The Reserve Bank of Australia is cutting interchange fees and banning surcharges, but the real impact on business margins is often misunderstood.

The End of “Pass-Through” Card Fees

For years, many Australian businesses have treated card fees as a pass-through cost.

Customer pays by card → fee gets added → business stays whole.
Simple.

But recent changes from the Reserve Bank of Australia are about to fundamentally reset that model.

From 1 October 2026, two things happen at once:

• Interchange fees are cut significantly, with the interchange component dropping from around 0.8% → 0.3%
• Card surcharges are banned

This changes how many businesses manage pricing, margins, and profitability.

What Are Merchant Fees in Australia?

Breaking Down the Typical 1.8% Merchant Fee

Let’s start with the headline number most businesses recognise:

“I pay about 1.8% in merchant or card fees in Australia.”

That 1.8% isn’t one fee, it’s a bundle:

• ~0.8% interchange fees (set within the payments system)
• ~1.0% made up of card network fees (e.g. Visa, Mastercard) and your provider’s margin

How the RBA Interchange Fee Changes Impact Your Costs

In simple terms, your total cost does fall.

Using the example above:
1.8% → ~1.3% (if interchange savings are fully passed through)

So yes, your costs reduce by around 0.5%.

But that’s only half the story.

The Hidden Impact of the Credit Card Surcharge Ban

Why Lower Fees Don’t Always Mean Higher Profit

If you were already absorbing merchant fees:
👉 Good outcome, your costs fall and your margin improves.

But if you were passing on credit card surcharges:

• 👉 Your costs drop 0.5%
• 👉 Your revenue drops 1.8%

That’s a net negative impact on margin.

Example: How the Surcharge Ban Affects a $100 Sale

Old vs New Payment Economics

Let’s say you sell something for $100.

Old world (with surcharge):

• Customer pays: $101.80
• You receive: $100

New world (no surcharge):

You now have two choices.

Option 1: Absorb the cost

• Customer pays: $100
• You receive: ~$98.60–$98.80

Option 2: Adjust pricing

• Customer pays: ~$101–$102
• You maintain your margin

How to Reduce Merchant Fees in Australia

If you’re currently passing on merchant fees, you need to act, not drift.

1. Review Your Payment Provider

Many businesses haven’t focused on their merchant rate because:

“It was always passed on anyway.”

That mindset no longer works.

2. Reduce Your Underlying Payment Costs

Start with:

• Least-cost routing (debit over credit)
• Lower-cost providers
• Alternative payment methods like PayID and Osko

3. Rethink Your Pricing Strategy

You have two options:

• Do nothing → your margins fall
• Adjust pricing → recover some or all of the cost

But make it a conscious decision.

What Businesses Should Do Before October 2026

• Review your merchant fee structure
• Understand your payment mix (debit vs credit)
• Model the impact on margins
• Decide how you will adjust pricing

The Bottom Line on RBA Card Fee Changes

Yes, merchant fees in Australia are coming down.

But the bigger shift is this:

You’re losing the ability to pass them on.

What was once a neutral cost is now a direct margin decision.

Ignore it, and you will feel it.
Manage it, and you can come out ahead.

Next Steps

If you want to review your current merchant costs, speak to a provider like Shabaas Pay (full disclosure: a business I work with).

If you want help working through what this means for your pricing and margins, feel free to reach out.

Wayne Wanders is an experienced Business Advisor and Outsourced CFO who can help to scale and grow your business profitably. 

Contact Wayne on wayne@arealcfo.com.au or 0412 227 052.

Click on the below buttons to access other free Resources developed by Wayne Wanders, A Real CFO to help your business scale and grow profitably

Want a confidential discussion on your business situation, help with your grant application or to learn more about my Outsourced CFO Services, simply email me at wayne@aRealCFO.com.au or call me on 0412 227 052

A business prenup is not about mistrust.
It is about clarity when life changes.

As an Outsourced CFO working with small and growing businesses, I have seen life changes destroy both friendships and businesses.

One example that sticks with me involved two business partners running a Christmas tree business on Sydney’s Northern Beaches. It was seasonal, profitable, and built on a strong working relationship.

Then life happened.

One partner decided to move their family to Queensland. A great life choice for that partner, but there was no agreement on what happened next with the business.

There was no plan for:

• What happens if one partner steps away
• How the business would be valued
• Whether one partner could buy the other out
• How profits and workload would be handled

What started as a strong partnership quickly became uncomfortable. Not because either person was unreasonable, but because nothing had been agreed while things were good.

