Payment Processing for Australian Hospitality 2026: The Complete Guide

How Payment Processing Works in Australian Hospitality

When a customer taps their card at your venue, the transaction passes through several parties before the money lands in your bank account. Each party takes a small fee, and those fees add up quickly across thousands of transactions per month.

Here's what happens behind every card payment:

The customer taps or inserts their card. The payment terminal reads the card details and sends the transaction to your payment processor.

Your payment processor routes the transaction. The processor sends it through the card network (Visa, Mastercard, eftpos, Amex) to the customer's bank (the issuing bank) for approval.

The issuing bank approves (or declines) the payment. If approved, the transaction is confirmed, and the funds begin their journey to your account.

You receive the funds, minus fees. Your payment processor deducts their fees and settles the remaining amount into your nominated bank account, typically within one to two business days.

Each step in this chain involves a fee. The card network charges a scheme fee. The customer's bank charges an interchange fee. Your payment processor charges a margin on top. And depending on your POS setup, your POS provider might be taking a cut as well.

What Are Payment Processing Fees?

Payment processing fees are the costs deducted from every card transaction before the funds reach your bank account. For Australian hospitality venues, these fees typically fall between 1.0% and 3.5% of each transaction, and the variation within that range can mean tens of thousands of dollars difference annually.

The Three Components of Every Transaction Fee

Interchange fees are set by the card networks and paid to the customer's issuing bank. These are non-negotiable and vary by card type. A standard domestic Visa debit card might attract an interchange fee of 0.20%, while a premium international Amex card could be 1.5% or higher. You can't change interchange fees, but you can influence your overall rate by understanding how they work.

Scheme fees are charged by the card networks themselves (Visa, Mastercard, eftpos). These are small — typically 0.02% to 0.10% — but they apply to every transaction.

Processor margin is what your payment processor charges on top of interchange and scheme fees. This is the negotiable part. Processor margins can range from 0.10% to over 1.5%, and this is where the real savings opportunity lies for hospitality venues.

What Does the Average Australian Restaurant Pay?

A typical Australian restaurant or cafe processing $50,000 per month in card payments will pay between $500 and $1,750 in processing fees each month, depending on their rate structure. That's $6,000 to $21,000 annually, and for many venues, it's one of the highest operating costs behind rent and wages.

The difference between paying 1.5% and 2.6% on $600,000 in annual card revenue is $6,600 per year. Over five years, that's $33,000. That's a kitchen renovation. That's a new POS system several times over. That's real money walking out the door.

Embedded POS vs Independent POS: Why Your POS System Affects What You Pay

Here's where it gets interesting for hospitality operators, and where most venue owners don't realise they're losing money.

The type of POS system you use directly affects how much you pay in processing fees, because not all POS systems treat payment processing the same way.

What Is an Embedded POS System?

An embedded POS system bundles the point of sale software and the payment processing together as a single package. The POS provider is also your payment processor, or they mandate which processor you use. Square, Clover, and some configurations of Lightspeed operate this way.

The appeal is simplicity: one provider, one bill, quick setup. The hardware is often subsidised or free upfront, and the monthly software fees are low or zero.

But there's a catch.

Embedded POS providers make their money on payment processing, not software. They charge a flat rate, typically 1.6% to 2.6% per transaction, that includes a built-in margin above the actual interchange cost. You can't see the margin. You can't negotiate it. And you can't switch to a different processor without replacing your entire POS system.

This is payment processor lock-in, and it's the single most expensive hidden cost in hospitality technology.

What Is an Independent POS System?

An independent POS system separates your point of sale software from your payment processing. You choose your POS provider for its features, support, and reliability. You choose your payment processor separately, based on who offers you the best rates for your transaction volume and card mix.

With an independent POS system, you can:

• Compare processor rates and choose the most competitive option for your business
• Negotiate directly with processors based on your transaction volume
• Switch processors if a better deal becomes available, without changing your POS
• See exactly what you're paying in processing fees, with no hidden POS provider markup

This is how PowerEPOS works. Triniteq charges zero transaction fees. Your POS subscription is a flat monthly fee that stays the same whether you process $10,000 or $1,000,000 in card payments. You negotiate your processing rates directly with your chosen processor from over 15 integrated options, including Tyro, Zeller, Zero Payments, Linkly, and all major Australian banks.

