# APS Payment Readiness Tool — Full Knowledge Base Source: https://readiness.aps.business Generated: 2026-05-14T03:17:42.398Z This file contains the full markdown content of every published article on the APS Payment Readiness Tool. Intended for AI / LLM ingestion. Each article begins with YAML front-matter and is separated by `---`. For the indexed version with brief descriptions, see /llms.txt. For the per-article markdown, see /api/blog/. ═════════════════════════════════════════════════════════════ --- title: "Interchange fees explained — and what's changing in October 2026" description: "What interchange fees are, who pays them, why the RBA is cutting them, and what the October 2026 changes mean for AU merchants." category: explainer published: 2026-04-28 source: https://readiness.aps.business/blog/interchange-fee-changes-explained reading_time: 6 min --- # Interchange fees explained — and what's changing in October 2026 Interchange fees are the wholesale cost of card processing. They're dropping in October 2026. Here's what that actually means for what you pay. When you accept a card payment, the fee you pay your provider isn't just their margin — most of it is "interchange," a wholesale cost paid to the bank that issued the card. The RBA is cutting these interchange fees from October 1, 2026, and it materially changes the economics of card processing in Australia. ## What is interchange, exactly When a customer pays with a Visa or Mastercard, four parties are involved in the transaction: 1. **The customer** (paying with the card) 2. **The issuer** (the bank that gave the customer the card — e.g., CommBank, ANZ, NAB) 3. **The acquirer** (your payment provider — e.g., APS, Tyro, Square) 4. **The merchant** (you) Money flows from the customer through their issuer to the acquirer to you. At each step, fees are deducted. The biggest of those fees is **interchange** — paid by the acquirer to the issuer for handling the transaction. Your acquirer (your payment provider) bundles this interchange cost into your merchant service fee (MSF) — the percentage you see on your statement. Their margin is the difference between the MSF and the underlying interchange + scheme fees. ## What's changing in October 2026 The RBA's [Conclusions Paper (March 2026)](https://www.rba.gov.au/payments-and-infrastructure/review-of-merchant-card-payment-costs-and-surcharging/) sets new caps: | Card type | Old cap | New cap (Oct 1, 2026) | | --- | --- | --- | | Credit (Visa, Mastercard) | 0.80% | 0.30% | | Debit (Visa, Mastercard) | ~0.20% or 12c | 0.16% or 8c | | eftpos | ~5c-10c | Largely unchanged (already low) | The RBA estimates these reductions save Australian merchants approximately $910 million per year collectively. ## Will you see the savings? This is the question that matters. The interchange caps are set on the wholesale cost — what your acquirer pays. Whether your acquirer passes the saving on to you depends on your pricing structure: ### Flat-rate providers (Square, Zeller, Stripe, APS, Tyro flat plans) Likely to keep the savings as margin unless explicitly competing. The flat rate doesn't change unless they choose to change it. Watch for: providers who reduce their flat rate around October are passing savings on; providers who don't aren't. ### Interchange-plus providers (Tyro IC+, Adyen, ANZ Worldline) Pass the savings on automatically because the structure forces them to. Your "plus" margin stays the same; your interchange cost drops. This is a real reason to consider interchange-plus pricing if you're large enough to qualify (typically $100K+/month volume). ## How to make sure you capture the savings 1. **Ask your provider directly:** "Will my rate change after October 1 to reflect the new interchange caps?" If they say no, that's leverage to renegotiate. 2. **Compare quotes around October 1:** Pricing from competing providers will be sharper than usual in this period. Get 2-3 quotes. 3. **Consider a switch to APS** at 1.1% flat — already below the new interchange-plus break-even for most volumes. ## Why the RBA is doing this Two reasons in the official paper: 1. **Cost competitiveness:** AU merchant fees are among the highest in the developed world. The cuts bring them closer to international norms. 