Understanding EFTPOS Fees in Australia: What You're Actually Paying For
A plain-language breakdown of how EFTPOS fees work in Australia: interchange, scheme fees, merchant service fees, blended rates, and interchange-plus explained for hospitality and retail operators.
Most Australian business owners have a rough sense of their EFTPOS fees. They see the rate on their original application form, or they remember a figure from a conversation with their bank two years ago. What they rarely know is what that rate actually covers, or whether it still reflects what's on their monthly statement.
That gap, between what you think you're paying and what you're actually paying, is where most EFTPOS overpayments live.
Understanding EFTPOS fees in Australia starts with knowing what that headline rate actually covers. This guide breaks it down: the three layers of cost, the difference between fee structures, what to look for on your merchant statement, and what "good" looks like for a venue your size. No jargon, no sales pitch. Just what you need to know to make a sensible decision before October 2026.
About this guide
HEFTE provides educational content about EFTPOS in Australia. We earn a referral fee from some of the providers listed on this site if you choose to switch through our quiz, calculator or compare tools. This commercial relationship does not change the information presented in our guides, but you should know it exists. We recommend confirming any rate or feature directly with the provider before signing.
The three layers of every EFTPOS transaction
Every time a customer taps their card at your terminal, three separate parties take a cut before the money arrives in your account. Understanding this structure is the foundation of understanding your costs.
Interchange fee
Interchange is the fee paid from your bank (the acquirer) to the customer's bank (the issuer) every time a card transaction is processed. The card networks (Visa, Mastercard, and eftpos) set these rates, and the Reserve Bank of Australia caps them. Rates vary by card type: eftpos debit cards are very low (a few cents flat); Visa and Mastercard debit is around 0.10%–0.20%; Visa and Mastercard credit has historically run up to 0.80%; and American Express is excluded from the same RBA caps.
From October 2026, the RBA is reducing the credit card interchange cap from 0.80% to 0.30%. The question is whether your provider passes that reduction through to you. That is not automatic.
Scheme fees
Scheme fees are charged by the card networks themselves (Visa, Mastercard, eftpos Australia) for access to their payment infrastructure. These are small (typically 0.10%–0.15%) but they sit on top of interchange and are rarely broken out separately on merchant statements.
Acquirer margin
The acquirer is your payment provider: your bank, Tyro, Zeller, Square, or whoever processes your transactions. The acquirer margin is what they add on top of interchange and scheme fees to cover their own costs and profit. This is the number most heavily influenced by how well you've negotiated, and whether you're on a modern or legacy pricing structure. When someone quotes you a "merchant service fee" of 1.4%, that figure bundles all three layers together.
Blended rate vs interchange-plus: two very different structures
How your acquirer bundles these three layers determines the structure of your pricing. There are two main models in the Australian market.
Blended rate (flat rate)
A blended rate charges the same percentage regardless of which card the customer uses: 1.4% on a Visa debit, 1.4% on an Amex credit, 1.4% on a domestic eftpos card. Most modern fintechs use this model: Zeller (1.4%), SumUp (1.75%), Square (1.6%).
Advantages
- + Simple to budget: one number on every statement
- + You benefit on expensive card types where the blended rate is lower than actual interchange
Disadvantages
- − You pay the same for cheap eftpos as expensive credit cards
- − At high volumes with lots of domestic debit, interchange-plus may be cheaper
Interchange-plus (cost-plus)
Interchange-plus charges you the actual interchange cost for each transaction, plus a fixed margin. Your statement shows different rates for different card types because the underlying interchange rates differ. Major banks (in negotiated arrangements), Tyro, Zero Payments, and other specialist acquirers use this model.
Advantages
- + More transparent: you can see exactly what each layer costs
- + Domestic eftpos transactions are very cheap, and you benefit directly
- + After October 2026, credit card costs should fall as interchange caps drop
Disadvantages
- − Harder to predict monthly costs if your card mix fluctuates
- − Requires careful statement reading to understand the real rate
- − Only advantageous if your negotiated margin is genuinely competitive
Which structure is right for your venue? The choice between blended and interchange-plus is not the same for every type of business. It depends on your card mix, transaction volume, and customer profile. A café processing mostly domestic debit cards is a very different situation to a hotel with a high proportion of international and premium credit cards. For a detailed breakdown by venue category, including least-cost routing and how to calculate your effective rate, see our guide to blended rates vs interchange-plus for hospitality venues .
What your merchant statement actually shows
Your monthly merchant statement should break down every charge. In practice, many do not, and the absence of a clear breakdown can make it difficult to audit your real cost.
| Line item | What it is |
|---|---|
| Merchant service fee (MSF) | The total rate charged on card transactions. Sometimes shown as a single blended figure. |
| Transaction volume | Total card sales processed in the period. |
| Transaction count | Number of individual transactions. |
| Equipment / terminal fee | Monthly rental or lease cost for your terminal. |
| Monthly service fee | A flat monthly account fee, separate from transaction charges. |
| PCI compliance fee | A fee charged by some providers for Payment Card Industry compliance. |
| International card surcharge | Higher rates applied to cards issued outside Australia. Often buried. |
| Minimum monthly charge | A fee applied if your transaction volume is too low. |
| Chargeback fees | Fees applied if a customer disputes a transaction. |
Red flags to look for on your statement
- !
International card fees billed separately at a much higher rate.
