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What is the average merchant fee in Australia?

Short answer

Indicative averages put in-person card acceptance at roughly 1.37% and online at around 1.78%, while small-business effective rates commonly range from about 1.1% to 2.5%. These are indicative figures rather than a fixed price — the spread is driven by card mix, average ticket size and pricing model. This page reports the typical numbers; it is general information, not advice.

Last updated: 30 June 2026

The indicative averages

On indicative figures, the average cost to accept a card in person is around 1.37%, while online or card-not-present payments average closer to 1.78%. For small businesses specifically, effective rates — the all-in cost as a percentage of card turnover — commonly sit between 1.1% and 2.5%. We always describe these as indicative because no single rate applies to every business; they describe the middle of a wide distribution rather than a price you are guaranteed to pay.

What drives the spread

Three factors explain most of the variation around those averages. Card mix matters because debit is generally cheaper to accept than credit, and domestic cards cheaper than international ones, so a business taking mostly debit taps sits lower in the range. Average ticket size matters because any fixed per-transaction component weighs more heavily on small payments, pushing low-ticket businesses higher as a percentage. And the pricing model matters: a flat rate blends all card types into one number, interchange-plus tracks the underlying interchange plus a margin, and tiered pricing sorts transactions into bands — each can land a business at a different point in the range even with similar card volumes.

Source: RBA Review of Merchant Card Payment Costs and Surcharging — Conclusions Paper (March 2026).

This page is general information only and is not legal or financial advice. The RBA sets the final rules and timing — confirm current details at rba.gov.au.
Common questions
Related questions
What is the average merchant fee in Australia?
On indicative figures, around 1.37% for in-person payments and about 1.78% online, with small-business effective rates commonly between 1.1% and 2.5%. These are indicative averages, not a fixed price.
Why do online merchant fees average higher than in-person?
Card-not-present transactions carry more fraud and processing risk, which is reflected in higher acceptance costs. That is why the indicative online average of around 1.78% sits above the in-person average of around 1.37%.
What makes some businesses pay more than the average?
Mainly card mix, average ticket size and pricing model. A business with more credit or international cards, small average tickets, or a bundled pricing structure tends to sit higher in the 1.1%–2.5% range.
Are these averages the same as what I will pay?
Not necessarily. They are indicative figures describing the middle of a wide range; your own effective rate depends on your provider, pricing model and transaction profile.
Will the 2026 interchange cuts change these averages?
They could lower the interchange component for many businesses from 1 October 2026, but the Merchant Service Fee itself is not capped, so any change to your own rate depends on whether your provider passes the cut through.
Keep reading
What is a good merchant rate in Australia? →Will my merchant fees go down in 2026? →What is least-cost routing and should I turn it on? →Do I stop paying merchant fees after the surcharge ban? →Will my fees change? →All questions →
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