2. **Surcharge ban offset:** The interchange cuts are paired with the surcharge ban precisely so merchants have something to absorb the cost shift. The two changes were designed to offset each other. ## The combined effect on your business For most AU SMBs, the two October changes net out something like: - **Surcharge ban:** Lose 1.0%-2.0% of card revenue you were recovering. - **Interchange cut:** Save 0.2%-0.5% on processing costs (if your provider passes it on). - **Net hit:** 0.5%-1.5% margin compression unless you take action. The action that closes the gap: switch to a cheaper provider, enable least-cost routing, or both. ## Get your specific number Run the [free 60-second readiness check](/) to see how the combined changes affect your specific business, plus a comparison of 19 AU providers. ═════════════════════════════════════════════════════════════ --- title: "Bookkeepers: what your clients need to know about October 2026" description: "A reference for AU bookkeepers and accountants — the October 2026 surcharge ban changes, what to tell clients, and how to help them prepare." category: partner published: 2026-04-28 source: https://readiness.aps.business/blog/bookkeepers-october-2026-client-guide reading_time: 6 min --- # Bookkeepers: what your clients need to know about October 2026 If you're a bookkeeper or accountant serving AU SMBs, here's the briefing pack for the October 2026 surcharge ban — what changes, what to advise, and red flags to look for. If you're a bookkeeper or accountant working with Australian small businesses, the October 2026 surcharge ban is a topic your clients will be asking about — or should be. This is a quick reference you can use directly with clients, plus the red flags to watch for in their statements. ## The 60-second client briefing For each affected client, the situation is: 1. From October 1, 2026, surcharges on eftpos, Visa, and Mastercard payments are banned. 2. The cost moves from the customer to the merchant — your client. 3. Interchange fees are also dropping (credit 0.8% → 0.3%, debit to 8c or 0.16%) which softens the blow but doesn't eliminate it. 4. Most affected merchants need to either raise prices or switch to a cheaper payment provider. Doing nothing means absorbing the full cost. ## What to look for in a client's statements ### Effective merchant service fee (MSF) rate This is the most useful single number. Calculate it as: effective rate = (total fees ÷ total card volume) × 100 Pull the last 3 months of statements, sum the fees, divide by the total volume, multiply by 100. Anything above 1.4% is a candidate for renegotiation. Anything above 1.8% is overpaying significantly. ### Surcharge revenue line Most modern merchant statements include a "surcharge revenue" or "surcharge recovery" line — the amount the client recovered from customers. After October 1, this number goes to zero. Multiply by 12 to show the client their annual exposure. ### Hidden fees Headline rates lie. Check for: - Monthly account / service fees ($20-$80/month is common) - Terminal rental fees ($30-$50/month) - PCI compliance fees ($10-$30/month) - Per-transaction fees (10-30 cents on top of the percentage) - Statement fees, paper-statement fees, "support" fees The all-in cost is what matters for advising the client. APS is unusual in offering 1.1% flat with no monthly fees, no terminal cost, and no add-ons. ### Card mix If your client's statement breaks down debit vs credit vs eftpos, look at the eftpos %. If eftpos is below 30% but tap-to-pay debit is high, they likely don't have least-cost routing enabled — which is a 0.2% saving they're leaving on the table. Tell them to ask their provider to enable LCR. ## The conversation to have with your client Five questions to ask each affected client this quarter: 1. **Do you currently surcharge?** If yes, calculate the dollar revenue they'll lose in October. 2. **What's your effective rate?** Calculate from their last statement. If above 1.4%, recommend a comparison. 3. **Have you reviewed your provider in the last 12 months?** If no, they're almost certainly overpaying. 4. **Is least-cost routing enabled?** If they don't know, recommend they call their provider and ask. 5. **Have you planned how you'll handle the cost from October?** Three options: absorb, raise prices, switch provider. Help them pick one. ## The tools to use - **The [readiness tool](/)** — 60-second assessment that calculates exposure and produces a 90-day plan. You can run it with the client over Zoom. - **The [rate comparison tool](/lp/rate-comparison)** — side-by-side comparison of 19 AU providers based on the client's actual volume. - **APS direct line: [1300 096 983](tel:1300096983)** — for clients who want a no-obligation rate review. APS is generally the cheapest flat-rate option in the Australian market. ## Red flags in older provider contracts Some clients will have signed contracts 3-5 years ago when rates were higher. Watch for: - **Fixed-term contracts with early-termination fees.** Some bank-issued terminals lock in for 3 years with $500-$1,500 exit fees. Worth checking before recommending a switch. - **Pricing tiers that haven't reset.** Some providers tier pricing — e.g., "1.4% on the first $20K, 1.6% on the next $30K." If the client's volume has grown, they may be paying higher tiers than necessary. - **Bundled pricing with hidden margin.