Quick Answer
Australia allows you to surcharge for card payments, but only up to your actual cost of accepting that payment method — the ACCC enforces this. New Zealand is banning in-store surcharges (expected May 2026), but online surcharges are explicitly exempt. Shopify doesn't support payment-method-based surcharges natively. Magical Fees lets you add a clearly labeled payment surcharge at checkout for customers in Australia and New Zealand.
What You Need to Know
Australia: Surcharges allowed, but capped
Australian merchants can add a surcharge when customers pay by card — Visa, Mastercard, or EFTPOS. But the surcharge can't exceed your actual cost of accepting that payment method. The Reserve Bank of Australia (RBA) sets the rules, and the Australian Competition and Consumer Commission (ACCC) enforces them.
Key points:
- Visa, Mastercard, EFTPOS — surcharges allowed up to cost of acceptance
- American Express, PayPal, BPAY — not covered by the surcharging ban, so you have more flexibility (but you still need to disclose)
- Disclosure — you must show the surcharge upfront, before the customer pays
- Penalties — the ACCC can take action against excessive surcharges, including court-ordered refunds and fines
Your cost of acceptance depends on your payment processor and plan. Check your Shopify Payments or third-party gateway statements for the exact rate. That's your ceiling.
For more detail, see the ACCC's card surcharge guidance.
New Zealand: In-store ban coming, online exempt
New Zealand is introducing a ban on payment surcharges for in-store transactions, expected to take effect by May 2026. But the legislation explicitly exempts online payments — ecommerce merchants can continue adding surcharges.
- In-store — surcharges on EFTPOS, Visa, and Mastercard will be banned
- Online — surcharges remain permitted; disclosure and card network rules apply
- Timeline — the bill passed first reading in September 2025, with the ban expected in force by May 2026
If you sell online to New Zealand customers, your payment surcharge can continue. Just make sure it's clearly disclosed.
For the latest on the NZ legislation, see MBIE's surcharging page.
How to Set Up Payment Surcharges With Magical Fees
Magical Fees lets you add a percentage-based fee that targets customers by location. Here's how to configure it for AU/NZ.
1. Determine your surcharge rate
For Australia, calculate your actual cost of acceptance from your payment processor statements. This is your maximum surcharge. Common rates for Shopify Payments in Australia are around 1.75–2.9% for credit cards.
For New Zealand, there's no cost-of-acceptance cap for online surcharges, but keep it reasonable — card network rules still apply, and excessive surcharges drive customers away.
2. Create a payment surcharge fee rule
In Magical Fees, create a percentage-based fee. Name it clearly — "Card Processing Fee" or "Payment Surcharge" — so your customers understand the charge.
Set the percentage to your surcharge rate. Apply it to all products (or specific collections if you only surcharge certain categories).
3. Add a location condition
Add a location condition so the surcharge only applies to orders shipping to Australia, New Zealand, or both — depending on your setup. Customers in other countries won't see the charge.
4. Consider separate rules for AU and NZ
If your surcharge rate differs between the two countries (which it likely will, since the Australian rate is capped at cost of acceptance), create separate rules — one for Australia with one rate, one for New Zealand with another.
5. Test and verify
Place test orders shipping to Australia and New Zealand. Confirm the surcharge appears as a clear, separate line item, the percentage is correct, and it doesn't appear for other countries.
Common Questions
Can you surcharge on all payment methods in Australia?
The ACCC's cost-of-acceptance cap applies to Visa, Mastercard, and EFTPOS. American Express, PayPal, and BPAY are not covered by the ban — you can set your own surcharge for those, though you still need to disclose it.
What if your surcharge exceeds cost of acceptance in Australia?
The ACCC can take enforcement action. That can include court-ordered refunds, injunctions, and financial penalties. You need to be able to demonstrate your cost of acceptance if challenged.
Will New Zealand eventually ban online surcharges too?
The current legislation includes regulation-making powers that could extend the ban to online in the future. But as of now, online surcharges are explicitly exempt. Keep an eye on updates from MBIE.
Do you need to show the surcharge before checkout?
Yes. In Australia, the surcharge must be disclosed before the customer commits to paying. Magical Fees shows the fee as a line item in the cart and at checkout, which satisfies this requirement.
Further Reading
Always label deposits separately for compliance
Display bottle deposit fees as a clearly labeled, separate line item at checkout and on receipts. This meets regulatory transparency requirements, builds customer trust by showing exactly what they're paying, and makes it significantly easier to track deposits for reporting and audits. Use a clear label like "Bottle deposit" or "Container deposit (CRV)" so customers immediately understand the charge.
“Magical Fees is the only fee app that allows you to apply a fee based on a specific or individual state/province situation. All the other apps we tested only allow 'Location' (the entire country) which is a major limitation. The solution Magical Fees applies during the Cart to Checkout process is very smart and not a hassle. Very easy app to setup and the support was great.”