The Tyro Blog

8 May 2015 - 3 min read


RBA Caps Card Fees – Effective 1st July 2017

The Reserve Bank of Australia (RBA) has reduced the cost of credit card acceptance fees in the more expensive premium, business and commercial card category. Retail, hospitality and healthcare businesses can rejoice!

Though there are slight downsides with Visa and Mastercard® debit transaction fees increasing, it’s a big win for Australian SME owners and businesses as a whole.

Why is all of this important to you? Because you incur costs when you accept payments by card. Cards that provide significant rewards to their customers are typically more expensive. Fees come in at 3 percent on Amex transactions, while Mastercard and Visa cost you more than 2 percent. But I’m sure you already knew that.

If you didn’t, it’s time to get a clear understanding of how much your eftpos cuts into your revenue. You can often gain access to your historical card mix by looking at payment types on your Point of Sale reports.

Understanding your customers’ card mix means that you can work backwards and figure out how much accepting card payments is costing your business. This information will in turn help you make well-informed decisions when it comes to your eftpos partner.

Tyro Passes Savings from RBA Caps on to You

Tyro is passing on our customer’s savings by providing businesses with a reduction in acceptance fees where applicable. The amount you save differs according to your customers’ card mix and will be applied automatically. The more premium cards you see being used for payments in the business, the more you stand to benefit. We’ve crunched the numbers and some of our customers are looking at 5 – 10% savings a year. Exciting times.

Private education, seems to be the clear winner in this arms race, with aged and health care coming in close seconds.

Why are we kicking back savings to our customers? Because we are deeply invested in the small and medium enterprises that keep the lights on in Australia.

There are 16,752,280 Credit Card Accounts in Australia


That was the figure in April 2017. This climbing graph is a reflection in the way consumer spending behaviour has been trending since 2013. And that’s just the number of accounts being created. According to a survey conducted by Finder, 70.19% of Australians adults owned a credit card in 2016.

Australian consumers have taken to card payments like fish to water. This, combined with the lack of refinement to regulation has left small and medium business owners struggling to keep up with card acceptance fees.


These developments in the cards markets have called for RBA’s review of the regulatory framework to promote competition and efficiency in the payments system.

They will be assessing this framework every quarter, not every three years moving forward. This is so that the framework can be consistently optimised to better support Australia’s changing payments state.

Related: See how Australian businesses have benefited from going cashless.

How Many of Your Customers Use Credit Cards?

Finder has answers to that too, providing a detailed overview that shows a demographic and usage breakdown.


Taking Payments in the 20th Century

Credit and debit card usage is a trend here to stay. Take the time to work out how much your business is paying in card fees so that you understand how much your eftpos is actually costing you.

Tyro is a financial technology businesses built to support small and medium businesses.

Learn more about Tyro’s transparent pricing and low fees.

Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

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