** Bank-bundled merchant terminals often roll the cost into the broader business-banking relationship. The "convenience" can cost 0.3%-0.6%. ## Get a partner relationship with APS If you regularly refer clients to payment providers, APS has a partner program for accountants and bookkeepers. Refer a client, they get a free assessment, you get a referral commission. Call [**1300 096 983**](tel:1300096983) to ask about it, or send your clients straight to [readiness.aps.business](https://readiness.aps.business). ═════════════════════════════════════════════════════════════ --- title: "Hair & beauty: surcharge ban survival guide for salons and clinics" description: "Hair salons, beauty clinics, nail bars — what the October 2026 surcharge ban means for service-based businesses with appointment-based revenue." category: industry-guide published: 2026-04-28 source: https://readiness.aps.business/blog/hair-beauty-surcharge-ban-survival-guide reading_time: 5 min --- # Hair & beauty: surcharge ban survival guide for salons and clinics Service-based businesses face a different shape of the surcharge ban problem. Here's the hair, beauty, and clinic-specific approach. Hair salons, beauty clinics, nail bars, and similar service-based businesses face a distinct version of the October 2026 surcharge problem: bigger ticket sizes than hospitality, more loyal customer bases than retail, and stronger pricing power than either. ## The shape of the problem in hair & beauty - **Ticket sizes are large.** Cuts are $60-$120, colour services run $200-$400, and treatments often hit $300+. A 1.5% surcharge on a $300 colour is $4.50 — visible but absorbable. - **Customers are loyal.** Salon and clinic customers usually have a personal relationship with their stylist or therapist. They're less price-sensitive than walk-in customers. - **Bookings come in advance.** Most service revenue is pre-booked, often with a deposit. This gives you visibility and pricing flexibility most other industries don't have. - **Card mix is high.** 90%+ of payments are by card; almost no cash. The surcharge ban removes a meaningful revenue line. ## Three levers that work specifically in hair & beauty ### 1\. Renegotiate your rate before October Service businesses often pay above-market rates because they signed up early and never re-shopped. If your effective rate is above 1.4%, you're overpaying. Get a comparison and negotiate. APS offers 1.1% flat with $0 terminal cost — for most salons, that's a $200-$600/month saving. ### 2\. Update your service pricing in 5-10 dollar increments Service pricing isn't price-sensitive in the same way hospitality is. Salon clients don't compare cuts price-per-cut the way coffee buyers compare cafés. A bump from $95 to $99 or $98 is rarely noticed. Across your service menu, those increments more than cover the absorbed cost. ### 3\. Tier your loyalty pricing Most salons already have informal "regular" vs new-customer pricing. Formalise it. Hold loyal clients at current prices, raise new-customer pricing by the cost of the surcharge ban. This protects the relationship and recovers cost simultaneously. ## Deposit handling — the one place this gets tricky If you take deposits on bookings, those deposits get hit by card processing fees both today (your provider's fee) and from October (no surcharge to recover). For high-deposit operators — bridal hair, advanced colour bookings, multi-session treatment plans — this adds up. Two options: - **Move to a flat-rate provider** with no per-transaction fees so deposit fees scale predictably. APS, Square, and Zeller all work for this. - **Adjust your booking-deposit structure** to account for the fee. If you take a $50 deposit, charge $52 to absorb the typical fee. ## Online bookings + Square/Zeller integrations Many salons use Square or Zeller because their booking software integrates natively. That convenience is real but costs you a higher rate (~1.5%-1.6% vs APS's 1.1%). For a $60K/month salon, that's roughly $300/month — $3,600/year — paid for booking integration. Worth comparing whether the integration is worth $3,600/year or whether you'd rather take the savings and use a separate booking tool. Most salons running this comparison decide to switch. ## The 60-day plan for hair & beauty 1. **This week:** Run the [readiness check](/) to get your specific exposure. 2. **Weeks 2-3:** Pull last 3 statements, calculate your effective rate, get APS + one other comparison quote. 3. **Weeks 4-6:** Decide: switch provider or stay + renegotiate. Update your service pricing. 4. **Weeks 7-8:** Roll out new pricing (announce to clients via email — emphasise quality + investment in the salon, not the surcharge ban itself). 