Card Surcharges
As of 1st of October will MYOB be charging us the 1.8% Credit Card surcharge + the .25c transaction fee or will it be removed as per the RBA's recommendation?
Forum Discussion
66 Replies
I understand MYOB's 1.8% + 25c covers more than just interchange fees, but I think we're only hearing half the story here.
From 1 October the RBA is also reducing interchange fees, specifically to reduce card acceptance costs for merchants. They've estimated these changes will save merchants around $1.2 billion per year.
MYOB is very clear that we can no longer pass the 1.8% fee onto our customers, but there's been very little said about the reduction in MYOB's own underlying card processing costs.
So the question is pretty simple – how much of that saving will MYOB be passing onto us through a reduction in the 1.8% + 25c fee?
Telling businesses to adjust our pricing to absorb the fee, without answering that side of the equation, isn't really good enough.
Agree 100%. We will be cancelling this payment facility. Totally unacceptable MYOB isn't being transparent about what they will then charge it's current customers for this payment service. It's not like we don't pay enough for the actual software monthly.......
agree....we will be cancelling too from October....as you mentioned we pay enough in fees nd when our clients do pay us with the Credit card facility we have to wait days to receive the money and i cant edit the online payment description.....
Yes will also be cancelling my credit card facility with MYOB. I dont understand how if credit card fees are being banned we as a customer are still getting charged but just calling it something else? I'm considering no longer offering a credit card payment option or raising prices to cover costs and then offering a discount for direct payment or cash.
Hi LeeSupplies and all on this thread
We have just posted an updated for all in the forum here. In particular, this links out to a landing page we have created on this change, and you have the option to register for an upcoming webinar that we will be running for our customers as well
Please take a look here when you have the timeHi Mike,
I am stuck with the wording...For businesses, this means card fees can no longer be passed on to customers. Are we not your customers? Isnt MYOB a business? If you can clarify as the link doesn't. or I am missing it.
MYOB just announced in their webinar that they are reducing the payment fee a whopping 0.1% from 1.8% + 25c to 1.7% +25c, and now we have to bare the costs.
I'll be disabling card payments immediately on 1st Oct.
Wow, that’s so generous of them. I’ll be turning mine off too. I will still get my invoices paid by bank transfer so no problem for me. Watch this space as MYOB will raise their subscription fees next to cover their loss from all the surcharges they no longer get.
This is an absolute joke to say the least.
Just a heads up, from my understanding you may want to disable Online Payments now rather than waiting until 1 October.
The change appears to apply to payments made from 1 October, rather than invoices issued from that date. So if you issue an invoice now with Online Payments enabled and the customer doesn't pay it until after 1 October, you could end up having to absorb the 1.7% + 25c transaction fee.
I've decided to switch mine off now for exactly that reason. I'm not prepared to risk having outstanding invoices paid by card after 1 October and being forced to absorb the fee.
I'll also be exploring alternative payment and accounting options going forward. If MYOB's solution is for small businesses to simply absorb these costs, then I think it's only reasonable for us as customers to reconsider whether MYOB continues to offer the best value for our businesses.
MYOB confirmed in the webinar that we don't need to do anything. If an invoice is issued on 29th September for example and you are passing on the surcharge to your customer, and they pay it on or after the 1st, the surcharge will automatically be removed from the invoice when they go to pay it, and will simply be passed on to you.
I'm hoping to clarify what will happen if I send out an invoice on 29th Sept and then on 1st Oct I disable online payments, will the customer still be able to pay it via card, or will they get a message stating that this payment method is no longer available. If I can find out, I'll post back.
Hi everyone, using this thread as many of you may benefit from the idea I have posted on the ideas exchange for Online Invoice Payments to have a customisable limit:
Online Payments - Customisable Invoice Value Limit | MYOB Community
If this interests you, please vote to gain traction with MYOB.For our business, Online Payments are worthwhile for smaller invoices, where the convenience for customers and reduced manual follow-up justify the transaction fee. However, for invoices in the thousands of dollars, the percentage-based fee becomes significant and the trade-off is less clear.
It would be useful to set a threshold where Online Payments are automatically disabled above a nominated invoice value, while retaining the option to enable them manually when needed.
We watched the pre-recorded live webinar yesterday and was not surprised from their scripted response. Their reduction from 1.8% to 1.7% answered my question of 'do I turn off the credit card payment option'?. Yes, which I did today.
We are a micro business and offer credit card payments as an option for clients, our main issue is that most NSW state government departments pay by credit card, this will now have to be done over the phone via our eftpos terminal as the bank's fees are lower the MYOB.
