Surcharging is being removed from all major card schemes on 1 October. The Reserve Bank has pointed to potential upsides for small business, but there's a gap in this reform that hasn't had much airtime, and it's one worth understanding before you sign or renew any payments contract between now and then.
The problem: pricing you can't see yet
The rate tables that will actually determine your costs after 1 October aren't required to be published before the change takes effect. Acquirers and larger merchants already have that visibility. Most small and medium businesses don't, and yet many are being asked to commit to long-term contracts anyway, in some cases up to three years.
Industry groups, including the Australian Hotels Association, have raised the same concern: pricing should have been made transparent before the surcharge changed, not after. We agree.
Why this matters if you're about to sign
Sign now on the old numbers, and you could end up locked into pricing that doesn't reflect what's actually coming, for the life of the contract. The surcharge is going, but the cost behind it isn't disappearing. It's shifting, and right now most SMBs can't see where it's landing.
What we'd suggest before October
- Ask your current provider for a plain answer on what your rate looks like after 1 October.
- Be wary of any long-term contract offered before that answer is public.
- Talk to us before you sign anything. We've been working closely with merchants ahead of this change, and we can give you a straightforward, honest read on where you stand, no obligation.
A payment provider should make your business easier to run, not harder to leave. Get in touch and we'll give you a clear, no-pressure read on your position, and help you decide whether now is the time to sign or wait.
We'll help you move Further.
