From 1 October 2026, major card networks removed card surcharges in Australia, although businesses still pay to accept card payments. For franchise networks, the change at checkout is only part of the issue.
Customers see one brand, but behind it may be different payment providers, merchant agreements, booking platforms and independently operated locations. Head office therefore needs to know what each operator is paying, which systems have been updated and where responsibility for the response sits.
The new rules are a test of network visibility and coordination. A franchisor does not need to control every merchant agreement or pricing decision, but it does need enough information to understand the commercial effect and support a consistent customer experience.
Payment surcharges have gone, but operator costs remain
The RBA’s review concluded that surcharging was no longer working as intended. Charging different amounts for different payment methods was meant to encourage more efficient choices. Instead, many businesses applied the same surcharge across cards, cash use declined and enforcement proved difficult. Removing surcharges is intended to make payments simpler and advertised prices more transparent.
That is the customer side. On the operator side, Business.gov.au explains that businesses still pay card-processing fees and other payment-related costs. Lower domestic interchange fee caps also took effect on 1 October, but interchange is only one component of the overall cost of accepting cards. A reduction in that component should not be mistaken for the removal of the merchant’s entire bill.
For each operator, two questions matter: how much surcharge income has disappeared, and how have actual payment costs changed? An operator that previously recovered costs through a surcharge is in a different position from one that already incorporated them into prices, although neither fact alone determines whether a price change is warranted.
Payment costs may differ across every location
Locations within one brand may use centrally negotiated terminals, franchisee-selected providers and separate systems for online sales, bookings and delivery. Head office needs a clear map of these arrangements before it can compare costs.
That comparison should consider the total cost and suitability of each arrangement, including fixed and transaction fees, contract terms, integration requirements and accepted payment methods. A lower advertised rate does not establish that switching will benefit a location.
Head office also needs comparable information from operators. Where pricing is unclear, franchisees should obtain current statements and clarification from their providers before the network considers a broader response.
Under the RBA’s timetable, designated card networks and large acquirers must publish specified fee information from 30 October. Large acquirers must report how interchange reductions flow through to merchant service fees from 30 January 2027. Treat those disclosures as evidence for future reviews, not proof that savings have reached operators.
One brand needs a coordinated payment response
The real implementation test is whether the change has reached every payment channel, including the terminal at the counter.
The RBA says most large payment providers it consulted planned to remove terminal surcharging around 1 October and advises businesses to contact their provider for implementation support. For a franchise network, a provider’s plan is not proof that every location’s setup has been updated.
That needs to be checked across in-store terminals, online checkout, booking platforms and integrations. Customer-facing information and staff instructions should match actual system behaviour. Any unresolved provider or integration issue should have a clear owner and escalation path.
Government guidance treats weekend and public-holiday surcharges and genuine non-card booking or service fees separately from card surcharges. They remain subject to their own requirements; this is not permission to relabel a card surcharge.
Head office adds the most value by creating visibility, clarifying responsibilities and giving operators a clear escalation path, without assuming control over each franchisee’s prices, systems or merchant agreement.
Pricing decisions need commercial and legal clarity
Before a network considers a pricing response, the commercial picture needs to be clear. What surcharge income has each operator lost, and what are they paying to accept cards now?
The RBA says businesses can reflect payment costs in overall pricing. Any price adjustment should reflect actual costs, customer expectations and competitive conditions.
A uniform price increase or provider switch is not automatically the right response. Head office can compare provider terms and assess whether network-wide purchasing arrangements make commercial sense. Any recommendation affecting pricing or merchant contracts should be checked against the franchise agreements and with legal advisers. The assessment should account for service, integration and transition costs.
A coordinated network should answer three questions
Before a network settles on its response, I would expect head office to answer three questions:
Have all locations and payment channels removed card surcharges? Check in-store terminals, online checkout, booking systems and relevant integrations.
What is each operator actually paying to accept cards? Compare provider terms and total costs; do not assume fees or savings are uniform.
Which decisions can head office coordinate, and which remain with franchisees? Clarify who owns implementation, provider conversations and any pricing response.
These answers give head office a basis for coordinating a response without assuming every location is identical.
Are Your Network’s Payment Arrangements Ready for the New Rules?
At DC Strategy, we help franchisors understand how regulatory changes affect network economics, operating systems and franchisee responsibilities.
If the new card surcharge rules have raised questions about your network’s payment arrangements, pricing transparency or implementation, let’s talk about what the changes mean for your network and how to respond.
About James Young
James Young is the Managing Director of DC Strategy Group and a Certified Franchise Executive (CFE).
He leads the firm’s consulting, sales, and franchise development work, helping brands expand through end-to-end strategy, legal, recruitment, and marketing services
As a Certified Franchise Executive, James brings both expertise and a deep commitment to sustainable, values-led franchising. He sits on multiple advisory boards and is a trusted voice in the industry, regularly sharing insights on recruitment, strategic expansion, and long-term franchise success.
DC Strategy is Australasia’s leading end-to-end franchise consultancy, offering integrated legal, strategic, recruitment, and marketing services to help brands scale with confidence.