Australia’s card-surcharging rules changed on 1 October 2026. Today we can no longer add surcharges to payments made through designated card networks, while lower domestic interchange caps also began applying.

The difficulty for retailers is that the full effect on merchant-service costs will not be clear immediately. The first industry data is due by 30 October 2026, pass-through information from large acquirers is due from 30 January 2027, and enhanced merchant statements will begin from 1 April 2027.

This staged release is frustrating for retailers who need to understand their costs now. In the meantime, the most practical approach is to establish a reliable baseline and review the available information as each official milestone arrives.

The POS Solutions AI chatbot schedule is designed to help retailers do that. It can organise the available information, compare payment costs over time and help identify questions to put to a payment provider. However, a retailer’s own contract, pricing plan, transaction volume and card mix will determine the final result. If you send us your quotes or contracts, we will run them through the AI.

Why is the information released in stages? 

The information is being released in stages because different parts of the changes depend on different reporting periods, and the change has set implementation dates.

The first reports provide industry and network data. Later reports are intended to show how changes in interchange fees flowed through to merchant-service fees. From April 2027, we should receive enhanced merchant statements that hopefully will make payment-cost information easier for retailers to identify and compare.

The first report, due by 30 October 2026, covers the quarter from 1 July to 30 September 2026. This period ended before the new rules began, so it provides a pre-change baseline rather than a direct measure of the effect on a retailer’s costs. The information will be useful for comparison, but it will not automatically determine what an individual retailer should be paying. A retailer’s result will still depend on its payment contract, pricing model, provider charges and card mix.

The review schedule

POS Solutions plans to release the available information approximately two weeks after each milestone. This allows time for relevant reports and provider information to become available and a distillation to be done and checked.

Review 1: October 2026

The first review establishes the retailer’s current position after the new rules began on 1 October 2026.

The review can examine whether the retailer’s statements contain enough detail to identify:

• Total card-acceptance costs.
• Domestic debit and credit transactions.
• Foreign-issued card transactions, where applicable.
• Fixed fees and percentage-based charges.
• Terminal, gateway, platform and account charges.
• The relationship between POS sales and settlement totals.

A reliable starting point is important because a retailer needs its own baseline before it can measure any changes.

Review 2: November 2026

The second review follows the first reporting deadline of 30 October 2026. The report covers the quarter from 1 July to 30 September 2026. Because this information is before the surcharge ban and related changes began, it only provides a pre-change reference point. We hope that this information will help our clients compare themselves to the broader market conditions, hopefully giving us a precise calculation of what an individual business should have saved.

Review 3: February 2027

Large acquirers must begin publishing information about how reductions in interchange fees flowed through to merchant-service fees. The big question is how the answer to the government will be framed. The justification for the changes.  We expect that it will be only partly true as we think that other fees like merchant-service costs may be increased or added, such as security fees, scheme fees, acquirer margins, fixed charges, terminal costs, gateway charges, etc.

In any case the published information will give retailers a stronger basis for asking their provider to explain changes in pricing.

Review 4: April 2027

From this date, foreign-issued card interchange caps and enhanced merchant-statement requirements should make international-card costs easier to identify and compare. Only then will enhanced statement requirements apply. It's unbelievable seven months later. 

How POS Solutions AI reviews payment costs is explained below.

If the information supplied to the retailer meets expectations, POS Solutions AI can compare:

• POS sales data.
• Payment reports.
• Merchant statements.
• Provider pricing information.
• Regulatory milestones.
• Card volumes and transaction values.

The system does not rely on one advertised rate. It compares total costs with the value and number of card transactions.

For example, a retailer may process $62,000 in card sales and pay $1,150 in total card-acceptance costs during a month. The effective cost is approximately 1.85 per cent.

If the previous month’s cost was $1,200 on $60,000 in card sales, the previous effective rate was 2.00 per cent.

This evidence would show that the effective rate has fallen. The review can then investigate why. Possible explanations may include:

• A change in the retailer’s card mix.
• More or fewer foreign-issued cards.
• A change in average transaction value.
• A new monthly or account charge.
• A change in the provider’s pricing.
• Differences between POS sales and settlement totals can also be useful.

As you can appreciate, although a lower effective rate is useful information, it does not by itself prove that the retailer’s pricing has improved.

