The Reserve Bank’s decision to remove credit and debit card surcharges from October 2026 has sparked immediate discussion across the sector. These card surcharge changes raise a straightforward question for pharmacy and healthcare owners: when surcharges are removed, how will digital payment costs be restructured, and where will those costs ultimately sit?
This change comes at a time when operating pressures remain elevated. Recent RBA decisions and Federal Budget measures continue to reinforce a clear trend: costs are rising, margins are tightening, and operational efficiency is becoming non-negotiable.
For pharmacies, medical practices and allied health providers where digital payments dominate, this is more than a policy shift. It directly impacts merchant fee structures, pricing models and cashflow management. At the same time, interest rates remain a focus, with many owners continuing to reassess lending structures, refinance existing facilities and review how debt supports both growth and liquidity.
The bigger picture: compounding cost pressure
Across the sector, pressure is cumulative rather than isolated:
- Merchant and payment processing costs
- Wage growth and staffing pressure
- Rent resets and lease renewals
- Ongoing margin compression
In this environment, even relatively small structural changes, such as payment fee models, can have a material impact on annual profitability.
Over the next 12 to 18 months, we expect businesses to reassess how merchant fees are structured and recovered, whether current payment solutions remain cost-efficient, and how lending and cashflow facilities are supporting overall margin stability. We also expect banks and payment providers to introduce new pricing structures as they respond to the removal of surcharging.
How Allfin has been helping with card surcharge changes
We’re working closely with banking and payments partners to understand how these changes will flow through in practice ahead of the October 2026 implementation. In next month’s update, we’ll share insights from key partners on how the payments landscape is expected to evolve, and what pharmacy and healthcare owners should be considering now.
If you’d like to review your lending structure, merchant fee exposure or broader finance setup, this is a timely point to ensure everything remains aligned with your current operating environment.
~ Mark Churchill, Managing Director.