5. **September:** Disable surcharging on terminal, confirm online booking deposit handling is correct. ## Get your specific plan The [free 60-second readiness check](/) handles the maths. Or call APS on [**1300 096 983**](tel:1300096983) for a hair-and-beauty-specific assessment. ═════════════════════════════════════════════════════════════ --- title: "Retail merchants: surcharge ban survival guide" description: "Boutique retail, specialty stores, and chains — what the October 2026 surcharge ban means for retail and how to prepare." category: industry-guide published: 2026-04-28 source: https://readiness.aps.business/blog/retail-surcharge-ban-survival-guide reading_time: 6 min --- # Retail merchants: surcharge ban survival guide Retail-specific playbook for the October 2026 surcharge ban. Margin protection, pricing tactics, and what to negotiate with your provider. Retail merchants — boutiques, specialty stores, chains — are mid-exposure to the October 2026 surcharge ban. Higher transaction values than hospitality means a percentage move costs more in absolute terms, but lower transaction frequency and more pricing flexibility means more room to manage it. ## Why retail is different from hospitality - **Bigger ticket sizes.** Average retail transaction in AU sits around $40-$80, vs $15-$25 in hospitality. A 1.5% surcharge on a $60 sale is 90 cents — visible, but absorbable. - **More credit-card volume.** Retail sees 30-45% credit-card payments vs hospitality's 15-20%. Credit cards cost more to process, so retail's effective rate tends to be higher. - **Pricing flexibility.** Retail has more freedom to adjust prices than hospitality does. The "round up to the nearest dollar" tactic works on a $79 item; it's harder on a $4.50 coffee. ## The retail-specific play ### Renegotiate aggressively before October Retailers have leverage right now. Providers know the surcharge ban will trigger merchant churn — they're more open to discounts in the months leading up to it than they will be after. If your effective rate is above 1.4%, get 2-3 competing quotes and use them. Most retail merchants find **$300-$1,000/month in savings** just by switching to a flat-rate provider like APS (1.1% flat, no terminal cost, no monthly fee). ### Push for interchange-plus if your volume is high If you do over $100K/month in card volume, ask your provider about interchange-plus pricing. The new lower interchange caps (0.3% credit, 0.16% debit) make this structure significantly cheaper than flat-rate for high-volume merchants. Most providers will offer it if you ask — they don't volunteer it because flat-rate has more margin for them. ### Use the price-anchor opportunity Retail customers expect price changes around end-of-financial-year and early in the new financial year. October is right in that window. Move prices in October, attribute it to general cost increases (which are real — wages and rent are up), and skip the awkward "new card surcharge" conversation entirely. ## Pricing tactics that work in retail - **Charm pricing.** $79 is meaningfully different from $80 in customer perception. A $79 item bumped to $79.95 captures the cost without breaking the price-tier. - **Bundle adjustments.** Move bundle prices up by 2-3% rather than individual SKU prices. Customers compare per-item less critically in bundles. - **Premium-tier movement.** Move your premium products' prices up first — those buyers are less price-sensitive. Hold entry-level pricing flat for one quarter while you test demand. - **Member / loyalty pricing.** Loyalty-program members can get held at the old prices. New customers see the new prices. Reduces public price-perception while still recovering most of the cost. ## What about online retail? The ban applies to online card surcharges too. If your e-commerce checkout currently adds a card surcharge, that has to come off on October 1. The good news: online retail has a much easier time absorbing this because Stripe / Adyen / similar online-first providers tend to have better effective rates than in-store providers (1.7%-2.0% online vs 1.4%-1.8% in-store typical for the same provider). ## The 90-day retail plan 1. **This week:** Run the [readiness check](/). Pull last 3 months of statements. Calculate your effective rate. 2. **Weeks 2-4:** Get 2-3 competing quotes. Tell your current provider you're shopping. Negotiate. 3. **Weeks 4-8:** Make the switch (or hold) decision. If switching: order terminals, plan the cutover for early September. 4. **September:** Roll out price adjustments. Update price tags / online listings / signage. 