What the reviews can identify

At each scheduled review, POS Solutions AI may help identify:

• Changes in total card-related costs.
• Changes in the effective payment rate.
• Unusual increases in provider charges.
• Differences between POS sales and settlement
• Changes in average transaction value and card volume.
• Missing or unclear card-category information.
• Possible differences between provider claims and the retailer’s own records.
• The date of the next scheduled update is also included.

Most importantly, the system can compare the retailer’s POS data with the payment provider’s reports and pricing information. If the figures do not match, the system can flag the difference for further investigation.

The chatbot helps to organise and analyse information. It does not replace the retailer’s payment provider, accountant or financial adviser, and it cannot determine the meaning of a contract where the underlying information is incomplete or unclear.

Questions to ask your provider

If the figures do not match, the AI can write a request for a written clarification from the payment provider.

Useful questions include:

• What changed in my pricing from 1 October 2026?
• Which part of my merchant-service fee reflects interchange?
• Did my blended rate change?
• Did any terminal, gateway, platform or account charges change?
• How do you classify domestic debit, domestic credit and foreign-issued cards?
• Are foreign-issued card transactions separately identified?
• Can I receive an enhanced merchant statement?
• Which statement period will first include the enhanced information?
• How have any reductions in interchange fees been reflected in my pricing?
• Are there any new minimum monthly charges or account fees?

Written answers are more useful than a general advertised rate because they give the retailer a record that can be compared with statements and POS data.

Conclusion

The payment reforms will not produce one universal cost for every retailer. Two businesses may process similar sales but have different results.

The POS Solutions AI schedule is intended to provide you a way to review the available information as it is released.

The information will continue to arrive in stages. A retailer’s own records therefore remain the most important starting point for understanding how the changes affect the business.

If you send us your quotes or contracts, we will run them through the AI.

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

A new law mandating cash acceptance for essential businesses, the clock begins on 1 January 2026. The final legislation is much less of the initial government proposals. While most of our clients already accept cash and intend to continue doing so, a growing number are considering a cashless model and need clarity about their rights.

Crucially, retailers must understand that government rules are part of the picture. Many have contractual obligations to their suppliers as well.

The Government

The federal law mandates certain businesses to accept cash payments for goods and services. However, the scope is unexpectedly limited, far less than originally promised, and several exemptions still apply.

Business Category

It targets explicitly retailers of "essential" goods, primarily supermarkets and fuel stations. It does not automatically apply to businesses that sell items such as stationery, books, or pet food.​

Small Business Exemption

The law includes a significant exemption for small businesses, generally defined as those with an annual turnover below $10 million.​

"Part of a Group" Rule

If your business operates as part of a larger group or franchise (e.g., a branded service station), you are likely required to accept cash regardless of your individual turnover.​

Primary Purpose

Your obligation is determined by your primary business category, not the specific item being sold. For instance, if fuel is your primary revenue source, you must accept cash for all items in the store, including non-essentials.

Transaction Limit

The requirement to accept cash only applies to transactions up to $500. For any sale over this amount, you can legally refuse the money.​

While the government may exempt you based on turnover or category, your suppliers likely won't. This brings us to the most overlooked aspect of the new mandate: your commercial contracts.

The Commercial Reality

Even if the law gives you a pass, your most important business partners may require you to handle cash. Before considering a cashless policy for any product, you must check your existing agreements.

Australia Post

Licensed Post Offices (LPOs) operate under a different mandate that defines them as essential service providers. You will be required to accept cash for all postal transactions, such as stamps and bill payments.

Lottery Services

Your lottery retailer agreement requires you to accept cash for ticket sales and pay out smaller prizes in cash. You cannot provide this service without money in the till.

Transport Ticketing

If you are an agent for public transport ticketing, your contract likely designates you as a cash access point for the network, obligating you to accept cash.

Payment & Parcel Services

Third-party bill payment or parcel drop-off services want you to accept cash from customers. Refusing cash could be seen as a breach of your service agreement.

The "Split Counter" Nightmare

Implementing a hybrid policy that accepts cash for some items but not others will create significant operational and customer service issues.

Customer Friction

Refusing cash for a greeting card while accepting it for petrol at the same counter invites customer conflict and erodes goodwill.

Operational Complexity

A mixed policy is difficult for staff to enforce during busy periods, increasing the risk of errors. It also complicates compliance with card surcharging rules, frustrating customers who have cash ready.

