New credit card surcharge rules

The new credit card surcharge rules first introduced one year ago for large businesses now apply to all businesses as of 1st September 2017.

Consequently, no Australian business can now charge a credit card fee any higher than what it is being levied by its credit card providers.

If your business accepts multiple payment types, then you will have to charge different rates for:-

  • Visa and Mastercard (which we understand commonly to be 1.5% but can be often be as low as 0.9%).
  • American Express (which we understand commonly to be 3.0% but sometimes less).
  • Debit cards (which we understand commonly to be 0.5% – but we have seen reports of fees of up to 1.0%).

It is critical that you check the rates charged to you by your provider.  Westpac have printed the Cost Of Accepting Credit Card Payments on their June 2017 statements.

TIP      Make sure all your staff know so they don’t make an avoidable mistake that results in the ACCC paying you a (costly) visit.

TIP      Some businesses might find it easier to charge a set rate (being the lowest credit card rate) to avoid any mistake.

So what does this mean for those using providers such as Square, PayPal and the like? We don’t know and are currently seeking clarification.

At MRS, we will spend today planning for your success tomorrow.

At MRS, we will spend today planning for your success.