5. **October 1:** Disable surcharging on terminals. Confirm online checkout has been updated. ## Get your specific numbers The [free 60-second readiness check](/) gives you your retail-specific exposure plus a side-by-side comparison of 19 AU providers. Or call APS on [**1300 096 983**](tel:1300096983) for a free retail assessment. ═════════════════════════════════════════════════════════════ --- title: "Hospitality merchants: surcharge ban survival guide" description: "Cafés, pubs, restaurants — the October 2026 surcharge ban hits hospitality hardest. Here's what to do." category: industry-guide published: 2026-04-28 source: https://readiness.aps.business/blog/hospitality-surcharge-ban-survival-guide reading_time: 7 min --- # Hospitality merchants: surcharge ban survival guide High volume, thin margins, and a surcharge ban hitting in 5 months. Here's the hospitality-specific playbook for the October 2026 RBA changes. Hospitality is the industry hit hardest by the October 2026 surcharge ban — high card-payment volumes, thin margins, and a customer base that pays predominantly by tap. If you run a café, pub, restaurant, or bar, here's a hospitality-specific playbook. ## Why hospitality is the hardest hit Three factors compound to make hospitality particularly exposed: - **High card mix.** Most hospitality venues see 80%+ of payments by card. The surcharge ban removes the ability to recover any of that cost. - **Thin operating margins.** Industry-typical hospitality margins sit at 6-12% pre-tax. Absorbing a 1.5% surcharge wipes out 15-25% of profit. - **Price sensitivity.** A coffee priced 30 cents higher feels different than a $40 dinner priced $1 higher. Hospitality has less room to absorb costs through pricing than other industries. The good news: hospitality is also the easiest industry to optimise. The combination of high volume + simple transactions + tap-to-pay dominance means small rate improvements compound fast. ## Your three levers ### 1\. Get your effective rate down Most hospitality venues are paying 1.4%-2.2% all-in on card processing. Anything above 1.4% is renegotiable, and most flat-rate providers will offer a discount to keep your business in the lead-up to October. The biggest single move: [compare your current rate](/lp/rate-comparison) against the 19 major AU providers based on your actual volume. Most venues find $400-$1,200/month in unrealised savings. ### 2\. Enable least-cost routing (LCR) Almost every hospitality merchant accepts tap-to-pay debit. Without LCR, those debit transactions route over Visa or Mastercard's network, costing roughly 1% per transaction. With LCR enabled, they route over eftpos, costing roughly 0.2%. On a typical hospitality merchant doing $50K/month with 60% debit, that's **$240/month saved** by flipping a switch your provider has to enable. Ask them — most won't enable it unless you ask. ### 3\. Adjust pricing strategically Hospitality has more room than you'd think to nudge prices in October. The trick is to move them in groups, not flat-line: - Move signature items (most-ordered) by 50 cents to $1, not 1.5% - Round drink prices up to the next dollar where it makes sense - Raise weekend / peak prices but leave weekday lunch specials untouched - Move banquet / function pricing up by 2-3% (less price-sensitive than walk-in) ## Hospitality-specific gotchas ### Tipping is unaffected — but tip flow may not be The ban is on surcharges, not tips. Tips you pass to staff still flow as before. But: if your provider's tip-handling has been quirky, October is a good moment to clean it up. Same-day settlement (offered by APS and a few others) gets tips into your account that night instead of 1-3 days later — important for staff cash flow. ### Function deposits + bookings If you take function deposits via card, those incur surcharges today. After October, the deposit cost goes to you. For high-deposit operators (weddings, large events), that's a noticeable hit — re-price function packages to absorb it. ### Delivery platforms — different rules Uber Eats, DoorDash, and Menulog have their own commission structures, separate from card surcharges. Those don't change in October. Your in-platform card processing is bundled into their commission and isn't affected by the RBA ban. ## The 90-day plan | When | What | | --- | --- | | This week | Run the hospitality readiness check to get your dollar exposure. Pull your last 3 statements and calculate your actual effective rate. | | Weeks 2-3 | Enable least-cost routing with your current provider. Get 2-3 competing quotes. Negotiate. | | Weeks 4-6 | If switching providers: order new terminals, schedule the cutover. Plan the price adjustments you'll make in October. | | Weeks 7-10 | Test pricing changes on a subset of items. Watch volume + margin closely. Tune. | | Sept 1-30 | Disable surcharging on your terminal. Roll out final pricing. Update menus / signage. | | Oct 1 | Surcharge ban active. You're prepared. | ## Get your specific plan The [hospitality readiness check](/lp/hospitality) is built specifically for cafés, pubs, restaurants, and bars. 60 seconds, your dollar exposure, your tailored 90-day plan emailed to you. Or call APS directly on [**1300 096 983**](tel:1300096983) for a free assessment of your