Banning Card Surcharges Cuts Straight into Print Margins

Starting October 1, the Reserve Bank of Australia (RBA, the nation's central bank) requires merchants to stop charging surcharges on debit and credit card transactions across Eftpos, Mastercard, and Visa. Printers, e-commerce stores, and restaurants widely relied on surcharges to pass card processing fees onto buyers. That door is now closed

The Visual Media Association (VMA, the industry body for print and visual communications in Australia) stated it will release a detailed member alert soon outlining the real business impact. Print21's report also went straight to the point: this is not just a minor tweak to payment rules, but a structural shift that will eat into gross margins. American Express confirmed it will voluntarily follow suit and eliminate surcharges from October 1, tightening the squeeze across all major card networks

Because transaction fees do not disappear, they just hide in a different line item within the quote. According to reports, merchants currently pay card processing fees ranging between 1.1% and 3.5% of transaction value. In the past, printers recovered this cost directly via surcharges. After October, printers have only two options left: absorb the cost themselves, or roll it into their list prices

Neither path is easy. Having looked closely at print pricing structures over the years, I know how thin margins already are. Every extra dollar absorbed cuts straight out of profit:

・Absorbing the cost: Keeps external quotes unchanged, but every large run and repeat order bites into net profit. The higher the volume, the worse it hurts

・Rolling costs into list prices: Quotes go up by as much as 3.5%. The first thing clients notice is that prices went up, making market acceptance uncertain

Notably, the RBA also lowered the cap on interchange fees (the wholesale bank clearing fee, usually the largest chunk of merchant fees) from around 0.80% to roughly 0.30%. In theory, this lowers overall card acceptance costs for some businesses. However, VMA Executive General Manager Charles Watson put it plainly: accepting card payments will not become cost-free, the cost structure is simply being reshuffled, and businesses still need to plan accordingly

Taiwan does not currently have a surcharge ban like the RBA's, but this news serves as a good mirror. Whenever clients pay by credit card, third-party payment gateways, or installment plans, merchants handle these fees either by building them into list prices or itemizing them as surcharges. The catch is that most businesses have never actually calculated how much of their margin these fees eat up

Working with small and medium print shops and brand procurement teams, I often spot a shared blind spot: paper, presswork, and post-press finishing are calculated down to the penny, but payment processing fees are dismissed as an inevitable cost that banks always charge, with nobody ever renegotiating rates. Watson's point applies everywhere. Regulatory reform is actually a prime opportunity to review payment provider contracts and make sure you are getting competitive rates

1. Pull transaction totals and fee amounts from card payments over the past six months and calculate what percentage of revenue they represent, so you know your true exposure

2. Compare rates across different payment service providers instead of rolling over contracts negotiated five years ago

3. Give payment options back to clients: steer large orders toward wire transfers or monthly terms, and reserve credit cards for small, incidental orders, easing the fee burden concentrated on major jobs

4. If you ultimately must build processing costs into quotes, explain the rationale clearly through tailored communication rather than quietly raising prices and leaving clients guessing

When brand owners negotiate pricing with print suppliers, they can also ask directly: does this quote account for payment processing costs, and is the calculation reasonable? That is far cleaner than arguing over discrepancies on billing statements later. The Mai Strategy Knowledge Academy consulting team has long helped brands and printers align their procurement and quoting logic. If payment terms or pricing structures give you trouble, reach out to the Mai Strategy Knowledge Academy consulting team. And if you are looking for a commercial printing partner that balances cost control with consistent quality, MINDS has always treated pricing transparency as standard practice in mid-to-high-end fully custom printing

Yes, because who pays payment processing fees is an issue that won't stay confined to Australia. Central banks and financial regulators worldwide have been revising rules toward fee transparency in recent years. In my view, this is a global trend rather than an isolated event. Because printing deals with large ticket sizes and inherently thin margins, the industry is especially sensitive to cost shifts. Reviewing your payment structure early is always smarter than scrambling once new regulations take effect

From October 1, card surcharges can no longer be itemized in Australia. Merchants must either absorb them or roll them into list prices

Merchants currently face card processing fees between 1.1% and 3.5%, directly impacting gross margins

While the Interchange Fee cap dropped from about 0.80% to roughly 0.30%, card acceptance costs will not drop to zero

Unexamined payment processing fees inside quotes remain the easiest hidden cost to overlook

Auditing payment terms and vendor contracts early is always more cost-effective than scrambling after new rules take effect

The most practical takeaway for print manufacturing and brand procurement is simple: pricing transparency is an inevitable task, not something to delay until regulations force your hand. Printers should treat payment processing costs as a standard variable in their pricing models, regularly recalculating rates and comparing options. Using SaaS pricing tools or an ERP that automatically calculates payment costs will be far more accurate than manual estimation. Next time brand owners negotiate supplier contracts, ask whether any unaccounted fees are tucked into the quote structure. Taking the initiative beats discovering eroded margins after the fact

・Print margins may be hit by end of card surcharges