Passing on card processing fees

Many practices consider adding a card surcharge to invoices to pass processing costs on to clients.

The Reserve Bank of Australia (RBA) announced that surcharges on most debit and credit cards will be banned from 1 October 2026. We believe focusing on long-term stability is better for your practice than implementing a feature that will soon be outdated.

Surcharging can also cause point-of-payment friction for your clients. Extra fees often lead clients to choose bank transfers, which increases the time your team spends on manual data entry and time spent tracking missing payments.

How to offset payment processing costs through your accounts

Payment processing fees are a legitimate business expense. By managing these correctly in your accounts, the actual cost to your practice is often lower than the initial rate.

Tax deductions

Processing fees are fully tax-deductible, just like software, rent, or other professional services. Every dollar you spend on these fees helps to reduce your taxable income.

GST input tax credits

If you are registered for GST, you can usually claim back the GST component of your processing fees as an input tax credit, which reduces the amount you owe on your next BAS.

splose processing fees (via Stripe) include GST. This means you can recover approximately 1/11th of the fee. On $2,000 in annual fees, that is roughly $182 back through your BAS.

Again, your accountant or bookkeeper is best placed to confirm eligibility and make sure these are being claimed correctly.

The broader case for online payments

Online payments offer significant benefits beyond cost. Practices that rely on bank transfers often underestimate costs in admin and reconciliation. Each transfer requires manual matching, following up on missing references, and checking for late payments.

splose Payments automates this entire process. Matching happens automatically, and your sync with Xero or QuickBooks updates in real-time. The time saved often far outweighs the processing fees.

We recommend speaking with your accountant about the best way to categorise and claim these fees. Most practices can significantly lower their net costs through standard tax treatment.

Ready to simplify your practice? Experience the ease of automated reconciliation and seamless accounting sync. Explore splose Payments