The Numbers
Commonwealth Bank is cutting merchant service fees from 1.1% to 0.99% per transaction for in-store payments, effective October 1, 2026. The rate includes GST and applies only to business customers on Single Rate Transaction plans.
Timing matters: October 1 is also when the Reserve Bank of Australia bans surcharging across all card networks (eftpos, Mastercard, Visa). Merchants will no longer be able to pass payment processing fees to customers.
What This Means
For context: CBA serves 15.9 million customers and employs 48,900 people. On a A$27.56 billion revenue base, they just posted A$11 billion net profit, up 7%. They can afford the margin hit.
Small businesses cannot. A cafe doing A$500k annual card revenue currently pays A$5,500 in merchant fees (1.1%). Under the new rate: A$4,950. That is a A$550 annual saving, or A$46 per month. Not transformational, but directionally helpful when you can no longer surcharge.
The catch: in-store only. Online transactions, which increasingly dominate B2B commerce, are not included in this rate cut.
The Market Reality
CBA is moving first among the big four, likely testing competitive response. For comparison, Chase payment processing fees for small business in the US typically range 1.5% to 3.5% depending on card type and volume.
ANZ merchant fee structures vary: some flat-rate plans sit at 1.3% to 1.8%, while tiered pricing can go lower for high-volume merchants. The 0.99% rate positions CBA competitively but is not dramatically below market.
Worth noting: Victorian small business Yarra Valley Rides responded to the surcharge ban by ditching card payments entirely. That is an edge case, but it signals the pressure point. Most businesses will absorb the fees or raise base prices.
What Sales Teams Should Know
If you sell payment processing, POS systems, or financial services to SMBs: this changes the conversation. The surcharge ban removes a cost-recovery mechanism. Businesses will care more about basis points. CBA just set a benchmark that competitors will need to match or beat.
For B2B sales teams taking card payments: factor this into your pricing models. The 0.5% to 1.5% you used to pass through as a surcharge now comes out of margin or gets baked into list price. Run the numbers before October 1.