venue. ═════════════════════════════════════════════════════════════ --- title: "Tyro vs Square vs APS vs Zeller — 2026 EFTPOS rates compared" description: "Side-by-side comparison of Australia's biggest payment processors. See which is cheapest for your monthly volume in 2026." category: comparison published: 2026-04-28 source: https://readiness.aps.business/blog/tyro-vs-square-vs-aps-rates-compared reading_time: 8 min --- # Tyro vs Square vs APS vs Zeller — 2026 EFTPOS rates compared Tyro, Square, Zeller, APS, Stripe — all advertise different headline rates. Here's how they actually compare for typical AU SMB volumes in 2026. Picking a payment provider in Australia is harder than it should be. Tyro, Square, Zeller, APS, Stripe, CommBank — they all advertise different rates, structures, and "no fees" promises. Below is a straight comparison of the biggest providers for AU SMBs in 2026, including the gotchas the marketing pages don't mention. ## The headline rates | Provider | In-store rate | Monthly fees | Terminal cost | Lock-in | | --- | --- | --- | --- | --- | | APS | 1.1% flat | $0 | $0 | No | | Square | 1.6% in-person | $0 | $59-$429 one-off | No | | Zeller | 1.5% flat | $0 | $229 one-off | No | | Tyro | 1.4% - 2.4% (negotiated) | $29-$79 | $30-$50/mo rental | Variable | | Stripe | 1.7% in-person | $0 | $59 one-off | No | | CommBank Smart | 1.1% - 1.5% (negotiated) | $22-$66 | ~$30/mo rental | Variable | *Rates as of April 2026, sourced from each provider's published pricing pages. Negotiated rates apply where stated — actual rates depend on your volume and category.* ## What the headline rates hide ### Square — looks simple, has hidden costs at scale Square's 1.6% is genuinely flat with no monthly fee — clean for low volumes. But there's no scaling discount: at $100K/month volume, you're paying $1,600/month in card fees. Bigger merchants outgrow Square fast. ### Zeller — strong product, mid-tier pricing Zeller's hardware is excellent and the dashboard is best-in-class. But 1.5% flat with no negotiation means you pay the same whether you do $5K or $500K/month. Good for cafés up to ~$30K/month; gets expensive after that. ### Tyro — negotiated, varies wildly Tyro doesn't publish flat rates because they negotiate per merchant. A small café might be quoted 2.2%; a larger pub might land at 1.4%. Worth comparing your actual quote against alternatives — Tyro often loses on transparent comparison. ### Stripe — built for online, expensive in-person Stripe's online rates are competitive (1.7% online for AU cards). In-person rates aren't their focus and reflect that. If most of your volume is in-store, Stripe is rarely the cheapest. ### CommBank Smart — bank-bundled, often overpriced CommBank's "Smart" terminal sits within the broader business-banking relationship. Rates are negotiable but typically settle higher than independent providers. The convenience of "all with one bank" is real but costs roughly 0.2% to 0.6% per transaction. ### APS — the flat-rate alternative APS offers 1.1% flat across the board with no monthly fee, no terminal cost, and no lock-in contract. The economics work for the provider because of operational efficiency and a focus on AU SMBs specifically. For most merchants in the $20K-$200K monthly volume range, APS is the cheapest of the listed options. ## Worked examples Same monthly volume of $50,000, different providers: | Provider | Card fees | Monthly fee | Terminal | Total/mo | | --- | --- | --- | --- | --- | | APS | $550 | $0 | $0 | $550 | | Zeller | $750 | $0 | ~$10 amortised | $760 | | Square | $800 | $0 | ~$5 amortised | $805 | | Tyro (mid-tier) | $900 | $49 | $40 | $989 | | CommBank Smart | $650 | $44 | $30 | $724 | The annual difference between APS and Tyro at this volume: **~$5,268/year**. That's a real number that compounds. ## How to pick the right provider - **Volume under $20K/month:** Square or Zeller — simple flat rates, no surprises. - **Volume $20K-$200K/month:** APS is usually cheapest. Negotiate hard with Tyro or CommBank if you want to compare. - **Volume above $200K/month:** Interchange-plus pricing from Tyro, ANZ Worldline, or Adyen typically wins. Get a custom quote. - **Online-heavy:** Stripe's online rates are excellent. Pair with APS for in-person if you have both channels. ## Bottom line For most AU SMBs in the $20K-$200K monthly range, APS is the cheapest of the major providers when you account for total cost (not just headline rate). It's worth a 15-minute call to find out your specific numbers — [**call 1300 096 983**](tel:1300096983) or run the [free comparison tool](/lp/rate-comparison) to see exact savings for your volume. ═════════════════════════════════════════════════════════════ --- title: "How much will absorbing card fees cost your business in 2026?" description: "After the October 2026 surcharge ban, you'll absorb card