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Surcharging & Gateway Fees

Apr 15, 2024 | Article


In an economy where cost reduction is a key metric it’s important to consider the ability to pass on Merchant Service Fees to payers choosing to use cards. Implementation of surcharging can also be a great way to guide payers into non-fee alternative pathways.   

For the highest cost card transactions, which are generally international transactions, there is also a security benefit when the passing on of the Merchant Service Fee via surcharging encourages users into selection of services such as FlyWire. FlyWire has enhanced security and compliance protocols over traditional card payments that can help reduce fraud and deliver more competitive exchange rates to your payers.

Differential surcharging allows you to recover an amount appropriate to the type of card across local and international and credit and debit by scheme. This can be configured in your instance of Xetta to be applied to all, or a select subgroup of your payments.

Before you begin, some things to consider

Take a look at our video on some considerations when preparing to surcharge in xetta

It is important to understand the rates of Merchant Fees you are being charged by card type and category and choose the rate to pass on. Your Merchant Service Provider (usually your bank) will be able to help you understand these rates, and the model being used for calculation of Merchant Fees. Once you have established a set of rates to pass on, it’s best check these against rules from the Australian Consumer and Competition Commission and Reserve Bank of Australia for surcharging.

Understand the accounting treatment you want to use for the Surcharge revenue, how to report it, and how to interface it to your organisations financial systems will assist in assessing the effectiveness of your program of recouping Merchant Service Fees.   

Developing a communication plan to let customers and payers know a Merchant Surcharge will be implemented, some of the reasons for implementing the fee and what fee-free alternative payment methods you will be offering should form part of the plan.  More and more we are seeing Merchant Fee Surcharges being applied to card payments, and payers appreciate having information of when and how this change to their experience paying you will happen.

Next Steps

Click here to find out more about setting up in Surcharging in Xetta Surcharging & Gateway Fees – Xetta

If you would like more information or need some assistance, the Xetta support team are always happy to assist when you email  Always remember, if you need assistance beyond just some guidance the Support team can be engaged to manage the project to implement surcharging for you.