If you have been watching the news about Australia's card surcharge changes, you are probably wondering what it means for your small business. From 1 October 2026, businesses will no longer be able to surcharge card payments. The Reserve Bank of Australia concluded that surcharging no longer works as intended and has agreed to allow card networks to enforce no-surcharge rules from that date.
This article covers what's changing, what's staying the same, and the new default Merchant Service Fees (MSF) for Pinch customers connected to Australia's three leading account platforms, Xero, QuickBooks and MYOB.
Whether you're already using Pinch or looking at it for the first time, you'll find the detail you need here.
The RBA's Review of Merchant Card Payment Costs and Surcharging concluded that card surcharging should end on 1 October 2026. From that date, Visa, Mastercard, eftpos and American Express will each enforce no-surcharge rules across credit, debit and prepaid cards.
The RBA found that surcharging had become complex and confusing for businesses and customers. In response, interchange fee caps are also being lowered to help reduce the cost of accepting card payments, particularly for small businesses.
From 1 October 2026, businesses will no longer be able to apply surcharges to card payments. That changes how payment costs show up for businesses using Pinch, and it means our default card pricing needs to reflect the post-surcharge environment.
The RBA is also reducing interchange caps as part of these reforms.
Because of that, Pinch is choosing to pass the entirety of those savings through to our merchants in the form of a 25 basis point reduction in our standard merchant fee.
Pinch understands that the impact of these changes will be far reaching, and may change the way businesses collect, and manage payments in their business. We hope that our changes are a positive step towards improving your experience as a Pinch customer.
In addition to the changes to card pricing, we are also removing surcharging for BECS Direct Debit. We have made that choice because it aligns with Pinch's mission to reduce friction for payers. It also supports stronger pre-approval adoption by making the payment experience simpler and more consistent across the payment methods customers use through Pinch.
Read more about our position on surcharging in this article from 2024.
Most of your Pinch pricing isn't changing. Direct debit rates are moving to 1.00% + 30c per transaction, capped at $3, and surcharging on direct debit is being removed. Dispute fees stay at $35 for cards and $25 for direct debits. Dishonour fees for direct debit remain $5, and card dishonour fees remain equal to the fee up to a $5 cap.
Transfer fees for direct debit remain $1. Your existing payment workflows, accounting integrations and pre-approval settings continue to work exactly as they do today.
Our Pricing Information page on the Pinch Payments website will be updated come October 1st to reflect the new Default Merchant Service Fees of Pinch.
The changes apply to card pricing and to direct debit pricing for merchants of the Pinch Payments platform directly. If you signed up to Pinch through our website, were referred by an accountant or bookkepeer, and you use it to help you collect payments on your Xero, QuickBooks or MYOB invoices this very likely means you.
If you accept card payments through Pinch, you'll see updated rates from 1 October 2026 in your account in the "Getting Paid" section of the settings.
If you use direct debit, surcharging will also be removed and the updated direct debit rate will apply.
For existing merchants, Pinch will automatically update the fee components applied across invoices, payment plans and subscriptions. You do not need to manually change these settings yourself.
New merchants may have already noticed that the Pinch Merchant Portal no longer allows surcharging to be enabled. We've already removed that option to help prevent a poor payer experience and to keep the setup aligned with the direction of these changes.
For businesses using Pinch through the Merchant Portal, including those connected to Xero, QuickBooks and MYOB, the following card rates apply from 1 October 2026:
| Transaction Type | Rate |
|---|---|
| Domestic Visa/Mastercard | 1.70% + 30c |
| Domestic Amex | 2.50% + 30c |
| International Visa/Mastercard | 3.90% + 30c |
| International Amex | 3.90% + 30c |
Direct debit pricing is moving to 1.00% + 30c per transaction, capped at $3. This applies to all BECS Direct Debit transactions processed through Pinch, and surcharging on direct debit is also being removed.
| Transaction Type | Rate |
|---|---|
| Direct Debit | 1.00% + 30c (Capped to $3) |
| Fee Type | Amount |
|---|---|
| Dispute Fee (Cards) | $35 |
| Dispute Fee (Direct Debit) | $25 |
| Dishonor Fee (Direct Debit) | $5 |
| Dishonor Fee (Cards) | Equal to fee, up to $5 cap |
| Transfer Fee (Direct Debit) | $1 |
Before 1 October 2026, review how you currently pass on card costs to your customers. If you surcharge today, think about how absorbing these fees will impact you, and what you might consider doing to manage this.
If you have questions about how these changes affect your account, reach out to the Pinch Payments Support team, who can assist you with our available resources. We're here to help you work through the detail without overcomplicating things as every business is different, and our industry expertise may be valuable for you.
If you're on custom, commercial or negotiated pricing, these default changes do not automatically replace your agreed rates. This applies across Merchant Portal commercial arrangements and platform ISVs operating on negotiated terms with Pinch.
If you already have a specific pricing agreement in place that is lower than the MSF changes, that agreement remains the reference point unless Pinch has confirmed a separate change with you. If you're unsure which pricing structure applies to your account, contact the Pinch team and we'll help you confirm it.
The card surcharge ban takes effect on 1 October 2026. From that date, Visa, Mastercard, eftpos and American Express will enforce no-surcharge rules. Businesses will no longer be able to add a surcharge when a customer pays by card.
Not because of the regulation itself, but yes in practice for Pinch customers. The RBA changes are focused on card payments, but Pinch has chosen to also remove surcharging on direct debit and reduce direct debit pricing to 1.00% + 30c per transaction, capped at $3.
Yes. Pinch pre-approvals, payment plans and automatic reconciliation continue to work exactly as they do now. The fee components across payments, payment plans and subscriptions will be updated automatically by Pinch, so merchants do not need to make those changes themselves.
Start by reviewing your current pricing to understand how much or if you rely on surcharges. You can do this by downloading your monthly statements from the Settlements tab, review your cost of acceptance and breakdown between Cards and Direct Debits.
We recommend speaking with your accountant or business advisor to help you navigate these changes as they are in a position to provide this type of financial advice. Pinch is unable to provide you direct advise of any nature that may be interpreted as financial advise.