Payment processing for Australian hospitality 2026: the complete guide
Updated for the 1 October 2026 surcharge ban and lower interchange caps. How card payments work, what makes up your merchant fee, why your POS affects what you pay and how to lower your costs.
By Kym Eaton, Marketing Manager, Triniteq · Updated 2 October 2026 · 11 min read
Since 1 October 2026, Australian venues can no longer surcharge most card payments, and interchange caps are lower. Card fees are now a cost you absorb, so the rate you pay matters more than ever.
- Only the provider margin in your merchant fee is negotiable
- Know your effective rate: total fees divided by card sales
- An independent POS lets you choose and change payment provider
- Ask your provider how the lower interchange caps reach your rate
A "free" POS is rarely free. When the POS comes with its own payment processing, you pay through card fees on every sale, so it often costs more over three to five years.
What changed on 1 October 2026
On 1 October 2026, the Reserve Bank of Australia's changes to card payments took effect. They change how Australian venues pay for card payments, and how those costs show up on the bill.
Card surcharges are no longer allowed
Businesses can no longer add a surcharge to card payments on eftpos, Mastercard and Visa debit, prepaid and credit cards, in store or online. NAB's merchant guidance says the ban also covers American Express and UnionPay International cards. For hospitality venues, the cost of accepting cards now sits inside your menu prices rather than on top of the bill.
Lower interchange caps
Interchange is the fee your payment provider pays to the cardholder's bank, and it is part of every merchant fee. From 1 October 2026 the RBA lowered the caps on domestic interchange:
| Card type | Interchange cap | From |
|---|---|---|
| Consumer credit cards | 0.3% of the transaction value | 1 October 2026 |
| Debit and prepaid cards | 8 cents per transaction and 0.16% of the transaction value | 1 October 2026 |
| Commercial credit cards | 0.8% of the transaction value (unchanged) | Already in place |
| Foreign-issued cards | 1.0% of the transaction value | 1 April 2027 |
More transparency on fees
From 30 October 2026, the major card schemes and large acquirers must publish their average merchant fees every quarter. From 1 April 2027, merchant statements will also need to show more detail, such as the split between domestic and foreign-issued cards.
What this means for your venueCard fees are now a cost you absorb, so the rate you pay matters more than ever. Lower interchange should reduce costs for many venues, but only if your payment provider passes the savings on. This is the right time to check what you pay and ask for a better rate.
Sources: Reserve Bank of Australia, Review of Merchant Card Payment Costs and Surcharging and NAB, RBA surcharging changes. This guide is general information, not financial or legal advice. Check the details with your payment provider and accountant.
How payment processing works in hospitality
Every time a customer taps their card, phone or watch, several parties are involved in a few seconds:
The customer pays
The POS sends the amount to the EFTPOS terminal and the customer taps or inserts their card.
Your provider routes it
Your payment provider (the acquirer) sends the transaction through the card scheme, such as eftpos, Mastercard or Visa.
The bank approves it
The cardholder's bank checks the funds and approves or declines the payment.
You are paid, minus fees
The money settles into your account, less the merchant fee, usually the next business day or a few days later.
The merchant fee you pay covers everyone in that chain. Understanding its parts is the first step to paying less.
What makes up your merchant fee
Every merchant fee is made up of three parts. Only one of them is negotiable.
| Part of the fee | Who sets it | Can you negotiate it? |
|---|---|---|
| Interchange | The card schemes, within the RBA caps | No |
| Scheme fees | The card schemes | No |
| Provider margin | Your payment provider | Yes |
The provider margin is where rates differ, and it is where competition between providers works in your favour.
How providers price their fees
- Flat or blended rate. One rate for most cards. Simple to understand, but you may pay the same rate on low-cost debit cards as on credit cards.
- Cost-plus (interchange-plus). The actual interchange and scheme fees are passed through, plus a set margin. Often better value for higher-volume venues, and it passes on interchange cuts automatically.
- Tiered rates. Different rates for different card types, such as debit, credit and premium cards.
Ask any provider which pricing structure they are quoting, and how the lower interchange caps from 1 October 2026 flow through to your rate.
Payment terms explained
| Term | What it means |
|---|---|
| Merchant service fee (MSF) | The total fee your payment provider charges you to accept a card payment. |
| Interchange | The part of the fee paid to the cardholder's bank, capped by the RBA. |
| Scheme fee | The part of the fee charged by the card scheme, such as eftpos, Mastercard or Visa. |
| Acquirer | The bank or payment provider that processes card payments for your business. |
| Effective rate | Your total merchant fees divided by your total card sales. |
| Surcharge | An extra fee added to a card payment. Not allowed on most card payments since 1 October 2026. |
| Cost-plus pricing | Pricing that passes through actual interchange and scheme fees, plus a set margin. |
| Settlement | When card payments are paid into your bank account, usually the next business day or a few days later. |
| Least-cost routing | Sending dual-network debit card payments through the cheaper network, often eftpos. |
Embedded vs independent POS: why your POS affects what you pay
Your POS system decides whether you can shop around for a better payment rate at all.
