Cash discounts · Australia wide
Offering a discount for cash
Card surcharges are being removed from 1 October 2026. The Reserve Bank of Australia says businesses can still offer discounts for particular payment methods — here is what a cash discount is, how to price one, and how to make cash easy to get on site.
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Short answer
Can a business offer a discount for cash in Australia?
Yes. The Reserve Bank of Australia states that businesses can continue to offer discounts for particular payment methods, and that removing its prohibition on no-surcharge rules is not intended to prevent discounts being offered to consumers for using certain payment methods. The RBA also names discounts as a way businesses can steer customers to other payment methods instead of using surcharges. Card surcharging itself is being removed from 1 October 2026, so a cash discount is now the main pricing lever a shop has left.
Sources: Reserve Bank of Australia, Removal of Payment Surcharges From 1 October 2026 — Frequently Asked Questions, Review of Merchant Card Payment Costs and Surcharging — Conclusions Paper, Chapter 2 and Media Release 2026-10. Reviewed 9 September 2026.
Definitions
Cash discount, surcharge and no-surcharge rule defined
A cash discount is a reduction from a business's normal displayed price that applies only when the customer pays with notes and coins. The displayed price remains the price everyone pays, and the cash price sits below it. A sign reading "5% off when you pay cash" is a cash discount.
A card surcharge is an extra amount added on top of the displayed price when a customer pays by card. It is the opposite direction of the same idea: the surcharge raises the card price, while a discount lowers the cash price.
A no-surcharge rule is a card network rule that stops a business adding a surcharge to card payments. The RBA's Payments System Board concluded it is in the public interest to remove surcharging by lifting the prohibition on no-surcharge rules for all designated card networks — eftpos, Mastercard and Visa — as set out in Chapter 2 of the Conclusions Paper. The networks have each announced they intend to introduce no-surcharge rules from 1 October 2026.
Cost of acceptance is the total cost a business pays to accept a payment. It includes scheme fees, interchange, the provider's margin, terminal rental and any minimum monthly charge. Cost of acceptance is the number a cash discount has to be priced against, because it is the cost a cash sale avoids.
Why now
What changes on 1 October 2026, and why cash discounts matter
Until now, many Australian businesses recovered card costs by surcharging. From 1 October 2026 that option is closing: the RBA lifted its prohibition on no-surcharge rules, and the designated card networks have said they intend to introduce those rules from that date. The RBA also notes that some payment providers have indicated they may switch surcharging functionality off from that date, which means the change can arrive in a business's terminal without the business doing anything (RBA FAQs).
That leaves three levers for a business facing the same card costs with no surcharge: cut the cost of acceptance, absorb it in the shelf price, or shift some volume to a cheaper payment method. A cash discount is the third lever, and it is the one the RBA explicitly describes as available. The RBA's own guidance on lowering payment costs also suggests reviewing whether you are on the best plan and shopping around between providers (impact and implementation).
Practically, a discount for cash does two things at once for a shop. It reduces the share of sales that carry a card fee, and it gives the customer a visible reason to choose the cheaper method rather than feeling penalised for choosing the dearer one.
Compare
Cash discount versus card surcharge, side by side
Same economics, opposite direction — and only one of them survives 1 October 2026.
| Point of difference | Cash discount | Card surcharge |
|---|---|---|
| How the price moves | Reduces the displayed price for cash payments | Adds an amount on top of the displayed price for card payments |
| Status from 1 October 2026 | Can continue to be offered, per the RBA | Removed as card networks introduce no-surcharge rules |
| How the customer reads it | A reward for choosing cash | A penalty for choosing a card |
| Set by | The business, at whatever level it can afford | Previously the business, capped at its cost of acceptance |
| What it needs to work | Clear signage and cash available on site | Terminal functionality the provider may now disable |
| Effect on card fees | Fewer card sales, so fewer per-sale fees | Recovers the fee rather than reducing it |
How to
How to set up a cash discount in five steps
Price it from your own statement, not from a headline rate.
- 1
Work out what card acceptance actually costs you
Take your last merchant statement and divide total card fees by the number of card sales. That gives your real cost per card transaction, in cents, at your own average basket. A cash discount only makes sense if it is smaller than the cost you avoid.
- 2
Choose a discount you can afford at every basket size
A percentage discount grows with the sale, while a flat cents-per-sale discount stays predictable. Small-basket businesses such as convenience stores and takeaways usually price a flat discount; higher-ticket trades usually price a percentage.
- 3
Set the displayed price as the card price
Display the normal price as the price everyone pays, then show the cash price as a reduction from it. That way the advertised price is never lower than what a card customer is charged, which is what keeps a pricing display straightforward.
- 4
Make cash easy to get on site
A cash discount only changes behaviour if customers have notes in hand. Venues that run a cash-discount offer usually pair it with an ATM on site, so a customer can withdraw and pay cash in the same visit.
- 5
Train staff and label the offer clearly
Put one short sign at the counter and one at the point of decision, and give staff a single sentence to say. Ambiguous signage is the most common reason a cash discount confuses customers or gets abandoned.
