New Reserve Bank of Australia (RBA) data shows that merchant card fees have hit record levels, increasing costs for businesses and higher surcharges for consumers.
The data, released as part of the RBA’s Review of Merchant Card Payment Costs and Surcharging, indicates that eftpos debit fees rose by 33.3 per cent in the last quarter. Visa debit fees increased by 6.1 per cent, while Mastercard debit fees rose by 7.7 per cent. Credit card fees also climbed, with Visa and Mastercard both up 5.5 per cent and 6.7 per cent, respectively, reaching 0.96 per cent.
Peter Drennan, Analyst at the Independent Payments Forum (IPF), said the figures now include data from larger payment facilitators and additional acquirers, likely including international firms and local fintechs.
“Many of these companies have recently increased market share and often charge high blended rates that combine debit and credit card fees, leading to higher surcharges for consumers,” Drennan said.
The rise in fees comes as Australians are using cards more than ever, with debit cards increasingly replacing cash for everyday purchases. In 2024, total card spending reached $1.04 trillion, with debit card transactions growing by 8.1 per cent to $609 billion.
Brad Kelly, Co-Founder of the IPF, criticised the rising fees, arguing they disproportionately impact small businesses, which then pass costs on to consumers.
“Until these fees can be brought under control, any ban on surcharging is simply unfair and damaging to Australian small business. The current situation costs every single one of us way too much, every time we shop.”
Kelly also claimed that large businesses secure special arrangements with banks and card providers, leaving small businesses and their customers to pay higher fees.
The RBA review is considering whether regulatory changes are needed to reduce merchant card payment costs and assess the effectiveness of the current surcharging framework.
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