The Benefits of Surcharging for Australian Businesses

The Benefits of Surcharging for Australian Businesses

In the ever-evolving world of business, surcharging has become a hot topic, especially in the Australian market. But what exactly is surcharging, and how can it benefit your business? Let’s dive into the details.

What is Surcharging?

Surcharging is the practice of adding a nominal fee to a customer’s bill when they pay using a credit or debit card. This fee helps cover the transaction costs that businesses face when processing card payments. Surcharging can be applied to both in-person, online and remote transactions, and the amount can be set as a fixed value or a percentage of the total transaction up to the cost of acceptance.

Benefits of Surcharging

  1. Lowering Processing Costs: Credit card fees can range from 1%-4%, and these costs can accumulate rapidly. Surcharging enables businesses to pass on these fees to customers, lessening the financial strain.
  2. Keeping Prices Competitive: By implementing surcharging, businesses can maintain competitive product or service prices without absorbing the extra costs of card processing.
  3. Transparency with Customers: Properly executed surcharging ensures complete transparency with customers. They are informed of the surcharge before the transaction occurs, giving them the option to accept or pay by another method where there is no surcharge (Cash / Bank Transfer etc).
  4. Customisation: Businesses can establish different surcharges for various payment methods, such as EFTPOS, Visa, American Express, or Diners Club, adapting the approach to their unique needs or cost of acceptance.

Alternatives to Surcharging

If surcharging doesn’t align with your business model, other options such as increasing product prices or setting a minimum amount for paying with a credit card can be explored.


Surcharging can be a powerful tool for Australian businesses looking to reduce costs and maintain competitive pricing. QikiPay will help keep you informed of adherence to Australian surcharging laws. By understanding the benefits, drawbacks, and alternatives, businesses can make an informed decision on whether surcharging is the right strategy for them.

For more information on compliance with surcharging rules in your jurisdiction, consult a professional advisor or refer to the RBA’s website.

References & Links

RBA – Card payment regulations explained 

ACCC – Merchant and consumer information

Australian Taxation Office – GST and surcharging 

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