Worked example
What a cash discount is worth on a small basket
Illustrative arithmetic using round numbers — replace them with the figures on your own merchant statement.
| Line | Card sale | Cash sale with a 20c discount |
|---|---|---|
| Displayed price | $10.00 | $10.00 |
| Discount given | — | $0.20 |
| Card acceptance cost avoided | — | $0.20 (example cost per card sale) |
| Amount the business keeps | $9.80 | $9.80 |
| Cash in the till | No | Yes |
The point of the example is the discipline, not the numbers: a discount set at your cost per card sale is cost-neutral, a discount below it improves your margin on every cash sale, and a discount above it costs you money. Your real cost per card sale comes from dividing total card fees on a statement by the number of card transactions in the same period. We will do that calculation with you for free on the EFTPOS fee comparison page.
Practicalities
A cash discount only works if customers can get cash
The failure mode we see most often is a venue advertising a cash price in a location where the nearest ATM is a block away. The customer wants the discount, has no notes, and pays by card anyway. Cash access on site is what converts the offer into behaviour.
- An ATM inside the venue, in line of sight of the counter where the offer is displayed
- Signage at the point of decision as well as at the register
- One sentence staff can say when a customer reaches for a card
- A float and change plan for the extra cash volume, especially on weekends
- A discount level written down, so it is applied the same way on every shift
Under free ATM placement the machine, cash float, connectivity and servicing are funded by us, the venue pays nothing, and the venue earns a share of each withdrawal. For a business introducing a cash discount, that pairing is the practical version of the RBA's own point about steering customers to other payment methods.
By state
Cash discounts and card costs in every state and territory
The surcharging change is national. What differs by state is your trading pattern, your basket size and the providers competing for your terminal.
- Card and EFTPOS costs in New South WalesCompare fees in NSW before you price a cash discount.
- Card and EFTPOS costs in VictoriaCompare fees in VIC before you price a cash discount.
- Card and EFTPOS costs in QueenslandCompare fees in QLD before you price a cash discount.
- Card and EFTPOS costs in Western AustraliaCompare fees in WA before you price a cash discount.
- Card and EFTPOS costs in South AustraliaCompare fees in SA before you price a cash discount.
- Card and EFTPOS costs in TasmaniaCompare fees in TAS before you price a cash discount.
- Card and EFTPOS costs in Australian Capital TerritoryCompare fees in ACT before you price a cash discount.
- Card and EFTPOS costs in Northern TerritoryCompare fees in NT before you price a cash discount.
FAQ
Cash discount questions Australian businesses ask
Yes. The Reserve Bank of Australia states that businesses can continue to offer discounts for particular payment methods, and that removing its prohibition on 'no-surcharge' rules is not intended to prevent discounts being offered to consumers for using certain payment methods. The RBA also points to discounts as a way businesses can steer customers to other payment methods instead of surcharging. Confirm your own pricing displays with your payment service provider and the ACCC guidance.
A cash discount is a reduction from a business's normal displayed price that applies only when the customer pays with notes and coins. The displayed price stays the price everyone pays, and the cash price sits below it. It is the mirror image of a surcharge, which adds an amount on top of the displayed price when a customer pays by card.
Because card surcharging is being removed. The RBA's March 2026 Conclusions Paper confirmed the Payments System Board decided to lift the prohibition on 'no-surcharge' rules for eftpos, Mastercard and Visa, and the designated card networks have each announced they intend to introduce no-surcharge rules from 1 October 2026. Businesses that used a surcharge to recover card costs need another lever, and a discount for cash is the one the RBA itself names.
No. A surcharge adds a fee on top of the displayed price for card payments. A discount reduces the price below the displayed price for cash payments. The customer outcome can look similar, but only one of them is affected by the removal of card surcharging.
No larger than the card acceptance cost you avoid. If card sales cost you an average of 40 cents each, a discount above 40 cents per sale costs you money on every cash transaction. Work it out from your own merchant statement rather than from an advertised headline rate, because terminal rental, minimum monthly fees and scheme fees all sit inside the real number.
Almost always yes. A cash discount shifts some sales to cash; it does not replace card acceptance, and refusing cards outright loses sales. The practical combination is a competitively priced terminal for card sales plus an ATM on site so cash is available for the discounted price.
It works best where baskets are small and frequent and where the customer decides at the counter — convenience stores, takeaways, cafes, bottle shops, barbers, market stalls, pubs and clubs. It works less well where payment happens before arrival, online, or on account.
The discount should apply on the same terms to every customer who pays with cash, and it should be displayed so a customer can see it before they decide how to pay. Keep the offer simple, put it in writing at the counter, and check your pricing display against the ACCC guidance the RBA refers businesses to.
Price your cash discount against your real card costs
Send a recent merchant statement and we will work out your cost per card sale, then show what an ATM on site would add. Phone 0412 025 552, Mon–Fri 8:30am – 7:30pm AEST.
Explore next
Related pages on payment costs and cash access
- RBA card payment fee changesDated log of each announcement, with the original source.
- EFTPOS surcharge rulesWhat changes for card surcharging and when.
- Compare EFTPOS machine feesSend a statement and see your real cost per sale.
- Free ATM placementPut cash on site at no cost to the venue.
- ATM surcharge fees explainedWhat a withdrawal costs and who receives it.
- How ATMcash worksOur model, our fees and what a venue earns.
Disclaimer: this page is general information only, summarised from publicly available Reserve Bank of Australia material and reviewed on 9 September 2026. It is not financial, legal or taxation advice and is not a substitute for the original source documents. The RBA directs businesses to consult their payment service provider and the ACCC guidance on appropriate pricing displays, and card network rules may change. ATMcash Australia accepts no liability for decisions made in reliance on this page — verify the detail with the original source and your own adviser before acting.