In case anyone is interested in bank fees, my conversation with Westpac this morning regarding fees are as follows:
Terminal fee - $24.75 (monthly)
Terminal transactions - reducing by 0.41%
Eftpos Air - reducing by 0.15% (smart phone option)
Online Pay - reducing by 0.15% (send a link to the client, they can pay by credit card)
Obviously these fees are not going away and as a business we will have to make adjustments, whether that is absorbing the fees or increasing prices.
*Post edited to show the change in price rather than the pricing itselfWOW, you edited my post to show the % in reduction, not the actual rate that I posted. Is it because the bank rates are much lower than MYOB's?
Where is your transparency?
I have to agree with flubber here. This is a really poor look from MYOB and raises some serious questions about transparency in this discussion.
Those actual rates were directly relevant to the conversation. We have been discussing MYOB's 1.7% + 25c fee and whether businesses have commercially viable alternatives. Another customer then provided actual rates they had obtained from their bank, allowing MYOB customers to make a direct comparison, only for an MYOB Community Manager to edit their post and remove those rates, replacing them with percentage reductions instead.
Given the amount of frustration already being expressed by MYOB customers about these changes, I would have thought greater transparency and open discussion would be the appropriate response, not less.
Hey Slimflow
MYOB will be updating our invoicing feature to help keep your payment experience in line with the new guidelines.
The 1.8% + 25c is MYOB's online payment transaction fee, it's what we charge to process payments made online, and that will still be in effect. What is changing from 1 October 2026, is the ability for a business to pass that fee on to a customer as a surcharge.
MYOB will share more product specific guidance through August and September so you know what to expect in your product. You can find updates here.
This is frankly outrageous, and I struggle to understand how this can possibly be considered a fair outcome for small businesses.
MYOB has confirmed above that the 1.8% + 25c fee will remain because, in MYOB's words, it is an "online payment transaction fee" charged to us for processing the payment.
If MYOB is permitted to charge us, its customer, a 1.8% + 25c transaction fee for processing a payment, why should we not be permitted to recover that exact transaction cost from our own customer when their choice of payment method is what directly causes us to incur it?
Calling MYOB's charge a "transaction fee" rather than a "surcharge" does not make the cost disappear. It is still a direct and identifiable cost incurred by the business as a result of that particular transaction.
The outcome therefore seems completely contradictory. MYOB can charge its customer a transaction fee to cover the cost of providing a payment service, but its business customers are expected to absorb that same fee and are prohibited from passing the direct cost of the transaction on to their customers.
For businesses processing large invoices, 1.8% is substantial. For example, a $10,000 payment would cost the business $180 + 25c simply because the customer elects to pay through MYOB Online Payments. Why should that cost automatically become the business owner's responsibility?
If businesses are prohibited from recovering card processing costs from the customers who generate them, then payment providers should not be permitted to continue imposing percentage-based transaction fees on businesses under effectively the same rationale.
At the very least, I would like MYOB to explain the logic behind this distinction and what it intends to do about the 1.8% + 25c fee from 1 October. Simply telling small businesses that the fee remains but we are no longer allowed to recover it from the customer is an extraordinarily poor outcome for MYOB's business customers.
Well said Henry! Couldn't have said it any better myself. I will be cancelling my online payment function from the 1st of October. Our customers are the only ones inconvenienced by this ludicrous move from MYOB as they will not be able to pay by Credit Card & will have to pay via bank transfer! I will also be checking out XERO to see if they can offer us a better service!
This is not the answer I was looking for. The "online transaction fee" you will be continuing to charge us is simply a credit card surcharge the government is trying to abolish. I will be cancelling my online payment function from 1st October as we refuse to pay MYOB any more fees!!
I understand the guidelines mean that we can no longer pass on the fee/surcharge post October 1st. But shouldn't the 1.8% be reduced given that MYOB's wholesale interchange fees will going down? If MYOB keep it at 1.8% we will definitely be turning this feature off. Please tell us now as invoices being sent out now may well be getting paid in October.
Hi Louisa33 , the fees associated with online payments (1.8%+25c) are being reviewed as part of the changes, but I do not know if/what the change will be.
I would recommend registering for the webinar as we might know more by then and be sharing during the webinar.
You can find the webinar registration details here to save your spot.
I agree that MYOB are only addressing one side of the story regarding the government changes. I also wanted to check if other companies are already having to pay the surcharges even though I have clicked the option of "customer to pay surcharge" and it is not yet the 1st of October. I submitted a help request almost a month ago but no reply.
Hi geoeng , can you please clarify your question a bit further? I would like to answer or address as much as I can.
Because this change doesn't take effect until the 1st October, the option is still in the software for you to surcharge the fee to the person paying your invoice.