Embedded payment POS
An embedded POS bundles the POS and payment processing together. It often has a low upfront cost, and the provider earns its money from a margin on every card transaction. You use their payment service at their rate, and changing payment provider usually means changing your POS.
Independent POS
An independent POS keeps the POS and payments separate. You choose your payment provider, negotiate your own rate and can switch provider later without replacing your POS. PowerEPOS is an independent POS that integrates with 20+ payment providers, and Triniteq charges no transaction fees.
| Embedded payment POS | Independent POS | |
|---|---|---|
| Payment provider | The POS provider's own payment service | Your choice |
| Rate | Set by the POS provider | Negotiated by you |
| Changing provider | Usually means changing your POS | Change provider, keep your POS |
| POS cost as you grow | Rises with every sale | A predictable monthly licence |
Is a "free" POS really free?A POS with free software or hardware usually makes its money back through card fees on every sale, so it often costs more over time. Do the maths over three to five years before you accept one. Our buyer's guide works through an example.
See how these types of POS compare on support, offline trading and more in our POS comparison.
Find Out What You Could Save
- Let's look at what you're likely paying now vs what you could pay with payment processor independence.
- PowerEPOS integrates with over 20 payment processors and charges zero transaction fees. Your subscription stays the same whether you process $10,000 or $1,000,000.
- No obligation, just useful numbers from our Australian-based team.
What a better rate is worth to your venue
Small differences in your effective rate add up over a year. This table shows what a 0.5 percentage point lower rate is worth at different card volumes.
| Monthly card sales | Saving per month | Saving per year | Saving over 3 years |
|---|---|---|---|
| $20,000 | $100 | $1,200 | $3,600 |
| $50,000 | $250 | $3,000 | $9,000 |
| $150,000 | $750 | $9,000 | $27,000 |
| $500,000 | $2,500 | $30,000 | $90,000 |
Illustration only, based on a 0.5 percentage point lower effective rate at steady monthly card sales. Your result depends on your card mix, volume and the rates you negotiate.
For hospitality groups and large venues, the numbers grow quickly, which is why the freedom to negotiate and renegotiate matters as you grow. Try our savings calculator to estimate yours.
How to check what you pay now
Use your latest payment provider statement and follow these steps:
Find your card sales and fees
From your payment provider statement, note your total card sales and total merchant fees for the last month or quarter.
Work out your effective rate
Divide total fees by total card sales. For example, $1,104 in fees on $48,000 of card sales is an effective rate of 2.3%.
Look at your card mix
Debit cards cost less to accept than credit, business and international cards. A venue with many tourists or corporate diners will usually pay a higher effective rate.
Check whether your POS lets you change provider
If your POS only works with its own payment service, you cannot move to a better rate without changing your POS.
Get quotes for your volume
Ask several payment providers for a quote based on your monthly card sales and card mix, not their published standard rate.
Compare the annual cost
Multiply each quote by your yearly card sales, add terminal and other fees, and compare the totals.
What to compare between payment providers
The rate matters most, but it is not the only thing to compare. Ask every provider about the following:
| Compare | What to ask |
|---|---|
| Pricing structure | Is it a flat rate, cost-plus or tiered? What will my effective rate be for my card mix? |
| Interchange cuts | How are the lower interchange caps from 1 October 2026 reflected in my rate? |
| Settlement | How quickly do funds reach my account, and is weekend settlement available? |
| Contract | How long is the contract, and are there exit fees? |
| Terminals | What do the EFTPOS terminals cost to buy or rent? |
| Reporting | What reporting and reconciliation do I get, and does it match my POS? |
| POS integration | Does it integrate with my POS, so amounts are sent to the terminal automatically? |
Triniteq does not recommend a particular payment provider. PowerEPOS integrates with 20+ providers, including banks and specialist providers, so you can choose the one that suits your venue. See all PowerEPOS integrations.
What hospitality venues should do now
With the 1 October 2026 changes in place, work through this checklist:
- Check surcharges are switched off in your POS and EFTPOS terminal settings.
- Update your menus, signage, website and invoices to remove any mention of card surcharges.
- Review your menu pricing now that card costs sit inside your prices. Talk to your accountant if you are unsure.
- Ask your payment provider for a new rate that reflects the lower interchange caps.
- Compare quotes from other providers, if your POS lets you change.
- Watch for published fee data from 30 October 2026 to see how your rate compares.
- Plan for 1 April 2027 if many of your customers use foreign-issued cards.
How PowerEPOS keeps you in control of payment costs
PowerEPOS is an Australian-made, cloud-hybrid hospitality POS built to keep payments and POS separate, so you stay in control of your card costs.
- 20+ integrated payment providers. Choose the provider and rate that suit your venue.
- Switch providers, not POS. Change payment provider later without replacing your POS or retraining your team.
