By Logan Chamber of Commerce president Arwen McGregor
As of 1 October, businesses are no longer permitted to pass card processing fees on to customers as an extra line item.
The price displayed on the till, menu, or shelf is now the final amount, putting an end to unexpected tap-and-go fees at checkout.
For everyday consumers, this represents a clear victory in pricing transparency.
Shoppers and diners no longer face hidden add-ons for using modern, contactless payment methods.
Eliminating these micro-transactions removes the frustration of unexpected fees, creating a smoother and more predictable checkout experience across retail, hospitality, and service sectors.
For business owners, however, the shift brings a mixed reality.
While merchant processing costs will not disappear, regulatory reforms accompanying the surcharge removal, such as reduced interchange fee caps, are designed to lower baseline transaction expenses
This will particularly benefit small businesses that historically faced higher merchant rates.
They are still paying the highest rates, it’s just a little bit less than before.
However many businesses have only been paying the gap for the past decade and this will have an impact on their costs.
Generally, businesses that have under $1 million in card processing will pay between 1%-2% in flat rates.
Businesses with over $1 million and up to $100 million may be able to get their transaction costs to under 1%, and the really big businesses that have more than $100 million in card transactions can negotiate their rates to between 0.5%-0.7%.
Without the ability to pass fees directly to customers, businesses must absorb these overheads or adjust their general pricing models.
Incorporating payment processing fees directly into standard item prices allows merchants to preserve their profit margins while maintaining compliance with transparent pricing rules.
Ultimately, the move encourages business owners to review supplier arrangements, negotiate better merchant service rates, and streamline operations for a friction-free payment environment.
We have all been conditioned now to use our cards, phones, and watches to make digital payments, should we go back to cash?
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