As merchants prepare for Australia's card surcharge changes, they're likely to ask more questions about payment pricing.
As we move closer to 1 October 2026, you may be getting more questions from merchants about payment costs, pricing models and what the upcoming card surcharge changes mean for their business.
You’re not expected to become a payments expert or provide individual pricing advice. However, understanding the basics can help you have clearer conversations, share the right resources and know when to involve a payment specialist.
Why merchants will need more clarity about payment pricing
From 1 October 2026, businesses in Australia will no longer be permitted to apply a surcharge to Visa, Mastercard, eftpos or American Express card payments.
Payment processing fees aren’t disappearing. Applicable payment processing fees will continue to apply after 1 October 2026, but those card payment costs can no longer be recovered through a separate surcharge on the affected card payments.
Merchants that currently surcharge may therefore start looking more closely at:
- The fees that apply to their account.
- Whether their fees will change or if they could be eligible for different pricing.
- How much surcharge revenue they currently receive.
- How they will manage payment costs from 1 October.
- Whether their current payment arrangement continues to meet their needs.
Because payments are often part of the software experience, merchants may bring these questions to you before speaking with their payment provider.
What questions might merchants ask?
You may hear questions such as:
- Will my payment fees change?
- Will I receive a discount or lower pricing?
- Where can I find the fees that currently apply to my account?
- Would another payment provider be cheaper?
- What is blended pricing?
- What is interchange-plus-plus, or IC++?
- Should I move to a different pricing model?
- Can I continue surcharging through another provider?
- What should I do before 1 October?
You don’t need to have every answer.
General questions about the reforms can be addressed using our Partner Messaging & FAQ Guide and Merchant Resource Hub. Questions about a merchant’s individual fees, future pricing or account configuration should be referred to the appropriate payment specialist.
Why merchants are asking about blended pricing and IC++
As merchants review their payment costs, you may hear the terms ‘blended pricing’ and ‘IC++’.
These are different ways of structuring and presenting payment processing fees, and a high-level understanding can help explain why comparing pricing is not always as simple as looking at one headline rate.
Blended pricing
With blended pricing, multiple components of the payment cost are generally combined into a simpler rate or fee structure.
The exact arrangement can vary, but merchants usually see fewer individual fee categories than they would under IC++.
Depending on the arrangement, blended pricing may offer benefits such as:
- A simpler, more predictable fee structure.
- Easier reconciliation.
- Fewer fee categories to interpret.
- Less time spent analysing payment statements.
This can be particularly useful for small and medium-sized businesses without a dedicated finance or payments team.
IC++
With IC++, different components that contribute to the cost of processing a card payment are shown separately. These may include interchange fees, card-scheme fees and the payment provider’s margin.
Depending on the merchant’s transaction mix and reporting arrangements, IC++may involve greater variability in payment costs and require more detailed reconciliation or analysis.
Some of these costs can vary depending on factors such as the type of card used, where it was issued and how the payment was made.
This can provide more visibility into the components of payment costs. However, it can also mean:
- More complex statements.
- Less predictable costs.
- More reconciliation work.
- A greater need to analyse changes across transaction types.
IC++ is not simply a more detailed version of blended pricing. It is a different pricing structure that may require more time, information and internal capability to manage effectively.
It may also not be available as a straightforward alternative for every merchant or partner arrangement.
The key takeaway: More pricing detail can offer greater visibility, but it can also bring greater complexity and less predictability.
Why isn’t there one pricing model that suits every merchant?
A merchant may ask whether one pricing model is better than another. In practice, the answer depends on the business.
Factors that can influence a merchant’s payment costs and pricing needs include:
- The mix of debit, credit, consumer, commercial and international cards they accept.
- The number and average value of their transactions.
- Whether payments are made online, in person or on a recurring basis.
- The level of reporting and predictability they need.
- Their ability to interpret and manage a more detailed pricing structure.
Payment arrangements are about more than the transaction rate. Merchants may value how well their payments work with their software, as well as settlement, reconciliation, reporting, security, automation and support.
A lower advertised rate may not represent better overall value if the solution doesn’t suit the way the business operates.
This is why IC++ shouldn’t be presented as an easy switch or an automatically better outcome. For some merchants, the simplicity and predictability associated with a blended arrangement may be important considerations when assessing their payment needs.
How can you respond to merchant questions?
A practical conversation doesn’t require you to explain every element of payment pricing. Here are some pointers:
1. Clarify what the merchant needs
Start by understanding the question behind the question.
Are they trying to locate their current fees? Are they concerned about future pricing? Are they comparing providers, or do they simply want to understand what the reforms mean?
This will help you identify whether they need general guidance or account-specific support.
2. Reinforce the key change
Keep the explanation clear and consistent:
From 1 October 2026, businesses in Australia will no longer be permitted to apply a surcharge to Visa, Mastercard, eftpos or American Express card payments. Payment processing fees will continue to apply, but those costs can no longer be recovered through a separate card surcharge.
Changing payment providers will not enable a merchant to continue surcharging card payments after 1 October 2026.
3. Share factual resources
Direct merchants to the Merchant Resource Hub, where they can find:
- An overview of what is changing.
- Answers to common questions.
- Guidance on checking whether they currently surcharge.
- Information on locating their payment fees.
- Practical steps to help them prepare.
You can also use the Partner Messaging & FAQ Guide when preparing your sales, onboarding and support teams.
4. Know when to refer
Involve the appropriate payment specialist when a merchant asks about:
- Their individual fees or account configuration.
- Future pricing.
- Commercial negotiations.
- Whether another pricing model would suit them.
- Changing providers or payment arrangements.
- Interpreting detailed fee or transaction data.
Referring an account-specific question to a payments service provider expert helps ensure the merchant receives accurate information based on their circumstances.
Partners should not quote, estimate or compare payment pricing rules unless specifically authorised to do so.
How to prepare your team
To help enable your teams for customer conversations, you can:
- Share the Partner Messaging & FAQ Guide with customer-facing teams.
- Make sure they know where to find the Merchant Resource Hub so they can share the link.
- Confirm where individual pricing and commercial questions should be referred.
- Advise them to avoid making assumptions about future fees or product changes.
- Review customer communications for references to surcharging, payer-pays or card cost recovery.
- Check where surcharging may be configured within your software or payment experience.
- Provide our payments support team contact details so they can refer any pricing specific questions from our merchants.
Depending on the merchant’s setup, surcharging may be controlled by the payment provider, software platform, website or another integrated solution. Where the setup is unclear, work with the relevant product and payment teams rather than assuming it is managed in one particular system.
You’re not expected to have every answer
The upcoming surcharge changes will naturally lead to more questions from merchants.
Your role isn’t to recommend one pricing model over another or provide detailed pricing advice. It’s to help merchants understand the change, share consistent information and connect them with the right support when their questions become account-specific.
The Partner Resource Hub brings together the latest approved messaging, FAQs and supporting resources to help you do exactly that.
As new information becomes available, we'll continue updating these resources to support you and your teams. Visit the Partner Resource Hub