Real-World Example: How One Brisbane Restaurant Group Saved $6,600 Annually

One Brisbane restaurant group made the switch from an embedded POS to PowerEPOS and chose a new payment processor. They were processing approximately $50,000 per month in card payments at an effective rate of 2.6%, costing them $15,600 annually in processing fees.

After switching, they negotiated a direct rate of 1.5% with their processor, a rate available to them because of their transaction volume but previously inaccessible because their embedded POS only worked with its own processing service.

Their annual processing fees dropped from $15,600 to $9,000, a saving of $6,600 per year. The cost of the new PowerEPOS system was recovered within the first 12 to 18 months through processing savings alone. Over five years, the projected total savings are over $22,000 compared to staying with their embedded system.

The processor switch itself took approximately 1.5 hours. Staff were comfortable with the new POS within two hours of training. There was zero business disruption, they completed the changeover between lunch and dinner service.

The most important outcome? They now have the freedom to switch processors again anytime a better option becomes available, without touching their POS system.

What to Look for in a POS System
(from a Processing Perspective)

When evaluating POS systems, most hospitality operators focus on features, hardware, and monthly costs. But the payment processing relationship is often the largest cost factor over the life of the system.

Here's what to consider.

Number of Processor Integrations

A POS system with one processor option gives you no leverage. A POS system with 15 or more processor integrations gives you a competitive marketplace to choose from. PowerEPOS integrates with over 15 payment processors, including Tyro, Zeller, Linkly, Westpac, ANZ, NAB, CBA, Zero Payments, Qlub, and more.

Switching Ease

How long does it take to switch processors? With some systems, it's a multi-week project involving new hardware, reconfiguration, and retraining. With PowerEPOS, it takes one to two hours and requires no new POS hardware or staff retraining.

Transaction Fee Transparency

Does the POS provider charge transaction fees on top of your processor fees? Some POS providers take a per-transaction cut that adds up quickly. Triniteq charges zero transaction fees, your POS subscription is a flat monthly amount regardless of your transaction volume. As your business grows, your POS cost stays the same.

Flat Monthly Pricing vs Transaction-Based Pricing

This is an important distinction. Transaction-based POS pricing means your POS costs increase as your revenue increases, you're effectively penalised for growing your business. Flat monthly pricing means your costs are predictable and stable. You know exactly what you're paying for your POS every month, whether it's a quiet Tuesday or your busiest Saturday of the year.

Comparing Payment Processors for Australian Hospitality

Triniteq integrates with over 15 payment processors, and we don't recommend one over another, the best processor for your venue depends on your transaction volume, card mix, settlement preferences, and existing banking relationships.

However, here are the factors worth comparing when evaluating processors.

Rate structure: Some processors offer flat-rate pricing (one rate for all card types), while others offer interchange-plus pricing (interchange cost plus a fixed margin). Interchange-plus is typically cheaper for higher-volume venues, while flat-rate can be simpler for smaller operations.

Settlement speed: How quickly do funds reach your bank account? Some processors offer next-day settlement; others take two to three business days. For cash flow management, faster settlement can make a meaningful difference.

Contract terms: Some processors require 12 or 24-month contracts with early termination fees. Others offer month-to-month arrangements. With an independent POS, you have the flexibility to choose processors with favourable contract terms.

Terminal costs: Some processors provide terminals at no cost as part of their service. Others charge rental or purchase fees. Factor terminal costs into your total processing cost comparison.

Reporting and analytics: Some processors offer detailed transaction reporting, card type breakdowns, and reconciliation tools. These can be valuable for understanding your payment mix and identifying further savings opportunities.

The key takeaway: when your POS integrates with multiple processors, you can evaluate all of these factors and choose the best fit. When your POS locks you into one option, you accept whatever terms are offered.

Taking Control of Your Payment Processing Costs

Payment processing is one of the largest ongoing costs in hospitality, and it's one of the few costs where the right technology decision can deliver immediate, measurable savings.

The choice comes down to this: do you want a POS system that locks you into one processor at their rates, or a POS system that gives you the freedom to choose, negotiate, and switch?

PowerEPOS gives Australian hospitality venues that freedom. Zero transaction fees from Triniteq. Over 15 processor integrations. Switch processors in one to two hours without touching your POS. Flat monthly pricing that doesn't penalise you for growing your business.

Combined with Australian-made reliability, local support from our Perth-based team, and cloud-hybrid architecture that works even when your internet doesn't, it's a POS system built for how Australian hospitality actually operates.

Ready to find out what you could save?

Call us on 1300 784 666 or fill in our form below and we'll get back to you.