The short answer is yes, but there are some rules around them. For a start, merchants cannot charge more than what they pay in transaction fees. You can either charge differing amounts in EFTPOS fees or choose a fixed percentage/amount for all card payments.

Is charging merchant fees illegal?

Businesses are banned from charging excessive payment surcharges on credit, debit and prepaid card payments. The ACCC will investigate consumer complaints and take enforcement action where necessary.

Is GST paid on merchant fees?

All merchant fees and charges are subject to GST unless your Tax Invoice indicates otherwise.

What are merchant fees?

Merchant fees are charges associated with processing credit cards. This is usually a small percentage over the original price of the product. Merchants are also charged an interchange fee, which allows the bank to authorise a transaction between the merchant’s and the payee’s credit card accounts.

What is a merchant service fee?

The term “merchant fees” covers all the costs associated with processing transactions and maintaining your merchant account. These fees include interchange fees, assessment (or service) fees, and your payment processor’s markup.

What are merchant fees on a credit card?

What are merchant fees? Merchant fees are any fees assessed to the merchant by the card brands, the payment processor you choose to partner with, and any add-ons or services you select.

What do merchant service providers mean by transaction fee?

Merchant service providers use transaction fee to describe the per transaction fee they collect. Depending on your plan, it may also include the percentage applied or authorization fee mentioned above. Assessment fees

How much is a merchant account assessment fee?

Assessment fees Assessment fees are charged by the cardmember associations for various expenses including fraud prevention and network operations, and merchant service providers often pass them along to their customers. The rates per transaction are typically around 0.13% – 0.15%. Scheduled fees

Can a merchant add a surcharge to a transaction?

The “no surcharge” provisions prohibit merchants from adding a surcharge to a transaction to cover some or all of the fee the merchants pay to the card associations.