Card Surcharges Are Ending: What Restaurants and Cafés Need to Do Before 1 October 2026
For years, many restaurants, cafés and takeaway businesses have used card surcharges to recover the cost of accepting electronic payments.
From 1 October 2026, that will change.
Australian businesses will no longer be permitted to apply surcharges to Visa, Mastercard and eftpos transactions. For hospitality businesses operating on tight margins, this means it’s time to review how payment costs impact profitability.
The good news? With some planning, most venues can absorb these costs without significantly impacting profits.
Why This Matters to Hospitality Businesses
In hospitality, card payments dominate.
Many venues now process more than 90% of customer transactions electronically. That means merchant fees are no longer an occasional expense—they’re a significant operating cost.
If your venue turns over:
- $500,000 per year
- $1 million per year
- $2 million per year
Even merchant fees of 1% to 1.5% can represent thousands of dollars annually.
Understanding this cost is the first step towards managing it.
Five Things Restaurant Owners Should Do Now
1. Review Your Merchant Fees
Many venue owners have not reviewed their payment processing costs in years.
Check:
✓ Merchant fee percentage
✓ EFTPOS terminal fees
✓ Monthly account fees
✓ Online ordering payment fees
✓ Delivery platform payment costs
You may be paying more than necessary.
2. Review Menu Pricing
Many venues adjust menu prices annually.
If merchant fees are currently recovered through surcharges, now is the time to assess whether menu prices adequately reflect the true cost of serving customers.
Small price increases across selected menu items can often recover these costs without impacting customer demand.
3. Improve Gross Profit
The easiest dollar to earn is the dollar you don’t waste.
Review:
✓ Food costs
✓ Portion control
✓ Wastage
✓ Supplier pricing
✓ Inventory management
Even a small improvement in food cost percentage can offset merchant fees.
4. Increase Average Spend Per Customer
Merchant fees become less significant when customers spend more.
Consider:
✓ Upselling beverages
✓ Meal bundles
✓ Dessert offers
✓ Loyalty programs
✓ Catering opportunities
Increasing average transaction value can have a powerful effect on profitability.
5. Know Your Numbers
The venues that thrive are not necessarily the busiest.
They are the venues that understand:
✓ Food cost percentage
✓ Labour percentage
✓ Prime cost
✓ Gross profit margin
✓ Net profit margin
Knowing your numbers allows you to make pricing decisions confidently.
Don’t Wait Until October 2026
The removal of card surcharges isn’t just a compliance issue.
It’s an opportunity to review profitability and ensure your venue is operating as efficiently as possible.
At Restaurant Bookkeepers, we specialise in helping hospitality businesses understand their numbers so they can make better decisions and improve profitability.
If you’re unsure how these changes will affect your venue, now is the perfect time to review your pricing, costs and margins.
Need Help?
Contact Restaurant Bookkeepers to discuss how these changes could impact your café, restaurant or takeaway business.
Because great hospitality businesses deserve great numbers.