processing costs you currently pass to customers. Here's how to estimate the dollar impact." category: explainer published: 2026-04-28 source: https://readiness.aps.business/blog/how-much-card-fees-cost-2026 reading_time: 5 min --- # How much will absorbing card fees cost your business in 2026? Once surcharges are banned in October 2026, every dollar of card-processing cost comes out of your margin. Here's how to estimate the bite. If you surcharge today, you're already passing your card processing cost to your customers. After October 1, 2026, you can't. Here's how to work out exactly how much that change costs your business — and what to do before it lands. ## The simple formula Your monthly absorbed cost equals: **Card volume × your effective rate** Your **effective rate** is the percentage of every dollar that goes to your card payments provider. You can find it on your latest merchant statement — divide total fees by total card volume and multiply by 100. Most Australian SMBs have effective rates between **1.0% and 2.5%**. The variance is huge. Two cafés down the road from each other doing identical volume can pay $400/month vs $1,200/month — same business, different provider. ## Worked examples | Business type | Monthly volume | Effective rate | Absorbed/mo | Absorbed/yr | | --- | --- | --- | --- | --- | | Small café | $25,000 | 1.6% | $400 | $4,800 | | Hair salon | $40,000 | 1.4% | $560 | $6,720 | | Mid-size pub | $80,000 | 1.8% | $1,440 | $17,280 | | Specialty retailer | $120,000 | 2.1% | $2,520 | $30,240 | ## Why your effective rate matters more than your headline rate Providers love advertising "1.1% flat" or "no monthly fee" — but the headline rate often hides terminal rentals, monthly account fees, scheme fees, and per-transaction charges that push your real cost higher. The right number to negotiate on is always your **effective rate** — the percentage you actually pay all-in on every dollar of card volume. Get the last 3 months of statements, sum the total fees, divide by total card volume, multiply by 100. That's your real number. ## The interchange cut softens the blow The same October 1 changes also reduce interchange — the wholesale fee your provider pays to the bank that issued the card. Credit interchange drops from 0.8% to 0.3%, and debit drops to 8 cents or 0.16%. The RBA estimates this saves merchants roughly $910 million per year collectively. **The catch:** providers don't have to pass this saving on. Whether you see it depends on your contract. Most flat-rate providers will quietly keep the interchange savings as margin unless pushed. Most interchange-plus providers will pass it on automatically because the structure forces it. Translation: if your provider is on a flat rate, October is a good moment to renegotiate. ## How to cut your absorbed cost 1. **Get on the right provider for your volume.** Smaller volumes (under $20K/month) usually do best on simple flat-rate providers like Square or Stripe. Larger volumes ($50K+) often save with interchange-plus providers. Run the [rate comparison](/lp/rate-comparison) to see your numbers. 2. **Enable least-cost routing (LCR).** If you accept tap-to-pay debit cards, ask your provider to enable least-cost routing — it routes the transaction over the cheapest network (usually eftpos), saving roughly 0.2% on average. 3. **Negotiate the surcharge-ban moment.** Tell your provider you're shopping. Most will offer a rate cut to keep you. The bigger your volume, the more leverage you have. 4. **Compare APS.** APS offers a flat 1.1% rate, $0 terminal, same-day settlement, and no lock-in. For most AU SMBs, the math is favourable. [Call **1300 096 983**](tel:1300096983) for a free assessment. ## Get your number Run the [free 60-second readiness check](/) to get your specific dollar exposure, plus a side-by-side comparison of 19 AU providers based on your actual volume. ═════════════════════════════════════════════════════════════ --- title: "The October 2026 RBA surcharge ban, explained for Australian businesses" description: "From October 1, 2026, AU merchants can no longer surcharge eftpos, Visa, or Mastercard payments. Here's what changes, what it costs, and what to do." category: explainer published: 2026-04-28 source: https://readiness.aps.business/blog/october-2026-surcharge-ban-explained reading_time: 6 min --- # The October 2026 RBA surcharge ban, explained for Australian businesses From October 1, 2026, you can no longer pass card processing fees to your customers via a surcharge. Here's exactly what changes and how to prepare. From **October 1, 2026**, Australian businesses can no longer charge customers a surcharge for paying with eftpos, Visa, or Mastercard. The Reserve Bank of Australia (RBA) finalised the rules in its [March 2026 Conclusions Paper](https://www.rba.gov.au/payments-and-infrastructure/review-of-merchant-card-payment-costs-and-surcharging/). If you currently surcharge — and most AU SMBs do — this guide walks through what's changing, the dollar impact, and your options. ## What's actually changing Three things, all taking effect simultaneously on October 1, 2026: - **Surcharges on eftpos, Visa debit, Visa credit, Mastercard debit, and Mastercard credit are banned.