📢 Surcharge Ban from 1 Oct 2026 — your merchant fee rate now hits your margin directly.  Compare now →

Compare Merchant Fees
in Australia

Find the cheapest card payment rates for your business. We compare Square, Tyro, Zeller, the banks and more — updated for the RBA surcharge ban.

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$0Lock-in with UrPay
500+POS integrations
0.85%From (negotiated)
24 hrsFree quote turnaround
Full Market Comparison

Merchant Fee Comparison — Australia 2026

All major providers, compared on the factors that actually matter after the surcharge ban. Updated June 2026.

Provider Rate Type Typical Rate Terminal Fee Lock-in Best For
Square Flat rate 1.6% $0/mth
(Square Reader)		 None Small or casual volume
Tyro Blended 1.2–1.8% $29–$49/mth 3-yr common Mid-size retail
Zeller Flat rate 1.4% $0/mth None Small business, café
Clover Bundled 1.5–2.5%+ $29–$79/mth Yes Hospitality, retail
ANZ / NAB / WBC Bundle rate 1.5–2.2% $0–$30/mth Yes Existing bank customers
UrPay Recommended Negotiated blended 0.85–1.4%* $0/mth None Any size · 500+ POS

* Rate depends on monthly card volume and card mix. Get a personalised quote →

Why UrPay rates are lower: UrPay operates on a negotiated blended rate model — your rate is set based on your actual card mix and monthly volume, not a one-size-fits-all flat rate. Businesses on flat-rate plans (Square, Zeller) with predominantly debit card transactions typically overpay compared to their actual cost of acceptance.
Understanding Your Fees

What Are Merchant Service Fees?

The Basics

A merchant service fee (MSF) is the fee charged by your payment provider every time a customer pays by card. It's expressed as a percentage of the transaction — for example, 1.4% on a $100 sale means you pay $1.40 per transaction.

These fees cover the cost of card network access (Visa, Mastercard), fraud protection, transaction processing infrastructure, and your provider's margin.

Flat Rate vs Blended Rate

Flat rate: One percentage for every card transaction regardless of type. Simple but often overpriced — Square charges 1.6% whether you're processing a domestic debit card (true cost ~0.5%) or an international Amex.

Blended/negotiated rate: Your rate reflects your actual card mix and volume. If 70% of your transactions are domestic debit, your blended rate should reflect that. Almost always cheaper for businesses doing over $50K/month.

Hidden Fees to Watch For

Terminal/Hardware Rental
$0–$79/month. Some "free" terminals bundle locked pricing.
PCI Compliance Fee
$10–$25/month. Often buried in statements.
Monthly Account Fee
$0–$30/month. Square and Zeller charge $0. Banks often don't.
Chargeback/Dispute Fees
$15–$35 per chargeback regardless of outcome.
Savings Calculator

See How Much You Could Save

Move the sliders to match your business. See your current annual card cost vs what you could pay with a negotiated rate.

Merchant Fee Calculator

Adjust your volume and current rate to see your saving potential.

Current annual cost
$9,600
UrPay est. annual cost
$7,200
Potential annual saving
$2,400

UrPay estimate based on 1.2% blended rate. Your actual rate depends on volume and card mix. Get your real quote →

Buyer's Guide

What to Look For Beyond the Rate

The rate is the biggest lever — but it's not the only one. Four things that change the real cost.

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Terminal & Hardware Fees

Some providers advertise "no monthly fees" but wrap hardware costs into a locked rate agreement. A $0/month terminal at 1.8% can cost more than a $29/month rental at 1.2%. Calculate the total cost, not just one line.

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PCI Compliance Fees

Payment Card Industry (PCI) compliance fees are often charged separately — $10–$25/month is typical. Some providers waive them for compliant setups. Ask specifically whether PCI is included or billed separately.

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Monthly Account Fees

Square and Zeller charge $0/month in account fees. Banks and specialist acquirers often charge $10–$30/month. On a $20K/month volume, a $25 account fee adds 0.125% to your effective rate.

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Lock-in Contracts

Tyro's standard contract is 3 years. The major banks typically require commitment. After the surcharge ban, locked merchants have no ability to renegotiate or switch. A no-lock-in provider protects your flexibility.

Deep-Dive Comparisons

Compare by Provider

Detailed head-to-head comparisons: UrPay vs each major provider.

UrPay vs Square UrPay vs Tyro UrPay vs Zeller UrPay vs Clover UrPay vs Big 4 Banks

Also: Surcharge Ban Guide →

FAQ

Frequently Asked Questions

What is a merchant service fee?
A merchant service fee (MSF) is the fee charged by your payment provider or acquiring bank each time a customer pays by card. It's typically expressed as a percentage of the transaction value — for example, 1.4% on a $100 sale means you pay $1.40 to process that payment. The fee covers card network access, transaction processing, and your provider's margin.
What's the difference between a flat rate and a blended rate?
A flat rate is a single percentage applied to every card transaction regardless of card type — Square and Zeller use this model. A blended rate averages across your actual card mix (debit, credit, domestic, international) and is usually lower for businesses with a high proportion of domestic debit transactions, which cost significantly less to process than international credit cards.
What merchant fees are tax deductible?
Merchant service fees are an ordinary business expense and are fully tax deductible in Australia. Terminal rental fees, PCI compliance fees, and monthly account fees are also deductible. Keep your provider statements as records — the ATO treats these as cost of doing business.
Can I negotiate my merchant fees?
Yes — if your provider offers a negotiated or blended rate model. Square and Zeller use fixed flat rates with no negotiation. Providers like UrPay, the major banks, and some specialist acquirers will negotiate based on your monthly volume. The more you process, the more leverage you have. Even a 0.2% reduction on $500K annual volume saves $1,000 per year, every year.
Why does my merchant fee matter more after the surcharge ban?
From 1 October 2026, card surcharges are banned in Australia. Previously, many businesses passed their merchant service fees on to customers as a surcharge at the point of sale — that option disappears. Your merchant fee rate will now come directly out of your margin on every card transaction. This makes the rate negotiation opportunity before October one of the most important financial decisions for a merchant this year.
How do I switch merchant providers?
The process typically takes 5–10 business days. You'll need to sign a new merchant agreement, arrange terminal hardware (return old, receive new or re-configure existing), and update any payment links or online checkout integrations. Most reputable providers handle setup and offer full onboarding support. The key step is comparing quotes before you commit — not all providers advertise their best rates publicly.

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