Card Surcharges Are Ending Soon: Who Absorbs the 3.5% Hit to Print Margins?

The shift comes down to the Reserve Bank of Australia (RBA), the regulator overseeing payments, banning card surcharges starting October 1

That means the 1.1% to 3.5% processing fees once paid by customers at checkout will now fall straight on merchants

The Visual Media Association (VMA) is rolling out special guidelines next week to help members deal with the fallout

I talked about this with fellow printers recently, and everyone's immediate reaction was: who is going to pay for this?

Even American Express confirmed it will voluntarily scrap surcharges on the same day

Bringing hidden payment costs out into the open is hands down the most direct blow to quote sheets this year

Hikes of 3.5% will scare off price-sensitive clients, but swallowing the cost outright wipes out already razor-thin print margins

VMA executive Charles Watson pointed out a key detail: while the RBA is banning surcharges, it is also lowering the cap on interchange fees, the biggest slice of card transaction costs

Interchange fees, currently sitting around 0.80%, are expected to drop to roughly 0.30%

That gives printers a strong bargaining chip to push existing payment providers for better merchant rates

Looking back at the three-tier quoting framework we often discuss, platemaking, paper, and finishing each have their own cost baselines. Payment processing fees are now another line item you have to calculate down to the cent

If your payment provider does not drop their rates in step with the new rules, it is time to switch

Instead of haggling with clients over a few percentage points on an estimate, raise the perceived value of the job to dilute payment fees

Lately, whenever brands come to MINDS for consultations, I advise them not to nickel-and-dime over standard marketing collateral. Put that budget toward tactile finishing that customers can actually feel

Once the tactile quality is there, that 3.5% cost gap easily gets absorbed into gross margins. Here is how shops typically handle it on the floor:

・High-ticket packaging and business cards: Layer foil stamping, embossing, and spot UV as quality differentiators. These high-margin items naturally absorb payment fee swings

・Routine consumable marketing collateral: Shift to modular designs when costs fluctuate. For example, swap out only price sections on restaurant menus, redirecting saved reprint budgets to cover transaction fees

・Long-term repeat clients: Be upfront about what the new rules mean, and guide them toward direct bank transfers or non-card payment methods to keep pricing intact

The reality on the print shop floor is straightforward: when the finished piece carries real weight, extra processing overhead blends right into brand equity

・The ban on card surcharges takes effect October 1, leaving printers to absorb payment costs of up to 3.5%

・Use the lower 0.30% interchange fee cap as an opportunity to renegotiate merchant contracts with payment providers

・Stop competing on price with low-margin print jobs, and lift overall project value through specialty finishing like foil stamping and embossing

On paper, scrapping surcharges is just a financial regulation, but in practice, it forces print shops to segment clients and upgrade quote models. Instead of risking customer blowback with blunt price hikes, look at the bigger picture. Audit your product lines and direct focus toward commercial jobs that command high-margin finishing. That is the most reliable way to ride out ongoing cost shifts

・Print margins may be hit by end of card surcharges