- No Triniteq transaction fees. A predictable monthly licence that does not rise with your sales.
- Keeps trading offline. Orders and payments keep flowing when the internet drops.
- Australian support. An Australian-based team during and after hours.
.png?width=1200&height=740&name=powerepos-bar-order-screen%20(1).png)
PricingSee current PowerEPOS pricing on our POS pricing menu.
Related guides and pages
Take control of your payment costs
Talk to our Australian team on 1300 784 666
Payment processing FAQs
Are card surcharges banned in Australia?
Yes. From 1 October 2026, businesses can no longer add surcharges to card payments on eftpos, Mastercard and Visa debit, prepaid and credit cards, in store or online. NAB's merchant guidance says the ban also covers American Express and UnionPay International cards.
When did the card surcharge ban start?
The surcharge ban and the lower domestic interchange caps took effect on 1 October 2026. A new cap on interchange for foreign-issued cards starts on 1 April 2027.
What are the new interchange caps?
From 1 October 2026, interchange on consumer credit cards is capped at 0.3% of the transaction value, and on debit and prepaid cards at 8 cents per transaction and 0.16% of the transaction value. Commercial credit cards stay at 0.8%. Foreign-issued cards will be capped at 1.0% from 1 April 2027.
Will my merchant fees go down?
Lower interchange caps should reduce card costs for many businesses, but your rate depends on your payment provider and pricing structure. Ask your provider how the lower caps are reflected in your rate, and compare quotes from other providers.
What is a merchant service fee?
A merchant service fee (MSF) is the total fee your payment provider charges to accept a card payment. It is made up of interchange, scheme fees and the provider's margin.
What is least-cost routing?
Least-cost routing sends payments on dual-network debit cards through the cheaper network, often eftpos, to lower your merchant fees. Ask your payment provider whether it is switched on.
What is an effective rate?
Your effective rate is your total merchant fees divided by your total card sales. For example, $1,104 in fees on $48,000 of card sales is an effective rate of 2.3%.
What is the difference between embedded and independent POS?
An embedded POS bundles payments with the POS, so you use the provider's own payment service and rate. An independent POS like PowerEPOS lets you choose your payment provider, negotiate your own rate and switch provider without changing your POS.
Does Triniteq charge transaction fees?
No. Triniteq charges no transaction fees. PowerEPOS is a predictable monthly licence. Card fees are set by the payment provider you choose. See current pricing on our POS pricing menu.
Which payment providers does PowerEPOS integrate with?
PowerEPOS integrates with 20+ payment providers, including banks and specialist providers. See the full list on our integrations page.
Can I keep my current payment provider with PowerEPOS?
In most cases, yes, as long as your provider is one of the 20+ payment providers integrated with PowerEPOS.
How long does it take to switch payment providers with PowerEPOS?
Switching payment provider with PowerEPOS typically takes one to two hours of setup and testing, with no change to your POS and no retraining for your team.
Can I negotiate my payment processing rate?
Yes. Payment providers compete for business, especially from higher-volume venues. Your card sales, card mix and willingness to switch give you bargaining power, but only if your POS lets you change provider.
Is a free POS system really free?
Usually not. A POS with free software or hardware often comes with the provider's own payment processing, so you pay through card fees on every sale for as long as you use it. Our buyer's guide works through an example over five years.
What do I need to change on my EFTPOS terminal?
Make sure surcharging is switched off in your POS and EFTPOS terminal settings. NAB advised merchants to keep terminals powered on overnight so they receive software updates. Check the details with your payment provider.
Should I raise my prices because of the surcharge ban?
That depends on your margins and how much your card fees cost you. Review your effective rate, ask for a better one and talk to your accountant before changing your prices.
Find Out What You Could Save
- Let's look at what you're likely paying now vs what you could pay with processor independence.
- PowerEPOS integrates with over 15 payment processors and charges zero transaction fees. Your subscription stays the same whether you process $10,000 or $1,000,000.
- No obligation, no lock-in contracts. Just useful numbers from our Australian-based team.
Does Triniteq charge transaction fees?
No. Triniteq charges zero transaction fees. Your PowerEPOS subscription is a flat monthly fee, $55 per month (inc. GST) for your first terminal licence per site, and $35 per month for each additional licence. Your payment processing fees are between you and your chosen processor.
Which payment processors does PowerEPOS integrate with?
What if I'm happy with my current processor?
How long does it take to switch payment processors with PowerEPOS?
What is payment processor lock-in?
Payment processor lock-in occurs when your POS system only works with one payment processor, usually the POS provider's own processing service. Switching to a different processor requires replacing your entire POS system, which creates a significant barrier to finding better rates.
How much can I save by switching processors?
Savings depend on your current rate, your volume, and the rate you can negotiate with a new processor. A venue processing $50,000 per month that reduces their rate from 2.6% to 1.5% saves $6,600 per year. Venues with higher volumes save proportionally more.