Westpac cuts businesses' payment fees to 0.79%

Flat rate for EFTPOS terminals and PayWay will be reduced to 0.79%, said Westpac.

Westpac is cutting payment fees for business customers to 0.79%, ahead of Australian regulators’ surcharging ban.

Westpac's Flat Transaction Rate for EFTPOS terminals and PayWay will be reduced from 1.2% to 0.79%, whilst its EFTPOS Air and OnlinePay customers will see rates reduced from 1.4% to 1.25%.

Westpac said that this is the lowest rate in the market, according to a September 2026 announcement.

The Australian bank expects the reduction to save a small business $80 a month, or nearly $1,000 a year based on typical small business transaction volumes of around $20,000 per month.

The Reserve Bank of Australia (RBA) announced in March 2026 that it is removing surcharges on debit, prepaid, and credit cards on designated EFTPOS and card networks, saying that it no longer achieves its original purpose.

The RBA also lowered the caps on interchange fees paid by Australian businesses. This change will come into effect on 1 October for domestic cards, and 1 April 2027 for foreign cards alongside some other changes to payment costs.

“As small businesses prepare to absorb higher costs with card payment surcharging ending from 1 October, passing on these savings means businesses can keep more of what they earn and better manage that transition,” said Paul Fowler, chief executive of Business & Wealth at Westpac.