Payment surcharging is the practice of adding an extra fee to a purchase when the customer chooses a particular payment method, usually a credit or debit card. It is intended to help a business recover the cost of accepting that payment type.
In Australia, the rules on surcharging are set by the Reserve Bank of Australia (RBA) and enforced with the Australian Competition and Consumer Commission (ACCC). Broadly, a surcharge must not exceed what it costs the business to accept the card, and it must be clearly disclosed. Because regulations and the card schemes' rules can change, businesses should check the latest guidance from those bodies rather than rely on old advice.
In practice, merchants configure the surcharge in their POS or payment terminal so it is calculated and displayed automatically. Hospitality venues often apply it to specific card types or on particular days such as public holidays, with the terminal or receipt showing the amount.
Key considerations include working out your actual cost of acceptance, displaying the surcharge clearly before the customer pays, applying it consistently, and keeping records. Poor signage or a surcharge that is higher than allowed can lead to complaints or regulatory action, and some customers will switch to another payment method or business.
Surcharging matters because card fees are a real operating cost, but handling it badly erodes trust. RetailCare can help configure POS and RetailCarePAY terminals to show surcharges correctly, while businesses remain responsible for confirming current rules.