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Card Payment Surcharges are Ending What Pharmacy Owners Need to Know September 2026

From 1 October 2026, businesses will no longer be able to apply surcharges to payments made using debit, prepaid or credit cards through the major card networks. Customers will pay the displayed price, regardless of whether they choose to pay by card.

However, businesses should not relabel a card surcharge as another type of fee where the charge is effectively imposed because a customer pays by card.

While this will simplify the payment experience for consumers, the cost of accepting card payments will remain. Businesses will continue to incur merchant and payment processing fees and will need to determine how those costs will be managed.

Before 1 October 2026, pharmacy owners should:

Why this matters for pharmacies

What should pharmacy owners do now? • Review merchant fee arrangements and payment processing costs; • Understand the annual cost of card acceptance; • Assess the impact on profitability and cash flow; and

For many pharmacies, card payments account for most customer transactions. Historically, surcharges have helped offset some of the cost of accepting those payments. From October 2026, that option will no longer be available.

• Determine whether pricing or operational changes may be required.

Pharmacy owners may need to:

The removal of card surcharges does not remove the cost of accepting card payments. Pharmacy owners should use the lead-up to 1 October 2026 to understand these costs and determine the most appropriate strategy for managing their impact on profitability.

• Absorb the cost and accept some margin impact; • Review pricing on front-of-shop and retail products; • Identify operational efficiencies to offset the additional cost; or • Negotiate lower merchant fees with payment providers. The most appropriate approach will depend on transaction volumes, margins and existing pricing strategies.

What isn’t changing? The reforms apply only to card payment surcharges. Genuine service fees, booking fees, and weekend or public holiday surcharges are not affected.

Key takeaway

We can assist in assessing the financial impact of the changes, reviewing pharmacy margins and pricing strategies, and helping your business prepare for the transition. Disclaimer: This information is general in nature and should not be relied on as legal, regulatory or professional advice.

Let’s Talk If you’d like to further discuss the upcoming changes and how it might affect your business, please get in touch with our team.

Norman Thurecht Managing Partner p +61 7 3222 8444 e nthurecht@pitcherpartners.com.au

Mark Nicholson Partner p +61 7 3222 8444 e mnicholson@pitcherpartners.com.au

Felicity Crimston Partner p +61 7 3222 8444 e fcrimston@pitcherpartners.com.au

Rob Hughes Partner p +61 7 3222 8444 e rhughes@pitcherpartners.com.au

Pitcher Partners is an association of independent firms. An Independent Queensland Partnership ABN 84 797 724 539. Liability limited by a scheme approved under Professional Standards Legislation. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities.

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