The Australian Competition and Consumer Commission (ACCC) is calling on small and medium enterprises (SMEs) to review their card payment surcharges to ensure compliance with legal requirements.
The ACCC is emphasizing that surcharges must align with the actual cost of accepting card payments, known as the ‘cost of acceptance,’ and that businesses must clearly disclose these fees upfront to customers.
As part of its 2025-26 compliance and enforcement priorities, the ACCC is targeting misleading surcharging practices and other add-on costs. “Businesses need to ensure their customers know about any card payment surcharges upfront, and that they are only charging what it costs them to accept those card payments,” said ACCC Deputy Chair Mick Keogh.
Clear disclosure rules for SMEs
Under the Australian Consumer Law, businesses are prohibited from misleading customers about pricing. Additionally, the Competition and Consumer Act bans excessive card payment surcharges. A surcharge is deemed excessive if it exceeds the business’s cost of acceptance. For instance, if a business’s cost of acceptance for Visa credit card payments is 1 per cent, it can only charge up to a 1 per cent surcharge for customers using that payment method.
To support compliance, the ACCC has launched an education and compliance campaign aimed at SMEs. The campaign includes updated guidance material, advertisements, and collaboration with industry representatives to help businesses understand their obligations. The ACCC is also encouraging businesses to consult their bank, payment facilitator, accountant, or business advisor to accurately calculate their cost of acceptance.
The ACCC will actively monitor compliance and may take enforcement action where necessary, in line with its Compliance and Enforcement Policy. “We understand that small businesses need to be across a lot of information to comply with all of the laws that apply to their business, however, charging excessive surcharges and not being upfront with customers about pricing can result in small businesses losing customers,” Mr Keogh said.
The cost of acceptance, as defined by a Reserve Bank of Australia (RBA) standard, includes merchant service fees and other permissible costs, which businesses can verify through contracts, statements, or invoices from their providers. These costs vary between businesses, meaning surcharges may differ accordingly. Businesses can access further details on the ACCC website or the RBA website, which provides information on calculating the cost of acceptance.
SMEs are urged to act now to review their surcharging practices to avoid potential penalties and maintain customer trust.
The Reserve Bank of Australia is currently finalising a Review of Retail Payments Regulation – Merchant Card Payment Costs and Surcharging
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