We’re Here to Help You Prepare for the Card Surcharge Ban
Last updated 24 days ago
From 1 October 2026, Australian businesses will no longer be able to add a surcharge to credit or debit card payments.
This is one of the most significant changes to the payments industry in recent years. If your business currently passes card processing fees on to customers, you may be considering how the ban will affect your costs, pricing and payment strategy.
The good news is that you do not have to navigate these changes alone.
Pay Advantage has been preparing for the card surcharge ban by developing new tools that give you more control over the payment methods you offer and greater flexibility in how you manage your payment costs.
There is no one-size-fits-all solution. The right approach will depend on your business, your customers, your transaction values and the way you currently accept payments. You can use one of the options below, combine several of them or continue accepting payments as you do today.
What Will Happen on 1 October 2026?
On 1 October 2026, Pay Advantage will automatically change card payment fees from Customer Pays to Business Absorbs.
This means your customers will no longer be charged an additional card surcharge. The applicable card processing fees will instead be deducted from the amount your business receives.
You will not need to manually turn off card surcharging within Pay Advantage. However, you should review any other places where you mention or apply card surcharges, including your website, invoices, agreements, receipts and in-store signage.
Payment methods such as PayID, PayTo, Direct Debit and BPAY are not affected by the card surcharge ban.
How Pay Advantage Can Help
Our new tools focus on four key areas:
Offering lower-cost payment methods such as PayID and PayTo
Giving you greater control over when card payments are available
Encouraging customers to select your preferred payment method
Making it easier to transition existing customers to alternative payment methods
You do not need to use every feature. You can choose the options that best suit your business and customers.
1. Offer PayID and PayTo as Alternative Payment Methods
One of the simplest ways to prepare is to give your customers more ways to pay.
PayID and PayTo allow customers to make secure bank-to-bank payments without using a card. These payment methods attract a flat transaction fee rather than a percentage-based card processing fee, which can make them particularly useful for larger payments.
You can actively encourage customers to use these methods or simply make them available as additional choices.
PayID
PayID allows customers to make an instant payment through their online banking app.
Customers simply:
Select PayID as their payment method
Scan the QR code or enter the displayed PayID
Approve the payment through their banking app
The payment is transferred almost instantly and automatically matched to the relevant payment request.
PayID is ideal for:
One-off invoices
Payment Requests
Hosted Payment Pages
Higher-value payments
Customers who prefer bank transfers
One-Off PayTo
One-Off PayTo provides a secure bank-based alternative for individual payments.
Instead of entering card details, the customer authorises the payment through their banking app. The payment can then be processed using real-time bank authentication.
This can be particularly valuable for higher-value transactions where percentage-based card processing costs may have a greater effect on your business.
One-Off PayTo is ideal for:
Larger invoices
Professional services
Trades
Education providers
Retail purchases
Other high-value transactions
2. Control When Card Payments Are Available
You do not need to stop accepting cards entirely.
Some businesses may continue accepting cards for every transaction, while others may prefer to offer cards only for smaller payments and direct larger transactions towards lower-cost payment methods.
Our flexible card controls allow you to choose the approach that works best for your business.
Option 1: Disable Card Payments on Online Payment Pages
If you would like to encourage customers to use bank-based payment methods, you can remove cards as an option from:
Payment Links
Hosted Payment Pages
Customer Portal
Payment Requests
Xero invoices
Customers will instead see the other payment methods you have enabled, which may include:
PayID
One-Off PayTo
BPAY
Payment Plans
Your Virtual Terminal will remain available, so your staff can continue accepting card payments over the phone or in person when required.
Option 2: Set a Maximum Card Payment Amount
You can also nominate a maximum transaction value for card payments.
For example:
Payments up to $300
Customers can choose from:
Card
PayID
One-Off PayTo
Payments above $300
Customers can choose from:
PayID
One-Off PayTo
BPAY
Payment Plans
Once the payment exceeds your nominated limit, the card option is automatically hidden.
This allows you to retain the convenience of cards for smaller purchases while directing higher-value payments towards methods that may cost your business less to process.
There is no single correct limit. You can choose an amount that reflects your average transaction value, customer preferences and payment costs.
3. Encourage Customers to Choose Lower-Cost Payment Methods
You may not want to remove any payment options. Instead, you may prefer to positively encourage customers to choose the methods that cost your business less.
Pay Advantage’s Reduce Fees settings allow you to:
Highlight your preferred payment method
Display a Preferred badge
Add a personalised message explaining your recommendation
Offer a fixed-dollar or percentage discount
For example, you could highlight PayID as your preferred option and offer customers a small discount for choosing it.
Small incentives can make your preferred payment method more attractive while still giving customers the freedom to choose how they would like to pay.
4. Transition Existing Customers with Bulk Account Change Links
If you decide to move existing recurring customers from cards to bank-based payments, updating each customer individually could take considerable time.
Bulk Account Change links make this process easier.
