From 1 October 2026, surcharges on card payments were removed across Australia’s major payment networks. While patients may welcome simpler, more transparent pricing, the change presents medical practice owners with an important question: who will now carry the cost of accepting card payments?
The Reserve Bank of Australia’s reforms allow eftpos, Mastercard and Visa to prohibit surcharges on debit, prepaid and credit card transactions. American Express, UnionPay and PayPal have also elected to remove surcharging. However, the change applies specifically to card payment surcharges and does not prevent businesses from applying unrelated charges such as weekend or public holiday surcharges.
The cost has not disappeared
Many medical practices previously passed merchant fees directly to patients through a card surcharge. Although that surcharge has now disappeared, the underlying cost of accepting card payments remains.
Practices will need to determine whether they can absorb these costs or whether their broader fee structure should be reviewed. This is particularly relevant for specialist practices that process a high volume of payments or have larger average transaction values. Even a relatively small merchant fee can have a meaningful effect on profitability when applied across a full year of transactions.
The reforms also lowered interchange fee caps and introduced greater transparency around card payment fees. These measures are designed to reduce payment costs and make it easier for businesses to compare providers, but practices should not assume every saving will flow through automatically.
What should practice owners review?
Before considering any changes to patient fees, practice owners should understand exactly what they are paying to accept cards.
This means reviewing:
Merchant facility agreements
EFTPOS terminal and rental charges
Online payment platform fees
Payment processing reports
The practice’s mix of eftpos, Visa, Mastercard and American Express transactions
Integration with practice management and online payment systems
Opportunities to renegotiate fees or compare providers
Practices should also confirm that surcharges have been removed across all payment channels, including terminals, online gateways, invoices and integrated practice management software.
What about paying large expenses by credit card?
The changes may also affect doctors who use credit cards to pay tax liabilities, supplier invoices and other significant business expenses.
Credit cards can provide additional time to manage cash flow and may offer reward points. However, the value of any points must be assessed against the card’s fees, payment terms and interest costs. The strategy is only effective when the balance can be repaid by the due date, as interest can quickly outweigh any rewards or cash flow benefit.
Card providers may also review their reward programs in response to the broader payment reforms, so doctors who use points strategically should continue monitoring changes to their card terms.
Understand the numbers before acting
For patients, the removal of card surcharges should create a simpler payment experience and reduce unwelcome surprises at reception. For practices, however, it creates a need to examine payment costs more closely.
Medical practice owners should avoid simply absorbing the change without first understanding its effect on margins. Speak with your adviser to review your merchant costs, practice fee structure and cash flow strategy, and ensure your practice is well positioned under the new payment rules.
Nick Fennessy, Director - The Bongiorno Group
As this general advice has been prepared without taking account of your objectives, financial situation or needs, you should consider the appropriateness of this advice before acting on it.