Why Business Prenups Matter

A business prenup, such as a shareholders or partnership agreement, creates clarity before pressure arrives. From a CFO perspective, it helps answer critical questions like:

• What happens if someone exits
• How business value is determined
• What happens if contributions change
• How financial and strategic decisions are made

These are not negative conversations. They are protective ones.

The Real Risk Is Not Planning

Most business breakdowns do not come from bad intent. They come from changing circumstances. When there is no agreed framework, emotion fills the gap and financial decisions suffer.

Final Thought

A business prenup is not about planning for failure.
It is about protecting relationships, value, and momentum when life changes.

If you are building a business with others, the best time to have these conversations is before you need them.

👉 If you want help reviewing your partnership structure, exit scenarios, or financial arrangements, this is the kind of work I do at A Real CFO. Feel free to reach out for a confidential conversation.

Wayne Wanders is an experienced Business Advisor and Outsourced CFO who can help to scale and grow your business profitably. 

Contact Wayne on wayne@arealcfo.com.au or 0412 227 052.

Click on the below buttons to access other free Resources developed by Wayne Wanders, A Real CFO to help your business scale and grow profitably

Want a confidential discussion on your business situation, help with your grant application or to learn more about my Outsourced CFO Services, simply email me at wayne@aRealCFO.com.au or call me on 0412 227 052

In a study of more than 1,100 parole hearings, researchers found something striking:

• Prisoners seen early in the morning were granted parole around 70% of the time
• Those seen late in the day were granted parole less than 10% of the time

And here’s the key insight:

It had nothing to do with the prisoners.

It was decision fatigue.

What is decision fatigue?

Just like your body gets tired after physical effort, your brain gets tired after making decisions.

The more decisions you make:

• The more mental energy you burn
• The harder it becomes to think clearly
• The more likely you are to default to shortcuts

When this happens, your brain does one of two things:

1️⃣ Does nothing – sticks with the status quo
2️⃣ Acts impulsively – makes fast decisions without thinking through the consequences

How does decision fatigue cost you money?

If you’re asking:

• A customer to sign a contract
• Your boss for a pay rise or promotion
• A stakeholder to approve a decision

…and you do it late in the day, they’re more likely to say no — not because it’s a bad idea, but because they’re mentally depleted.

On the flip side, when you’re tired and someone offers an upgrade, add-on, or impulse buy, you’re far more likely to say yes.

Either way, decision fatigue quietly costs you money.

What can you do about it?

1️⃣ Make big decisions early
Do your most important thinking in the morning. Avoid major commitments late in the day.

2️⃣ Reduce the number of decisions you make
Stop wasting mental energy on low-value choices. Save it for what really matters.

3️⃣ Keep it simple
For smaller decisions, choose the simplest option.
And when persuading others, fewer choices lead to better outcomes.

Decision fatigue isn’t a weakness.  It’s a capacity issue.

Protect your decision-making… and you protect your money.

Contact Wayne on wayne@arealcfo.com.au or 0412 227 052.

Click on the below buttons to access other free Resources developed by Wayne Wanders, A Real CFO to help your business scale and grow profitably

Want a confidential discussion on your business situation, help with your grant application or to learn more about my Outsourced CFO Services, simply email me at wayne@aRealCFO.com.au or call me on 0412 227 052

As we step into a new year, most businesses are busy planning more.

More goals.
More initiatives.
More noise.

But progress often comes from clarity, not complexity.

That’s where the Stop / Start / Keep framework comes in.

▶️ START

What should you begin doing that actually moves the needle?

Ask yourself:

• What would create real value for our customers?
• What are customers already asking for?
• Where could we improve speed, quality or efficiency?

Growth usually comes from doing fewer things — better.

⛔ STOP

This is where the quickest wins live.

Ask:

• What are we doing that adds little or no value?
• What drains time, energy or attention?
• Where are we fixing the same problems again and again?
• What are customers frustrated by?

If it doesn’t serve the customer or the business, it’s worth letting go.

✅ KEEP

Protect what’s working.

Ask:

• What do customers genuinely value?
• What consistently delivers results?
• What works well in one part of the business that could work elsewhere?

Too many businesses break what’s already working.

What next?

Prioritise your list in two ways (with 1 being the most important):

1. Importance – what matters most?
2. Ease – what’s simplest to implement?

Add the scores together.
The lowest number becomes your first move.

Simple. Focused. Effective.

If you want 2026 to be a year of clarity, momentum and better decisions — this is a powerful place to start.

👉 What’s one thing your business should stop, start, or keep this year?

Contact Wayne on wayne@arealcfo.com.au or 0412 227 052.

Click on the below buttons to access other free Resources developed by Wayne Wanders, A Real CFO to help your business scale and grow profitably

Want a confidential discussion on your business situation, help with your grant application or to learn more about my Outsourced CFO Services, simply email me at wayne@aRealCFO.com.au or call me on 0412 227 052

Great business lessons often come from unexpected places.

