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Questions  /  What is cost of acceptance?

What is cost of acceptance and how do I calculate mine?

Short answer

Cost of acceptance is your true all-in cost of taking card payments, calculated as total card fees divided by total card turnover for a period. It cuts through advertised headline rates to show what you actually pay as a percentage. It also matters where surcharging is still permitted, such as on PayPal: any surcharge should not exceed your cost of acceptance for that card type. American Express sits outside the RBA ban, but providers including Tyro and Eway have said they will remove Amex surcharging on 1 October 2026, so confirm the Amex position with your provider.

Last updated: 2 July 2026

What the number means

Cost of acceptance is the percentage your business genuinely pays to accept cards, once every fee is accounted for. A provider might advertise one rate, but assorted scheme fees, transaction-type loadings and fixed charges can push your real cost above or below it. Cost of acceptance strips that away and gives you a single, honest figure to compare against benchmarks and across providers.

How to calculate yours

The formula is straightforward: total card fees divided by total card turnover for a defined period, expressed as a percentage. Pull a full statement (a month or, better, a quarter), add up every card-related fee charged, and divide by the value of card sales over the same window. Use a representative period rather than an unusually quiet or busy one. For context, indicative in-person flat rates average around 1.37% and online around 1.78%, with small-business effective costs commonly landing between roughly 1.1% and 2.5% — these are indicative only.

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Why it governs your surcharges

Cost of acceptance is not just a benchmarking tool. It is also the ceiling for any surcharge that remains permitted: a surcharge should never exceed your cost of acceptance for that card type. After 1 October 2026, surcharging on eftpos, Mastercard and Visa is restricted. PayPal sits outside the RBA ban, so a compliant PayPal surcharge within your cost of acceptance can continue. American Express also sits outside the RBA ban, but providers including Tyro and Eway have said they will remove Amex surcharging on 1 October 2026, and Eway reports Amex has announced its own change from that date, so confirm the Amex position with your provider. This is general information, not financial or legal advice.

Sources: RBA Conclusions Paper media release (mr-26-10) · ACCC card surcharges guidance · Eway: RBA reform response · Tyro: surcharge ban confirmed.

Information current as at 2 July 2026.

This page is general information only and is not legal or financial advice. The RBA sets the final rules and timing, so confirm current details at rba.gov.au.
Common questions
Related questions
How do I calculate cost of acceptance?
Divide total card fees by total card turnover for a period, then express it as a percentage. Use a representative full statement period for accuracy.
Why does cost of acceptance matter for surcharging?
Any surcharge that remains permitted should not exceed your cost of acceptance for that card type. PayPal sits outside the RBA ban, so a compliant PayPal surcharge can continue on that basis. American Express also sits outside the RBA ban, but providers including Tyro and Eway have said they will remove Amex surcharging on 1 October 2026, so confirm the Amex position with your provider.
Is cost of acceptance the same as my advertised rate?
Not necessarily. Extra scheme fees and fixed charges mean your real cost of acceptance can differ from the headline rate you were quoted.
What period should I use to calculate it?
A representative full statement period, where a quarter is often more reliable than a single month, that isn’t unusually quiet or busy.
What’s a typical cost of acceptance?
Indicative figures put in-person flat rates around 1.37% and online around 1.78%, with small-business effective costs commonly between roughly 1.1% and 2.5%.
Keep reading
What is a merchant service fee? →Can I still surcharge Amex after October 2026? →Can I still surcharge PayPal after the ban? →Why are my merchant fees so high? →What is the average merchant fee in Australia? →All questions →
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