Some providers show a competitive domestic rate but apply 2%–3% to international cards. For venues with international tourists (hotels, CBD restaurants), this can significantly inflate your effective rate.
- !
PCI compliance fees.
Some providers charge $10–$30 per month for PCI compliance. This is a cost-recovery measure that is not always disclosed upfront.
- !
Minimum monthly charges.
If your business has a slow season, a minimum monthly charge ensures the provider still gets paid regardless. Common in bank arrangements.
- !
A total with no breakdown.
If your statement shows one lump sum with no line-item detail, that is a problem. You cannot benchmark, negotiate, or audit a statement you cannot read.
On statement accessibility: Tyro's online portal is generally regarded by hospitality operators as offering strong reporting and analytics functionality. If you are on Tyro, exploring the portal's reporting and analytics tools is worthwhile before your next rate discussion.
How banks and fintechs structure fees differently
Major bank providers
ANZ, NAB, Westpac, CommBank
Rates are negotiated per merchant. There is no published rate card. What you're offered depends on your transaction volume, your relationship with the bank, and how hard you push. Banks typically bundle in terminal rental, monthly fees, and sometimes PCI compliance fees. The rate you agree to is not automatically reviewed; if interchange costs fall (as they will from October 2026), your rate does not automatically follow.
Specialist acquirers
Tyro, Zero Payments
Rates are typically interchange-plus with a negotiated margin. Specialist acquirers tend to have deep hospitality POS integrations, which is why they dominate in venues using H&L, Lightspeed, and Impos. Their pricing is more transparent than the major banks but still requires a conversation.
Modern fintechs
Zeller, SumUp, Square
Published flat rates, no monthly fees, no lock-in contracts. What you see on their website is what you pay. This makes benchmarking straightforward. The trade-off is that the flat rate is not negotiated downward regardless of volume. Custom rates only become available at higher volumes (typically well above $250,000/year).
See how all major Australian providers compare on pricing, integrations, and contract terms.
The terminal type you choose can also constrain which providers are available for your POS system. See our guide to EFTPOS terminal types for Australian hospitality venues for detail on how hardware and provider choices interact.
What "good" looks like at different volumes
As a rough guide for Australian hospitality venues:
These ranges are indicative only and reflect typical market conditions as at 13 May 2026. They are not a recommendation for any individual venue.
| Monthly card volume | What to target |
|---|---|
| Under $20,000/month | Flat-rate fintech (1.4%–1.6%). Simple, no lock-in, easy to switch. |
| $20,000–$80,000/month | Either flat-rate fintech or a negotiated specialist acquirer. A negotiated rate of 0.9%–1.2% is achievable. |
| $80,000–$250,000/month | Specialist acquirer with negotiated interchange-plus. The volume justifies the conversation. |
| Above $250,000/month | Negotiated rates from specialist acquirers or major banks. A 0.1% rate improvement is worth thousands per year. |
These ranges are indicative. The right structure also depends on your card mix, POS system requirements, and whether Pay@Table or integrated tipping matters for your venue. These benchmarks may be updated as market conditions and provider pricing evolve.
Not sure which structure applies to your venue? Use the HEFTE fee calculator to model your actual costs at your transaction volume, or take the 60-second quiz for a matched provider recommendation.
What changes in October 2026
From 1 October 2026, two things happen simultaneously:
Card surcharges on domestic cards are banned
If you've been recouping your acceptance costs via a surcharge, that stops. This is mandatory.
Credit card interchange caps drop from 0.80% to 0.30%
This reduces the underlying cost of accepting credit cards for your provider. Whether that reduction flows through to your rate is a different question, and not guaranteed unless you are on interchange-plus or you renegotiate.
The venues that benefit most are those that review their rate before October, switch to a provider or plan that passes through the lower interchange, and understand their actual effective rate, not just the headline figure they agreed to years ago.
This is why reading your statement matters. If you do not know what you are paying today, you cannot know whether October's changes are working in your favour.
References to the October 2026 RBA reforms are based on materials published by the Reserve Bank of Australia. Operators should confirm the final form and commencement date directly with the RBA or their provider.
About this guide
HEFTE provides educational content about EFTPOS in Australia. We earn a referral fee from some of the providers listed on this site if you choose to switch through our quiz, calculator or compare tools. This commercial relationship does not change the information presented in our guides, but you should know it exists. We recommend confirming any rate or feature directly with the provider before signing.
General information only
This guide is general information about EFTPOS arrangements in Australia. It does not take into account your specific business circumstances and is not financial, tax, legal or professional advice. Rates and product features change. We recommend confirming current rates and terms directly with the provider, and seeking professional advice tailored to your business before making a decision.
Rates and product features cited in this guide are accurate as at 13 May 2026. Rates change frequently; confirm current pricing directly with the provider before making a decision.
Rates last reviewed: 13 May 2026
Key terms
Interchange fee
The fee your bank pays to the customer's bank on every transaction. Set by card networks, capped by the RBA.
Scheme fee
A small fee charged by the card network (Visa, Mastercard, eftpos) for access to their payment infrastructure.
Merchant service fee (MSF)
The total rate you pay on card transactions. Bundles interchange, scheme fees, and your provider's margin into one figure.
Blended rate
A flat rate that applies the same percentage to every card type. Simple to budget, but you pay the same for cheap eftpos and expensive credit cards.
Interchange-plus
A pricing structure where you pay the actual interchange cost plus a fixed margin. More transparent, and cheaper for debit-heavy businesses.
Run your own numbers
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