- 9 in 10 small business owners believe banks are profiteering on card payment processing fees
- Fees forcing many to surcharge customers, causing annoyance
- AMP Bank GO standing behind small business with ‘no profit’ pledge on card payments until 2027, low fee promise and ongoing transparency
9 in 10 small businesses owners believe their banks are profiting too much on card payment processing fees, while more than 2 in 5 don’t understand what the fees are for – according to new research from AMP Bank GO.
Card payment processing fees – also known as merchant fees – are charged to small businesses each time a customer pays by card. To stay afloat, many small businesses such as cafes, hairdressers, and the local corner store, are forced to absorb this expense, lift prices, or surcharge their customers.
This need to surcharge is causing tension between businesses and their customers, with close to half of small businesses indicating their customers are annoyed at being surcharged. Small businesses can’t solve this customer frustration without impacting their own viability.
The RBA estimates that card surcharges cost consumers around $1.2 billion each year1, and is currently undertaking a review of card payment costs and surcharging.
Renee Williams, Florist owner, Albury, is calling out banks for what she believes is profit gauging sitting behind a smokescreen of deliberately confusing fees.
“I’m running my business on razor thin margins – meanwhile, we have no idea how much banks are making from fees – we just know they’re posting billions in annual profits. They are profiteering from every tap we process, meanwhile we don't understand half of what we’re being charged and we're scrambling to keep the lights on. We're the ones pouring the coffees, arranging the flowers, sponsoring the local school raffles, and keeping main streets alive. We just want a fair go – not to be fleeced by a system that profits off our survival.”
Gerard Barrios, Café owner, Sydney, absorbs $14,000 worth of card payment processingfees per year.
“As a small cafe, we’ve chosen to absorb the cost of card payments rather than pass on to customers, which sounds noble, until you realise we’re being ripped off by a system designed to confuse us. I don't even understand why I’m the one being charged.
“I’ve watched countless cafes and restaurants close in recent years, not because they weren't good businesses, but because they couldn't absorb an unsustainable burden that shouldn't exist in the first place. We just want transparency and fairness, not a one-sided game.”
John Arnott, Director AMP Bank GO said that it’s time for banks to givesmall businesses and their customers a fair go on card payment processing fees.
“Our small businesses – the backbone of local communities and Australia’s economy – deserve a card payment system that is transparent and fairly priced.
“AMP Bank GO is backing small businesses with three firm commitments, a no profit pledge on card payment processing fees until 2027, a commitment to lead on price, and to provide a plain-English breakdown on fees so business owners understand exactly what they’re paying for.”
AMP Bank GO’s three commitments to small businesses:
1. Low price promise on card payment processing fees
Through Live Payments, AMP Bank GO will provide low in-person card payment processing fees across Visa, Mastercard and EFTPOS, when the settlement account is with AMP Bank GO, to help drive competition and keep operating costs down.
These fees will be reviewed quarterly against the publicly available card payment processing fees of the Big Four banks and leading acquirers Tyro, Zeller, and Square. Reductions will be promptly passed through to both new and existing customers to ensure continued competitiveness and transparency.
2. ‘No profit’ pledge on card payment processingfees
AMP Bank GO is committed to keeping its card payment processing fees as low as possible, and to back this promise, will not take any profits on card payment fees until 2027.
As part of its ‘no profit’ pledge, AMP Bank GO will return any profits on card payment processing fees to its small business customers through a grant program in 2026 and 2027. Details about the pledge and grants program can be found on AMP Bank GO’s website.
3. Fee transparency
AMP Bank GO has published a plain-English breakdown of how card payment processing fees work to help small business owners understand exactly what they pay for and is committed to providing ongoing transparency for customers.
Learn more about AMP Bank GO’s ‘fair go’ commitments - visit amp.com.au/fair-go.
Why the system is broken – and why it matters:
- Banning surcharges without fixing merchant fees just hides the cost. It does nothing to reduce the actual feespaid by small businesses.
- It is likely that any increased costs of card payments to small businesses due to a surcharge ban will be worn by small businesses themselves or passed on to customers through increased pricing.
- Opaque pricing keeps fee margins out of sight and too many small businesses are captive to take-it-or-leave-it rates.
- Small businesses such as hairdressers, café owners and the local corner store, can end up subsidising the big banks’ premium rewards programs.
About the research
AMP Bank GO commissioned research to understand Australia-based small business owners’ attitudes around fairness in banking – a survey of 1,021 sole traders and small business owners (up to 19 employees) was conducted by Dynata in October 2025.
This information is provided by AMP Bank Limited. Read our Financial Services Guide available at amp.com.au/fsg for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relationto products and services provided to you.
AMP Bank is a member of the Australian Banking Association (ABA) and is committed to the standards in the Banking Code of Practice.
Information is correct as at 13/11/2025 and is subject to change without notice. Terms and conditions apply.
[1] Reserve Bank of Australia, Review of Merchant Card Payment costs and Surcharges – Consultation Paper, July 2025, https://www.rba.gov.au/payments-and-infrastructure/review-of-retail-payments-regulation/2025-07/pdf/review-of-merchant-card-payment-costs-and-surcharging.pdf?v=2025-07-14