If you’re a small business owner and you need an easy way to calculate credit card processing fees, QuickBooks can help. Our credit card fee calculator is reliable and simple to use – freeing you up to focus on other things.
Simply plug the details into our payment fees calculator to get started:
Credit card payment processing fees (also referred to as ‘CC processing fees’) are the costs charged to businesses for handling credit card transactions. In Australia, there are a number of major companies that charge credit card processing fees to businesses. These include:
Online payments made using Stripe also incur fees. Stripe processing fees apply to payments made by credit cards, digital wallets (such as Apple Pay), and bank transfers.
Processing fees are charged to businesses to cover the costs of facilitating card transactions. These fees cover all the services that payment processors provide – such as payment authorisation, card detail verification, fund transfers, fraud prevention, and currency conversion.
The processing fee compensates credit card companies for their roles in enabling seamless, secure, and convenient electronic payments.
The Australian Competition & Consumer Commission (ACCC) lists the current estimated average card surcharges as:
Businesses accepting these payment types will incur costs within these ranges, although these figures may vary.
The Stripe payment costs for businesses in Australia are:
International cards: 3.5% + AUD $0.30 per transaction
To calculate credit card processing fees, you will need these details:
Next, use this formula to calculate the payment processing fees:
Total Processing Fee = (Transaction Amount × Processing Fee Percentage) + Fixed Fee
Let’s look at an example of how you can use the above formula to calculate credit card processing fees, using the following details:
Now, we’ll use the formula to determine the processing fee:
Total Processing Fee = ($200 × 0.015) + $0.30 = AUD $3.30
So, the total processing fee for an AUD $200 Visa credit sale would be AUD $3.30.
Remember, you can also use the QuickBooks credit card processing fee calculator to help you accurately calculate payment fees.
Yes, payment processing fees are legal in Australia. Businesses are allowed to charge customers a surcharge to cover the costs of credit card or debit card transactions, as long as the fees reflect the true cost of processing the payment.
However, under the Competition and Consumer Act 2010, businesses are not allowed to charge excess surcharges. This ban on excess payment surcharges applies to payments made via these methods:
You can learn more in this SBS news article about credit card surcharges in Australia.
Yes, businesses in Australia can legally pass payment processing fees to customers in the form of a surcharge. This practice is allowed as long as the surcharge reflects the true cost of processing the payment and is not excessive.
The ACCC guide to payment surcharges is a good reference for business owners – providing clear information about what you can and can’t include when working out surcharges.
Yes, payment processing fees are tax deductible for Australian businesses. These fees are considered regular business expenses and can be deducted from a business’s taxable income.
You can find out more in the ATO guide to claiming a tax deduction for operating expenses.
It’s never been easier to manage financial transactions with QuickBooks online accounting software. Build the right plan for your business to unlock features such as secure cloud storage, mobile accounting, app integration and more.
You can also find helpful guides for small business owners on the QuickBooks blog. Visit our guides to invoice payment terms and calculating handling fees to boost your knowledge of key accounting concepts.
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