Interchange fees sit at the heart of Australia’s card payment ecosystem. Every time a customer taps, inserts, or pays online with a card, the issuing bank charges an interchange fee to the acquiring bank. These fees help fund fraud prevention, rewards programs, and card infrastructure, but they also influence the cost of accepting payments for businesses.

For years, interchange fees have been a point of debate, with regulators pushing for lower costs and greater transparency. Now, with new caps coming into effect in October, the RBA is reshaping how much banks can charge, and how much businesses ultimately pay.

What exactly are interchange fees?

Interchange fees are wholesale fees set by card schemes (Visa, Mastercard, eftpos) and paid between banks. They vary based on card type, transaction method, and industry category. Premium and rewards cards typically attract higher interchange, while standard debit cards sit at the lower end.

For businesses, interchange fees can flow through into merchant service fees, meaning any change to interchange directly affects the cost of card acceptance.

What’s changing in October?

From October, the RBA is introducing new caps designed to reduce the cost of card payments across the economy. The key changes include:

• Lower maximum interchange rates for many card types
• Tighter average interchange caps across card schemes
• Reduced fees on common debit and credit transactions
• A push toward simpler, more transparent pricing models

These changes aim to reduce costs for merchants and improve competition between payment providers.

How will the new caps impact businesses and the payments industry?

The impact will vary depending on the types of cards your customers use and the pricing model your payment provider uses.

• Businesses with high volumes of standard debit transactions may see lower overall costs.
• Merchants who frequently accept premium or rewards cards may see less dramatic savings, as these categories may often remain higher even after caps.
• Payment providers will need to adjust their pricing models, which may lead to more transparent, pass‑through style pricing.
• The industry may see a shift toward interchange‑based pricing models as providers align with the new regulatory environment.

Overall, the reforms are designed to reduce cost pressures, but the benefits depend on how your payment provider structures your fees.

What’s not included in the interchange fee cap reductions?

Not all payment types fall under the new caps. Key exclusions include:

• American Express (proprietary cards)
• Buy Now Pay Later products
• Mobile wallets (Apple Pay, Google Pay) where fees are set by the wallet provider
• Certain commercial and corporate card categories
• Some online and cross‑border payment types

These exclusions mean businesses may still see higher costs for certain payment methods, even after the October changes.

What businesses can do to prepare

With the October changes approaching, now is the time for businesses to take action:

• Review your current pricing model - Understand how your provider charges you today.
• Analyse your transaction mix - Identify which card types your customers use most.
• Check your merchant statements - Look for interchange‑heavy categories.
• Ask your provider how the new caps will affect you - Not all pricing models pass savings through.
• Consider switching to a more transparent model - Especially if you’re on blended or fixed‑rate pricing.

Interchange++ Pricing with PayNuts

To help businesses take full advantage of the new caps, PayNuts offers Interchange++ pricing - a model where you pay:

• The actual interchange fee
• A scheme fee
• A small, fixed PayNuts margin

This structure gives merchants complete transparency and ensures that when interchange goes down, your costs go down too. It’s ideal for businesses wanting clarity, fairness, and the ability to benefit directly from regulatory changes.

Whether you’re a new merchant or already processing with PayNuts, Interchange++ is available today and easy to switch to.

Final thoughts

The new interchange caps being introduced in October 2026 mark a significant shift for Australia’s payments landscape. While the changes are designed to reduce costs, the real impact depends on your pricing model and your payment partner. Businesses that prepare early, and choose a provider committed to transparency, will be best positioned to benefit.

Reach out to us directly for any support around the up-coming October updates or to enquire about Interchange++ pricing.