In Test of Will, Glenn McGrath credits his success as one of Australia’s greatest fast bowlers to one simple idea: control the controllables.

He focused only on what he could influence. He could bowl the right delivery to force a mistake, but he couldn’t control whether the catch was taken. So, he didn’t waste energy on it.

That lesson matters more than ever.

You can’t control interest rates.

You can’t control market uncertainty.

But you can control how you respond.

You can choose where to focus, what to improve, and how to innovate in your business.

History shows that those who act decisively during uncertain times — who control what they can — are the ones who outperform when conditions improve.

So take a page from Glenn McGrath’s playbook: control the controllables, and innovate now.

If you want help identifying what you can control in your business, and turning that focus into a clear plan, let’s talk.  Send me a message, and we’ll work through the levers that actually move performance, even in uncertain times.

Contact Wayne on wayne@arealcfo.com.au or 0412 227 052.

Click on the below buttons to access other free Resources developed by Wayne Wanders, A Real CFO to help your business scale and grow profitably

Want a confidential discussion on your business situation, help with your grant application or to learn more about my Outsourced CFO Services, simply email me at wayne@aRealCFO.com.au or call me on 0412 227 052

For aspiring business owners, here’s advice worth sitting with.  Don’t ask if it can be built.  Ask, should it be built.

Too many ideas get validated on feasibility alone.  Yes, the tech works. Yes, the product can be built. Yes, the solution is clever.

But the better question is this:

• Is it solving a real pain point that someone will actually pay for; and
• at a level that covers the build cost; and
• delivers a return on your time, effort, and capital?

Businesses don’t fail because they can’t build.  They fail because they build things no one values enough.

Before you invest months or years, pressure test the demand.  Talk to customers. Test willingness to pay. Validate the problem, not just the solution.

Because building something is easy.

Building something worth paying for is the hard part.

If you’re working on a new idea and want to pressure test whether it’s commercially viable, not just technically possible, let’s talk.

Send me a message and we’ll have a practical conversation about whether it should be built.

Wayne Wanders is an experienced Business Advisor and Outsourced CFO who can help to scale and grow your business profitably. Wayne may also be able to assist you in preparing any grant application. 

Contact Wayne on wayne@arealcfo.com.au or 0412 227 052.

Click on the below buttons to access other free Resources developed by Wayne Wanders, A Real CFO to help your business scale and grow profitably

And Wayne is always posting about new grants, funding options and other resources on LinkedIn that can help your business scale and grow profitably.  Click on the below links and connect with Wayne or follow A Real CFO on LinkedIn.

Want a confidential discussion on your business situation, help with your grant application or to learn more about my Outsourced CFO Services, simply email me at wayne@aRealCFO.com.au or call me on 0412 227 052

Recently one of our dogs got bitten by a paralysis tick.  First we had the expense of the trip to the vet for the lifesaving anti-venom and initial recovery.  We were lucky our dog survived the initial stages.  But the tick bite caused issues with her eyes.  One eye was successfully treated, but the other eye did not recover.  Another expensive trip to the vet to remove an eye.

Much like a lone tick can endanger a dog’s health, small issues within your business may seem insignificant at first glance. Yet, if left unattended, they have the potential to escalate into formidable threats, potentially causing irreparable harm, much like our dog’s situation.

The key lies in staying vigilant and addressing even the tiniest of concerns promptly. By doing so, you can shield your business from unforeseen risks and secure its long-term success.

So, don’t underestimate the significance of the little things—address them proactively to safeguard your business’s future.

PS our dog is doing as well as can be expected for dog with one eye.

And if you want help to scale and grow your business profitably, please to contact me below

Contact Wayne Wanders for your FREE Discovery Session to learn how your business can scale and grow profitably

To ensure Wayne helps your business specifically, the best approach Wayne has found is to have an obligation free Discovery Session with you.  In this session we will review your current business in a factual and objective manner, to better understand the challenges that you face.

At the end of this Discovery Session, you will have multiple ideas on how your business can scale and grow profitably.

Simply fill in the contact form below or email Wayne at wayne@aRealCFO.com.au or call Wayne on 0412 227 052 to organise one of these obligation free Discovery Sessions.

To get Wayne to help your business, simply use the contact form on the left to email Wayne or call him on 0412 227 052.

Here are 5 factors to consider when deciding if you should set up your business as a sole trader or company.

Risk

I use the example of sole trader paramedic who runs medical tents at school boy rugby union carnivals.  What would happen if someone was seriously injured at one of these events (which has happened at similar events) and the paramedics insurance company denied full cover?

