Handling credit card surcharges with the Tower Systems POS software
Note: In Australia from October 1, 2026, applying a surcharge to recover costs is not permitted.
Retailers using our POS software have several options for applying surcharges quickly and transparently. This passes on the real cost to the business of these payment methods.
The best approach depends on your banking relationship and the payments platform you use. With Tower Systems you can choose the payments platform that best suits your business. We do not force you down a specific payments gateway path. Nor do we charge a transaction-related fee to use our software.
Understanding the options
When applying credit card surcharges using Tower Systems, you have two methods.
The first is a surcharge set in the POS software itself. You set a fixed amount or percentage for all credit card transactions. This suits simple, flat-rate surcharging.
The second is a surcharge set on the EFTPOS terminal. The terminal applies different surcharges for various card types, such as Amex, Visa and Mastercard. This gives you more flexibility and precision.
Should you surcharge at all?
Some considerations. You must comply with Australian Consumer Law, which includes displaying the surcharge clearly and keeping it to what the payment actually costs you. Think about your customers and whether they are likely to be sensitive to surcharges. And look at your competitors. If they do not surcharge, weigh the benefit against the risk of losing customers.
Our POS software talks to the payments processor once the card is presented. A surcharge is calculated instantly and details are provided to the shopper. We do this the way the ACCC requires.
Certain rules apply when a business applies a surcharge to particular cards.
- The surcharge must not be more than what it costs the business to use that payment type.
- The surcharge can only include costs for accepting that particular payment. For example, if a business pays gateway fees for processing credit card transactions only, it cannot include that cost in its debit card transactions.
This approach meets the legal obligations of retailers in Australia. It also makes it easier to cover the cost of card payment, which can be considerable depending on the card presented. This matters more than ever as card use continues to grow and cash use declines.
Some extra tips from years of serving small business retail.
Keep it simple. A range of surcharges based on different cards may seem transparent. But since most shoppers do not know the specific card program they use, varied pricing may only confuse.
Be upfront. Communicate your surcharge policy clearly, in-store and online.
Offer alternatives. A discount for cash, or another incentive, can encourage a payment method that costs your business less.
Review your prices. Make sure they remain competitive once card fees are factored in.
Our POS software makes it easy for small business retailers to apply a surcharge and manage the collection and record keeping, transparently for the shopper. We take care of this for our customers so their job is easier and the records are right.
