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
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!
Thanks Slimflow, completely agree. I'm sure we're far from the only MYOB customers looking at this change and wondering why businesses should be expected to absorb these transaction fees from 1 October.
It would be great to hear from other business owners here as well, particularly those who currently use MYOB Online Payments and will be affected by this change.
It is absolutely appalling to see yet another cost being pushed onto small businesses at a time when operating costs are already rising and so many businesses are doing it tough.
Completely agree! The RBA is reducing the maximum card processing fee cap to 0.3% from 1st October and MYOB should absolutely be passing that reduction on.
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.
Hi Amanda,
isnt MYOB a business? And rule prevents from passing on the surcharge ("online payment" transaction fee)? Or its ok for MYOB to pass on still to its customers (us)?
Cant business pass on a "online payment" transaction fee just like MYOB?
If we disable MYOB online payment option - could business then charge over the phone transaction fee?
Everything sounds like wording differently atm.
Hi TamaraDee, I understand how the different scenarios can seem confusing.
I have made an announcement today about the RBA changes, most important right now will be that this links to a webpage we have created with information about the RBA changes and also the option to register for a webinar we will hold soon for our customers.
Check out the post here
The fees from MYOB to you as a customer is not considered surcharging though, this fee is the cost of acceptable for your ability to accept credit cards as a payment type.
When you pass this fee on to the consumer paying the invoice, this is then what is considered surcharging.
So in the scenarios you mentioned, whenever a business processes a credit card (Visa/Mastercard/Amex) as a payment type, whether this is in person, online or over the phone, the cost of processing that payment is for the business, and cannot be passed on (surcharged) to the consumer making the payment.
Where this would apply from MYOB (the business/merchant in this scenario) to you as a customer (person paying an invoice/consumer), would be if we had been passing on the cost of card payments for your monthly subscription fee, and this would no longer be allowed from the 1st OctThank you Mike. Tamara - Consumer, Customer, Invoice-r, Processing.... Bring on Oct 1st!
Can MYOB add functionality for users to set a customisable invoice value limit for Online Payments?
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.
Can MYOB add functionality for users to set a customisable invoice value limit for Online Payments?
I really like this idea. We were planning on completely turning off the online payment function to avoid the fees on large payments, but being able to add a customisable threshold is genius!
so basically we will be turning off online payments from October if we are not able to pass on the credit card surcharge to our client.but MYOB for some reason is still allowed to charge it to us:( how is that fair?
Hi LCrowhurst , I have just published an announcement about the coming RBA changes here
In particular, in this post you will find a link to a webpage we have created with lots of information for customers about the change, and there is also the option to register for a webinar where we'll walk through practical steps you can take to prepare, what to expect in MYOB, answer common questions, and share resources to help you get ready.
If I was to take a run at "why MYOB is still allowed to charge us"
The fees from MYOB to you are not a surcharge. The fee is for businesses (merchants), for the ability to accept credit cards as a payment. Similar to how we charge for payroll as an example, it is a feature that you can use which incurs a fee.
Until these RBA changes occurred, merchants have been able to pass this cost of acceptance on to those who are paying the invoice (surcharging), but businesses will no longer be allowed to surcharge (pass the fees on to the consumer paying the invoice) anymore as a result of the RBA changesThat explanation seems a little contradictory Mike_MYOB. When the expense imposed for running a credit facility is on-charged to the customer, it's called a surcharge. But when MYOB charges us a fee for having a credit facility, it's somehow not a surcharge?
My other issue here is that from 1st October, the RBA is capping such fees to 0.3% and MYOB will benefit from that cap, but will continue to charge a whopping 1.8%+25c and refuses to pass on the savings.
this seems very unfair....we will be disabling the credit card feature from october.
