No More Card Surcharges: How Can We Support Small Businesses Now?

For many Australians, paying for a coffee, lunch or a small purchase by card has become second nature.

Tap your phone, tap your card and you’re done. But for the small business on the other side of that transaction, accepting payments comes with costs.

From 1 October 2026, businesses can no longer add a surcharge for payments made using Visa, Mastercard, American Express or eftpos cards. While this removes an additional charge at the checkout, payment processing costs still exist. Businesses will need to consider how those costs fit into their overall pricing and expenses.

For a large business, this may be one expense among many. For a small business owner, every dollar can matter. So, how can businesses adapt, and what can customers do to support the local businesses they want to see succeed?

Imagine your local mobile coffee van. It might be operated by one person who starts before sunrise, buys supplies, drives to their location, sets up, makes hundreds of coffees and cleans everything afterwards. When the van closes, there may still be bookkeeping, ordering and customer messages to deal with.

A $5 coffee might seem like a small purchase, but the price needs to cover ingredients, equipment, wages, fuel, insurance and other operating expenses. Across hundreds of transactions, even small differences in costs can affect the business’s margins.

One option is to incorporate payment processing costs into overall prices. A coffee previously priced at $5 might become $5.05 or $5.10, with the customer seeing the full price upfront. Businesses must ensure their pricing is clear and avoid misleading customers about the reasons for any increases.

Business owners can also review their payment arrangements. Comparing providers, negotiating transaction rates and checking monthly or terminal fees may reveal opportunities to save. A payment plan that suited the business when it first opened may no longer be the best fit for its current sales volume.

Another option is to offer a discount for cash or PayID payments. For example, a business might display a full coffee price of $5.10 and offer a discounted price of $5 for those payment methods. The discount must be disclosed before customers order or pay, and the discounted price should not be displayed more prominently than the full price.

It is also a useful time to review the wider business. Unnecessary subscriptions, stock wastage, supplier costs and inefficient administration can all eat into profits. Reviewing the menu, product range or margins may help identify where a combination of small savings and sensible price adjustments could make a difference.

Customers have a role to play too. Choosing a local coffee van, independent retailer, hairdresser or tradie can help keep money flowing through the community. You do not need to shop locally every time for your support to matter. Regular small purchases can make a meaningful difference.

It also helps to recognise that small businesses cannot always match the prices of large chains. The person serving you may also be responsible for ordering supplies, maintaining equipment, paying bills and doing the bookkeeping. A slightly higher price does not necessarily mean they are making a large profit.

Before asking, “Can you do it cheaper?”, consider whether the price fairly reflects the work involved. Customers are entitled to compare prices and seek value, but business owners also need to charge enough to remain viable.

Support does not always require spending money. Leaving a genuine positive review can help new customers discover a business. Recommending a great coffee van, reliable mechanic or helpful retailer to a friend can be equally valuable.

Following a business online, sharing a useful post or engaging with content you enjoy can also help increase its visibility. For an owner managing their own marketing alongside everything else, those small gestures can be appreciated.

Paying promptly is another practical way to help. If you engage a local tradie, consultant, photographer or other small business, paying their invoice on time helps them meet their own commitments. Delayed payments can place pressure on cash flow, even when the business is busy.

Supporting small businesses does not mean spending beyond your budget or ignoring price. It means recognising the work and costs behind the products and services you value, and choosing to support them where you can.

The removal of card surcharges gives businesses a reason to review their pricing, payment providers and operating expenses. It also gives customers an opportunity to think about how they support the businesses they rely on.

The next time you buy a coffee from your local van, pick up lunch from an independent café or hire a local tradie, remember that your purchase supports someone’s livelihood. A genuine review, a recommendation or an invoice paid on time can help too.

If you are a small business owner and are unsure how the card payment changes affect your pricing or customer payments, Lawgix can help you understand your legal obligations and review your approach before you make changes.