporting shows your total processing cost by month, so you can model the exact impact before the ban takes effect. If you're on a bank EFTPOS terminal with a higher rate, switching to integrated payments now reduces the amount you'll need to absorb when surcharging ends.

Cash-only is not the answer

Over 85% of Australian transactions are now card or digital. Cash-only hurts table turn times, increases handling errors, and reduces average spend. The math doesn't work for most venues.

Act before the deadline

The venues least affected will be those with low processing rates and menu prices that reflect true costs. Audit your rates now, model the impact, and adjust your pricing before the ban takes effect.

Free 30-day trial. payflo.com.au.