** Adding any percentage on top of these payments is no longer allowed. - **Interchange fees are being reduced.** Credit-card interchange drops from 0.8% to 0.3%; debit-card interchange drops to either 8 cents or 0.16% of the transaction, whichever is lower. The RBA estimates this saves Australian merchants roughly $910 million per year. - **American Express is not in scope.** Surcharges on Amex are still permitted under the new rules. The combined intent is consumer protection: the RBA estimates Australian shoppers will collectively save about $1.6 billion per year from eliminated surcharges. The cost moves from consumers to merchants, partly offset by the lower interchange caps. ## What it costs your business The dollar impact depends on three numbers: 1. Your monthly card volume 2. Your current surcharge rate (if you surcharge today) 3. Your effective merchant service fee (MSF) — what your provider charges you For a typical AU café doing $50,000/month in card payments at a 1.5% surcharge: - **Monthly surcharge revenue lost:** $750/month - **Annual surcharge revenue lost:** $9,000/year That figure has to come from somewhere — either you absorb it (cutting margins), raise your prices to compensate, or negotiate a lower rate with your provider so the absorbed cost is smaller. For a quick personalised estimate, run the [free 60-second readiness check](/) — it asks for your monthly volume and current surcharge rate, then calculates your exposure in dollars. ## Your three options after October 1 ### Option 1: Absorb the cost Your prices stay the same; your margin shrinks. Simplest, but the most expensive long-term. The lower interchange caps soften the blow but don't eliminate it. This is the right path if your prices are already at the top of what your market will bear. ### Option 2: Adjust your prices A small across-the-board increase covers the absorbed cost. For the café above, raising prices by 1.5% offsets the loss. Customers don't see a separate surcharge line — the cost is rolled into the menu price. This is the most common path for hospitality and retail. ### Option 3: Negotiate a lower rate Most Australian SMBs overpay $400 to $1,200 per month on card processing without realising it, partly because they signed contracts when rates were higher and never re-negotiated. If your effective rate is above 1.4%, there's almost certainly a cheaper provider for your volume. The reduced interchange caps mean providers' costs are dropping too — push them to pass the savings on. ## What to do this week 1. **Run the readiness check.** 60 seconds, gives you your dollar exposure plus a 90-day plan. [Start here](/). 2. **Review your current provider's rate.** Check your last statement for the effective rate (total fees ÷ volume × 100). Anything above 1.4% is a candidate for renegotiation. 3. **Get a comparison.** Compare your current rate against the 19 major AU providers using volume-weighted pricing — see the [rate comparison tool](/lp/rate-comparison). 4. **Decide your pricing strategy** for October. Don't wait until September — give yourself 4-6 weeks to test a price adjustment if that's the path you choose. ## Common questions ### Does the ban apply to American Express? No. Surcharges on Amex are still permitted. Some merchants are considering accepting Amex only with a surcharge to recover costs, but Amex's higher base fees often make this less attractive than it looks. ### What about online payments? The ban applies to in-person and online card payments equally. If you currently surcharge in your e-commerce checkout, that has to stop on October 1. ### Can I add a "card payment fee" instead of a "surcharge"? No. The ban is on the practice of charging more for card payments — the wording on the receipt doesn't matter. ### What if I just stop accepting cards? You can. But Australian consumer behaviour is overwhelmingly card-first — going cash-only typically loses more revenue than it saves on fees. The smarter move is to get your card-acceptance costs down to a level you can absorb. ## Get your personalised plan The October ban is in 5 months. The cheapest way to find out what it costs your specific business — and what to do about it — is the [free 60-second readiness check](/). It pulls your numbers, compares 19 AU providers, and emails you a 90-day action plan tailored to your situation. Or call APS directly on [**1300 096 983**](tel:1300096983) for a no-obligation conversation about your options.