You can securely email multiple customers and invite them to update their payment details online at a time that suits them.
This feature can help if you are:
Moving recurring customers from cards to bank payments
Reducing your reliance on card payments
Encouraging customers to use PayTo or bank account Direct Debit
Preparing your customer base before 1 October 2026
The process is secure, straightforward for customers and designed to reduce the administrative work involved in changing payment methods.
Where Should You Start?
Every business will respond differently, but we recommend considering the following steps:
Review the payment methods you currently offer.
Examine your recent transaction values and card processing costs.
Calculate how much surcharge revenue your business currently collects.
Enable PayID and PayTo if they are suitable for your business.
Decide whether you want to limit cards for higher-value payments.
Highlight your preferred payment method.
Consider offering a small discount for lower-cost payment methods.
Use Bulk Account Change links if you want to transition existing recurring customers away from cards.
Review your pricing to determine how card processing costs will be managed after surcharging ends.
Update your website, receipts, agreements, signage and customer communications before 1 October 2026.
You do not need to implement every feature. The important thing is to choose the options that best align with your business, customers and the payment experience you want to provide.
Frequently Asked Questions
When does the Australian card surcharge ban begin?
The card surcharge ban takes effect on 1 October 2026.
From this date, Australian businesses will no longer be able to add a separate surcharge to credit or debit card payments.
What will Pay Advantage do when card surcharging ends?
Pay Advantage will automatically change card payment fees from Customer Pays to Business Absorbs on 1 October 2026.
Merchants will not need to manually turn off card surcharging within Pay Advantage. The applicable card processing fees will instead be deducted from the amount the business receives.
Do I need to change my Pay Advantage settings?
You will not need to manually turn off card surcharging within Pay Advantage.
However, you may wish to review your payment settings, enable alternative payment methods, set a card payment limit or highlight a preferred payment method.
You should also remove any references to card surcharges from your website, invoices, agreements, receipts and signage.
Which payment methods are affected by the surcharge ban?
The ban applies to credit and debit card payments.
Alternative payment methods such as PayID, PayTo, Direct Debit and BPAY are not affected.
Can businesses still accept credit and debit cards?
Yes. Businesses can continue accepting credit and debit cards after 1 October 2026.
The change means businesses will no longer be able to add a separate card surcharge to the customer’s payment. The business will need to absorb the applicable card processing fee or account for it through its general pricing.
How can businesses reduce payment processing costs?
Businesses can encourage customers to use flat-fee payment methods such as PayID and PayTo.
Pay Advantage merchants can also:
Highlight a preferred payment method
Offer a fixed-dollar or percentage discount
Remove cards from selected online payment pages
Set a maximum transaction value for card payments
Transition existing recurring customers to bank-based payment methods
The right approach will depend on the business’s transaction values, customer preferences and existing payment processes.
Can Pay Advantage merchants limit card payments?
Yes. Pay Advantage merchants can remove cards from selected online payment pages or set a maximum transaction value for card payments.
For example, a business could continue accepting cards for payments up to $300 while offering only PayID, PayTo, BPAY or Payment Plans for larger transactions.
Can Pay Advantage merchants limit card payments?
Yes. Pay Advantage merchants can remove cards from selected online payment pages or set a maximum transaction value for card payments.
For example, a business could continue accepting cards for payments up to $300 while offering only PayID, PayTo, BPAY or Payment Plans for larger transactions.
Can I offer customers a discount for using PayID or PayTo?
Yes. Pay Advantage’s Reduce Fees settings allow merchants to offer either a fixed-dollar or percentage discount for choosing an eligible preferred payment method.
This can encourage customers to select a payment option that costs the business less to process without removing their ability to choose.
Can existing recurring customers move from cards to bank payments?
Yes. Pay Advantage merchants can use Bulk Account Change links to invite existing customers to securely update their payment method.
This can help businesses transition recurring customers from cards to PayTo or bank account Direct Debit without contacting and updating every customer individually.
Is PayID suitable for high-value payments?
PayID can be particularly useful for higher-value payments because it attracts a flat transaction fee rather than a percentage-based card processing fee.
It also allows customers to make payments through their online banking app, with funds transferred almost instantly and automatically matched to the relevant payment request.
We’re Here to Support You
The card surcharge ban will change how Australian businesses manage card processing costs, but it also provides an opportunity to review your payment strategy and ensure it continues to work effectively for your business.
Pay Advantage has invested in practical tools that give you more choice and control over how payments are accepted.
If you are unsure where to begin, our team can help you:
Understand how the changes may affect your business
Review the payment methods you currently offer
Enable PayID or PayTo
Configure card payment limits and preferences
Transition existing customers to alternative payment methods
Develop a payment strategy suited to your business
We are committed to supporting you before, during and after the changes take effect on 1 October 2026.
If you would like personalised guidance, you can book a time with our team to review your Pay Advantage account and discuss the payment options that may work best for your business.
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