Let me know how I can help, thanksHi there,
For online payments, I currently only allow for credit card payments with the surcharge paid by the customer. I did allow for BPAY payments but then I realised that I pay the surcharge so I disabled that option.
I just checked a recent payment made by credit card and my accounts assistant told me that we that we paid the surcharge. But I have now checked and that was not the case. So all good until 1 October I guess. But I agree with others, I will be disabling online payments after the 1st October, especially if MYOB are still charging thier customers "transaction fees". It is hard enough for small businesses but of course the banks and large companies are OK with thier transaction fees.
I looked into getting my own credic card machine for customers to pay me directly. CBA, my bank are charging 0.99% transaction fees from 1st Oct. I am also checking to see if I can obtain my own BPAY link to add to my credit cards. It can be done but they dont advertise the fee. surely it would be cheaper than 0.99% because there is no machine involved. I hope that give people some ideas.
Hi, Oct 1st, MYOB will be taking out fees and depositing remaining amount to our account.
Invoice will show as short paid.Please advise how to adjust within invoice to show fees charged by MYOB.
Hi TamaraDee,
I get that it’s a bit confusing when the amount paid into your bank account is less than the invoice total, making it look like the invoice has been short-paid. From 1 October 2026, MYOB will deduct the payment fee from the amount settled to your account rather than adding it to your customer’s payment. This means the customer’s payment will still be recorded against the invoice for the full invoice amount, so you shouldn’t adjust the invoice itself or record it as a short payment. You can read more about the fee changes here: Fees and charges for online payments.
Regards,
Sai
Thank you, We have decided we will go back to processing on the eftpos machine either in person or over phone as it is only 1% charges from bank (no rental) rather than the 1.8% + 25c from MYOB on secure pay. they bill end of month so one entry.
TamaraDee Not sure if this helps, but we will be receipting the payment in full to the customer and then processing a Spend Money transaction for the merchant fees that have been deducted. This will ensure that both your debtors and your bank reconcile.
Thank you, Thats great information. A few extra steps for the office staff, like the payday super. For now, We have decided we will go back to processing on the eftpos machine we already have 1% charges from bank (no rental) rather than the 1.8% + 25c from MYOB on secure pay.
Hi everyone!
We understand how this could be confusing. The short version is that the change affects how businesses can pass on card payment costs; it doesn't mean the cost of providing payment services disappears.
The RBA has announced that, from 1 October 2026, businesses will no longer be able to apply surcharges to domestic payments made via eftpos, Visa or Mastercard. American Express has also announced it will remove surcharging from the same date. Payment providers like MYOB now need to implement these changes across the payments ecosystem.
The fees associated with online payments help support payment processing, as well as the technology, security and other services that support the payment experience. The change doesn't remove those costs; rather, it changes how businesses can recover them from customers.
The RBA's reforms are also intended to reduce some of the underlying costs associated with accepting certain card payments. We're reviewing what that means for our pricing and will share more once our approach is confirmed.
If you currently surcharge, it may be worth reviewing how payment costs are managed within your broader pricing and operating model.
We'll share more practical guidance and scenarios in the coming weeks. You can also register for our upcoming webinar here.
Please note: this is general information only, not legal or financial advice.
Thanks Amanda, but I don't think this addresses the fundamental concern being raised here.
MYOB is telling businesses that we can no longer directly recover the cost of a customer's chosen payment method from that customer, while MYOB itself continues to charge businesses a transaction fee for providing that payment service.
Suggesting that businesses instead recover these costs through our "broader pricing and operating model" effectively means spreading the cost across all of our customers, including those who pay by bank transfer and do not generate an MYOB Online Payments fee in the first place. How is that a fairer or more transparent outcome?
If MYOB's costs of providing Online Payments remain legitimate costs that MYOB is entitled to recover from its customers, then surely you can understand why small businesses are questioning why the direct cost we incur from that same transaction should simply become ours to absorb.
You mentioned that MYOB is currently reviewing what these reforms mean for its pricing. Can you please clarify whether this means the current 1.8% + 25c Online Payments transaction fee is under review and may be reduced from 1 October?
I think that is the question many MYOB customers would like a clear answer to before deciding whether continuing to offer MYOB Online Payments remains commercially viable.
Hi Amanda,
I don't find this confusing at all.
MYOB have told us we can't pass these charges onto our customers, however, MYOB can still pass these charges onto their customers......that will be us! It's pretty black & white to me.
Your monthly subscription fees increase & change on a regular basis. "It may be worth reviewing how payment costs are managed within your broader pricing & operating model!"
As of 1st October we will no longer be using your online payments facility & go back to using square where we can incorporate their fee into our customers invoice.
