Preparing for card payment changes

The Reserve Bank of Australia has released its Conclusions Paper on merchant card payment costs and surcharging. The reforms will reshape how medical practices accept and recover payment costs, and they will require careful planning before they take effect on 1 October 2026.

For general practices, specialist rooms, day surgeries and allied health providers, these changes will influence billing processes, gap payments, EFTPOS arrangements and the way practices manage rising operating costs.

Surcharging will be phased out

Many practices have introduced small surcharges to offset the rising cost of accepting card payments. The RBA has concluded that surcharging no longer serves its intended purpose and will remove it entirely from October 2026.

This means practices will need to absorb these costs or adjust their fee structures. For practices with high patient throughput or a large proportion of card payments, this will have a noticeable impact on margins. Practices that rely on surcharging for private billing or gap payments will need to plan early.

Merchant fees should reduce, but not evenly across providers

The RBA will lower maximum interchange fees for debit and consumer credit cards and introduce a cap on foreign card interchange. This should reduce costs for many practices, particularly those with a high volume of debit card transactions.

However, the actual savings will depend on the practice’s payment provider, terminal type, transaction mix and existing contract. Some practices may see meaningful reductions. Others may see only marginal change. The reforms will make it easier to compare providers, but practices will still need to negotiate competitive terms.

Greater transparency for practice owners and managers

Payment providers will be required to publish their fees and present statements in a standardised format. This will help practice managers understand what they are being charged and identify opportunities to reduce costs.

For multi‑site practices, group practices or those with multiple terminals across consulting rooms, this will be an opportunity to simplify arrangements and remove unnecessary complexity.

What this means for medical practices

These reforms will affect practices differently depending on their billing model, patient mix and payment systems.

• Practices with high private billing or large gap payments will need to review pricing and communication strategies. 
• Practices with older merchant service agreements may be paying above‑market rates and should review their contracts.
• Practices with multiple terminals or mixed providers may benefit from consolidation. 
• Practices with a high proportion of credit card payments may see less benefit from the interchange reductions.

How Hood Sweeney can support your practice

Hood Sweeney works with medical practices across South Australia and understands the operational pressures that come with rising costs, workforce shortages and increasing administrative demands. We can help your practice prepare for these changes in several ways.

Reviewing merchant service fees

We can analyse your current merchant arrangements, benchmark your fees against the new standards and help you negotiate improved terms. Many practices are unaware of the true cost of their payment mix. A structured review can uncover savings that support practice profitability.

Modelling the removal of surcharging

Removing surcharges will require adjustments to billing processes and fee structures. We can model the financial impact on your practice and help you plan a smooth transition for both your team and your patients.

Strengthening financial systems

The new transparency requirements will only be useful if your internal systems capture the right information. We can help you integrate merchant data into your accounting systems and improve reporting so you have clear visibility over payment costs each month.

Supporting practice managers

We work closely with practice managers to ensure they have the tools, reporting and advice they need to manage these changes confidently.

Preparing ahead of time

Although the changes do not take effect until October 2026, practices that start preparing now will be in a stronger position. Reviewing merchant arrangements, updating billing processes and planning patient communication will take time.

If you would like support to understand how these reforms will affect your practice, our Accounting and Business Advisory team is ready to assist.

• Marcus Staker is Director, Accounting & Business Advisory, Hood Sweeney and Head of the Health Team.