As the RBA’s consultation process reaches its conclusion and a removal of surcharging looks like it could become a reality, we take a look at the payments landscape in Australia, how we got to where we are, and strategies for QSR leaders if surcharging is removed.
The tap-and-go tipping point
Australia is fast becoming a cashless society. In the Reserve Bank of Australia (RBA)’s most recent triennial Consumer Payments Survey (CPS) in December 2022, figures showed that a massive 87% of transactions were non-cash, and by the time the next survey is done at the end of 2025, we expect that figure to be even higher. In 2023, a report cited that Australians were second only to Norwegians in being the least likely to pay in cash of any countries in the world. That report put our cashless payments at a massive 94% overall.
Given that QSR customers value speed and convenience, including wanting to tap and go, the trend towards cashless in the sector is not surprising. QSR’s have embraced cashless for multiple reasons:
The cost of cashless
However, cashless payments aren’t free. Every tap or swipe carries a merchant fee - whether it’s EFTPOS, Visa or Mastercard, QSR operators are hit with charges from banks, or from payment processors such as Tyro, Square and Adyen. These fees can represent hundreds of thousands of dollars in annual costs. This pressure has led some Australian QSRs to apply a payment surcharge to customers’ bills.
The surcharge backlash
But there’s been a growing backlash against card surcharges. Across all payments, it’s estimated that consumers pay $1.2 billion in surcharges each year: that’s an average of $60 per card user. It’s raising questions about fairness, transparency, and the true cost of doing business in a cashless economy. While surcharging is legally allowed in Australia (unlike European countries, including the UK, which banned surcharging in 2018), many customers are disgruntled with it, which isn’t good for business.
The RBA recommendation
Such has been the profile of this issue for many years that the RBA carried out a Review of Merchant Card Payment Costs and Surcharging. After a public consultation process in October 2024, they released a paper in July 2025, with the initial view that it would be in the public interest to remove surcharging on EFTPOS, Mastercard and Visa cards. Whilst the RBA is still inviting feedback until August 2025, many believe that the recommendation will become policy, based on of the RBA view that removing surcharging would make card payments simpler, more transparent and help to increase competition in the card payments system.
What would the removal of surcharging mean for QSRs – strategies for QSR leadership
1. Smart payments strategy
With no option to pass on high transaction fees, QSRs will need to review merchant agreements and investigate alternative payment providers to ensure they are getting the best rates for transaction volumes. Rather than simply sticking with the banks, for example, they may look at providers like Tyro, Zeller and Adyen, who offer alternative charging models and fees. They will also want to consider least-cost routing, promoting EFTPOS payments over credit, especially when the customer presents a ‘dual’ (EFTPOS and credit) card.
2. Transparent pricing
With no surcharging, QSRs are faced with one of two strategies – absorb the fees or pass them on to customers in the form of higher menu prices. Either way, they should make transparency a friend.
For those who choose not to pass on the fees, they should be clear about this with customers – and should find that the upfront hit on margins is offset by increased custom over time.
For those who do decide to increase prices, transparency can still work in their favour. They should emphasise to customers that the price they pay is the price on the menu – with no unexpected extras when they pay the bill. Prices may be slightly higher, but the but the trade-off may be worth it in terms of trust.
3. Compliance and operational changes
QSR operators recognise that a shift away from surcharges will require configuration changes to their POS system, signage and staff training. Operators with modern, flexible POS like Redcat, will find it easier to ensure compliance. They can leverage POS integration with payment providers to give real-time visibility into transaction fees, so that they can appropriately manage their chosen strategy.
Striking the balance between profit and perception
The move to a cashless society brings undeniable benefits to the QSR sector — but also new complexities. Surcharging has protected margins in the short term, but arguably it has damaged customer relationships in the long run.
If surcharging is banned, QSR leaders should use the change as an opportunity to get ahead of the curve: invest in smarter payments technology, review provider contracts, and rethink how they communicate value to customers.