Your Action Plan

For those considering a move to a cashless system, a review of your legal and commercial obligations is essential.

Frequently Asked Questions (FAQ)

Q: If my business goes cashless after 1 January 2026, do I need a sign?
A: Yes. Under the Australian Consumer Law (ACCC), you must clearly disclose your payment terms before a transaction to avoid misleading customers. Put a prominent sign at the entrance or point of sale, such as "Card Payments Only."

Q: My insurer requires me to minimise cash holdings. Does the law override this?
A: The law does not void private contracts. You must negotiate with your insurer to find a solution that balances your legal mandate to accept cash with your contractual insurance obligations.

Q: Can I surcharge for cash payments?
A: Surcharging for cash is legally risky; adding a fee to a cash payment could be viewed as misleading pricing under Australian Consumer Law, which assumes prices are listed in cash.

Q: My local bank branch closed. How can I comply if I can't deposit cash?
A: The collapse of our cash infrastructure is a growing problem. The law requires you to accept cash but does not compel banks to remain open. You may need to find an alternative bank or consider paying for business expenses in cash at other local retailers.

Note, I am not a lawyer and do not pretend to be, and I suggest you seek professional advice before proceeding with any proposed action on this...

Written by:

Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

There are some key changes to the privacy laws that will affect us all.

The Small Business Exemption Is Ending

For years, businesses with an annual turnover under $3 million were usually exempt from privacy laws. The exemption is about to end.

Soon, every business will be required to comply with Australian Privacy Laws. What it means is that if you record a person's email for receipts or a phone number for deliveries, it constitutes personal information. It must be protected. Whether the person was brought to you or not is not relevant. It is your business that has collected this information on that person.

Penalties are higher

The government is significantly increasing fines for privacy breaches. It's worth noting that legal costs will add even more to the overall expense.

Direct Lawsuits May Become Possible

Currently, customers must first complain to the Office of the Australian Information Commissioner. The proposed changes would let customers sue businesses directly for privacy breaches. It creates a higher financial risk if you mismanage data.

International Customer Complications

I have previously inquired numerous times without receiving a proper response: if your customer is an overseas citizen, we need to consider the legal regulations of their home country. Many countries also have privacy laws.

Considering these changes, let's take some practical steps to safeguard your retail business and ensure our compliance.

Practical Steps for your business

It is crucial that you:

Review what personal information you collect. Only gather what you actually need. If you do not need it, do not collect it. Then store all your information securely. If possible, use encryption, many backyp systems provide such a service. Delete any information you no longer need. This may be tough, as generally, all Australian businesses are required to retain business records for a minimum of seven years. I have clients who are required to retain certain information for 30 years.

Train your staff on privacy basics. Everyone should understand that customer data is confidential and protected.

Check who has access to your customer information and remove unnecessary people.

Handling Customer Privacy Complaints

If a customers complain about their privacy:

Step 1: Respond Immediately

It's a customer, and you want their goodwill, so send an immediate response.

Send a response, like: "We're sorry for any frustration this has caused. We're taking this matter seriously and are investigating now." This shows professionalism without admitting legal fault. If you admit fault here, your insurance policy may be voided. You may also be seen as admitting to a criminal act.

Step 2: Investigate Thoroughly

Review any records you have. Consult with your staff if relevant. Document everything you find.

Don't delete data immediately, as you might need it to resolve the complaint properly. I had one newsagency where the customer demanded to be present when his information was destroyed.

Keep detailed notes of your investigation process.

Step 3: Seek Expert Advice When Needed

If the complaint feels severe, don't guess. Seek external advice. Contact your industry association, a legal expert, or the OAIC for guidance. Be sure to note that you have documented this and note what instructions they provided.

Step 4: Provide a Clear Resolution

You must respond within 30 days. Do not be late. In your response, offer them a solution and apologise for the obvious distress this has caused your customer. It may involve correcting or deleting information. With me, it would be deleting it.

If customers are still unhappy with your solution, well, you must notify them about their right to file a complaint with the Office of the Australian Information Commissioner.

Preparing Your Business

It's essential to remember that customer data privacy extends beyond simply complying with the law. If customers think their information isn't safe, I doubt they'll stay with you.

This article provides general guidance and should not be considered legal advice. Consult privacy professionals for specific situations.

Written by:

Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.