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What is a good merchant rate in Australia?

Short answer

As a rough guide, indicative Australian averages sit around 1.37% for in-person payments and 1.78% online, with small-business effective rates commonly landing between 1.1% and 2.5%. Whether a rate is genuinely “good” for you depends on your card mix, average ticket size and channel, so the benchmarks are a starting point rather than a target. This is general information and we cannot guarantee savings.

Last updated: 30 June 2026

Benchmarks to judge a rate against

A useful starting point is the set of indicative Australian averages: roughly 1.37% for in-person card payments and around 1.78% online, while small-business effective rates commonly fall between 1.1% and 2.5%. Treat these as indicative reference points, not guarantees — a café taking mostly low-value debit taps has a very different cost profile from an online store taking high-value international credit cards. If your effective rate sits noticeably above the upper end of those ranges for your channel, it is worth understanding why.

What “good” depends on for your business

The same headline percentage can be a good deal for one business and a poor one for another. The main drivers are your card mix (debit is generally cheaper to accept than credit, and domestic cheaper than international), your average ticket size (fixed per-transaction components hurt small tickets more), and your channel (online and card-not-present is typically dearer than in-person). For debit-heavy businesses, whether least-cost routing is enabled can also move the number meaningfully.

Pricing models change how you should read the rate

Flat-rate pricing charges one percentage across all card types — simple and predictable, but you may overpay on cheap cards to subsidise the expensive ones. Interchange-plus charges interchange plus a fixed, visible margin, so your rate moves with your actual card mix and the margin is easy to compare. Tiered or bundled pricing groups transactions into rate bands, which can obscure what you are really paying. We describe these neutrally and do not attribute specific rates to named providers; the right model depends on your mix, and comparing offers is the practical way to judge a good rate.

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 considered a good merchant rate in Australia?
There is no single number, but indicative averages of around 1.37% in-person and 1.78% online give a reference point, with small-business effective rates commonly 1.1%–2.5%. A “good” rate is one that is reasonable for your specific card mix, ticket size and channel.
Is a flat rate or interchange-plus better?
It depends on your business. Flat-rate is simple and predictable but can overcharge on cheaper cards, while interchange-plus exposes the true interchange cost plus a visible margin, which suits businesses that want transparency and have a favourable card mix.
Why is my rate higher than the average?
Common reasons include a card mix weighted toward credit or international cards, a high share of online or card-not-present payments, small average ticket sizes, or a pricing model that bundles costs. Comparing your rate against the market helps identify whether it is justified.
Does my industry affect what a good rate looks like?
Yes. Industries differ in average ticket size, debit-versus-credit mix and online share, all of which affect the effective rate, so a good rate for a takeaway shop may differ from one for a dental practice.
Can you guarantee I will get a good rate?
No. This is general information only, and your final rate depends on your provider, pricing model and transaction profile. Comparing offers is the practical way to judge whether your rate is competitive.
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