As a sole trader, the paramedic could lose their house if the parents sued them.

If:

• the business was set up as a company, there is a layer (like a brick fence) between the paramedic and the family which could help save the paramedic’s house.
• you or your partner have assets, or you are in a high risk business, you need to seriously think about operating as a company (and the cost of having a company as insurance).
• you have no assets or the risk is very low, then operating as sole trader may be the option for you.

What your Clients Want

I have seen it from time to time, that the client wants to do business with a company rather than a sole trader.  If this is the case for your clients, then you have no choice but to set up as a company.

Also for some businesses, they may see a company as much bigger than just a sole trader.

Your future funding plans

You need to understand what your future funding plans are.

If you want to look for investors for example, rarely will they invest in a sole trader.  So you must have a company

Also, sole traders are not eligible for some grant programs.  The Research and Development Tax incentive in one such example.  So if you are thinking of accessing grant programs, you may be forced to be a company.

Your Staffing plans

A sole trader can employ staff, but you can become personally liable for a whole range of issues around such.  What if they get injured in the workplace?  What if they sue for unfair dismissal?  Having staff increases risks to you and you may want to be a company to reduce this risk

Taxation

In many cases there are tax advantages from being a company as compared to a sole trader.

Not only may you be legally able to split income but also in many cases, business can deduct more expenses than a sole trader can.

Summary

In my view there is no right or wrong answer here.  Circumstances may dictate that you need to operate as a company.  Other times it will be your choice and there is nothing wrong if you start out as a sole trader and switch to a company later (for example when you are about to employ your first staff member)

If you want more information on setting up a company ASIC has some great information.  Click here to learn more

If you want help to improve your your businesses chances thriving and surviving in these uncertain times contact me below.

Contact Wayne Wanders for your FREE Discovery Session to learn how your business can scale and grow profitably

To ensure Wayne helps your business specifically, the best approach Wayne has found is to have an obligation free Discovery Session with you.  In this session we will review your current business in a factual and objective manner, to better understand the challenges that you face.

At the end of this Discovery Session, you will have multiple ideas on how your business can scale and grow profitably.

Simply fill in the contact form below or email Wayne at wayne@aRealCFO.com.au or call Wayne on 0412 227 052 to organise one of these obligation free Discovery Sessions.

To get Wayne to help your business, simply use the contact form on the left to email Wayne or call him on 0412 227 052.

What’s an electric toothbrush got to do with my business  you say? Let me explain

Recently we had 2 months travelling and for space and to avoid hassles, we used used the old school toothbrush.  Now we are back home went back to the electric toothbrush.  And I realised I was putting half or a third of the toothpaste on the electric toothbrush than I was on the old school toothbrush.

So without changing my brushing regime I am using half to a third of the toothpaste.  So I need to buy less toothpaste.

If you are selling toothpaste your sales are starting to drop and it has nothing to do with you.  It all has to too with the electric toothbrush reducing demand for your toothpaste.

Hence why i ask if you thinking about the electric toothbrush of your business.

Want some free or subsidised Business Advice?

Reach out to me if you are based in NSW and would like some free or subsidised business advice.

If you want some help, contact me below.

Contact Wayne Wanders for your FREE Business Survival Session

At the end of this session, you will have multiple ideas on how your business can survive and thrive in these uncertain times.

Simply fill in the contact form below or email me at wayne@aRealCFO.com.au or call me on 0412 227 052 to organise one of these obligation free sessions.

Wayne Wanders, A Real CFO

wayne@aRealCFO.com.au

Today is Micro, Small and Medium Enterprises Day (MSME Day),  acknowledging the important contribution of small and family businesses in Australia.

Small and family business owners play a vital role to our society and local communities.  In terms of our economy, we can thank our Australian small businesses for:

• employing over 5 million people, that’s 42% of the private sector workforce, making small business Australia’s biggest employer.
• contributing over $438 billion to Gross Domestic Product (GDP), equivalent to over 33% of Australia’s total economy.
• employing the largest number of apprentices and trainees in Australia. Small businesses hired almost 288,000 apprentices and trainees, which represents 63% of Australia’s apprentices and trainees.

And the best way to support your small business today is by continuing to support them with your business.

If you want a confidential discussion on your business situation, contact me below

Contact Wayne Wanders for your FREE Business Survival Session

At the end of this session, you will have multiple ideas on how your business can survive and thrive in these uncertain times.

Simply fill in the contact form below or email me at wayne@aRealCFO.com.au or call me on 0412 227 052 to organise one of these obligation free sessions.

Wayne Wanders, A Real CFO

wayne@aRealCFO.com.au