Australian Card Surcharge Rules: Cost-of-Acceptance Cap and ACCC Enforcement
Australia allows payment method surcharges but caps them at the merchant's actual cost of accepting that payment type. The ban on excessive surcharges applies to Visa, Mastercard, and EFTPOS; American Express, PayPal, and BPAY are not regulated. The ACCC enforces compliance.
This is a regulated fee — required or governed by law in the jurisdictions below.
Overview
Since 2003 Australia has permitted merchants to add surcharges on card payments, subject to a ban on excessive surcharges: the surcharge cannot exceed the merchant's documented cost of accepting that specific payment type. The Reserve Bank of Australia (RBA) sets the standards (e.g. RBA Standard No. 3 of 2016) defining which costs can be included. The Australian Competition and Consumer Commission (ACCC) enforces the ban. The regulated payment systems are Visa (credit, debit, prepaid), Mastercard (credit, debit, prepaid), and EFTPOS. American Express, Diners Club, PayPal, and BPAY are not covered—merchants have more flexibility there but must still disclose. Surcharges must be disclosed upfront. Interchange fees are also capped (credit 0.8%, debit 0.2% or 10 cents).
Fee schedule by jurisdiction
2 jurisdictions with active fee requirements.
| Jurisdiction | Fee |
|---|---|
| Australia (Visa, Mastercard, EFTPOS) | Permitted up to actual cost of acceptance; excessive surcharges prohibited |
| Australia (Amex, PayPal, other) | Not regulated under surcharging ban; disclosure still required |
Australia (Visa, Mastercard, EFTPOS)
Permitted up to actual cost of acceptance; excessive surcharges prohibited
Credit, debit, and prepaid cards under Visa, Mastercard, EFTPOS
ACCC enforces. RBA Standard defines eligible costs. Must disclose before payment.
Australia (Amex, PayPal, other)
Not regulated under surcharging ban; disclosure still required
American Express, Diners Club, PayPal, BPAY
Merchants may set surcharges; consumer law still requires clear disclosure.
Enforcement
The ACCC can take action against excessive surcharging. Courts may order refunds, injunctions, and pecuniary penalties. Businesses must be able to demonstrate their cost of acceptance.
Official sources
Related guides
Step-by-step guides for charging australian payment method surcharges on Shopify.
How to Add a Credit Card Surcharge on Shopify
Learn how to add credit card surcharges on Shopify. Understand payment rules, stay compliant, and recover transaction fees with an app.
How to charge a credit card payment method fee with Magical Fees
For Shopify Plus (Plus plan)This feature is fully supported for merchants on Shopify Plus using the Plus plan. In the app admin, click Create Fee.
Shopify compliance
This fee is conditional — legality varies by jurisdiction. Merchants must verify whether their state or region permits this fee before enabling it. Shopify requires clear disclosure of any additional charges at checkout.
This information is maintained by the Magical Apps team and reviewed annually. Always consult official government sources for the most current requirements.
Quick facts
- Regulation
- Competition and Consumer Act 2010 and RBA Surcharging Standards
- Country
- Australia
- Jurisdictions
- 2
- Category
- Regulatory Surcharges
Explore Australian Payment Method Surcharges in practice
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Canadian Payment Method Surcharges
In Canada there is no federal ban on payment method surcharges. Merchants commonly add surcharges for credit card, PayPal, Klarna, and other alternative payment methods with clear disclosure. Card network and payment provider rules apply.
View fee schedule →GermanyGermany Payment Surcharge Rules
Under EU PSD2 and the Interchange Fee Regulation, merchants in Germany cannot add surcharges on card-based payments (debit and credit cards). Surcharges on PayPal, Klarna, and other payment methods not covered by the card surcharge ban are not prohibited at EU level; merchants may add them with clear disclosure where permitted by German consumer law.
View fee schedule →SpainSpain Payment Surcharge Rules
Under EU PSD2 and the Interchange Fee Regulation, merchants in Spain cannot add surcharges on card-based payments (debit and credit cards). Surcharges on PayPal, Klarna, and other payment methods not covered by the card surcharge ban are not prohibited at EU level; merchants may add them with clear disclosure where permitted by Spanish consumer law.
View fee schedule →European UnionEU VAT for E-Commerce (OSS and IOSS)
Reference for EU VAT rules for e-commerce: the One-Stop Shop (OSS) for distance sales within the EU and the Import One-Stop Shop (IOSS) for low-value imports (consignment value ≤ €150). Non-EU sellers must register and charge VAT; merchants often display it as a separate line at checkout.
View fee schedule →FranceFrance Payment Surcharge Rules
Under EU PSD2 and the Interchange Fee Regulation, merchants in France cannot add surcharges on card-based payments (debit and credit cards). Surcharges on PayPal, Klarna, and other payment methods not covered by the card surcharge ban are not prohibited at EU level; merchants may add them with clear disclosure where permitted by French consumer law.
View fee schedule →ItalyItaly Payment Surcharge Rules
Under EU PSD2 and the Interchange Fee Regulation, merchants in Italy cannot add surcharges on card-based payments (debit and credit cards). Surcharges on PayPal, Klarna, and other payment methods not covered by the card surcharge ban are not prohibited at EU level; merchants may add them with clear disclosure where permitted by Italian consumer law.
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