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Customer surcharging for online payments

Online invoice payments offer businesses the option to pass on the surcharge associated with online payments to their customers. That means that the surcharge for card payments can be added to a customer invoice.

When you pass on the surcharge to your customers, you are adding the 1.8% surcharge for card payments (Amex, VISA, Mastercard, Apple Pay, Google PayTM or PayPal) to their invoice. BPAY is excluded from this, so you will continue to be charged for payments received via BPAY.

How does it work?

If you're using online invoice payments, you can turn on customer surcharging. This will apply to all customers who make payments by clicking Pay now in their online invoices (excluding BPAY payments).

When customer surcharging is turned on, the 1.8% surcharge can be passed on to your customers (unless they pay via BPAY). When the customer clicks Pay now on their online invoice, they'll see the breakdown of invoice amount + surcharge = total amount.

When the customer completes their payment, the surcharge (and the 25c transaction fee) is deducted from their payment before the balance is deposited into your bank account. Learn more about fees and charges for online payments.

GST on surcharges

If there's GST on a customer's invoice and you pass on the 1.8% card surcharge, there will also be GST on the surcharge (the surcharge will be GST inclusive). If there's no GST on the invoice, there will be no GST on the surcharge.

This means the customer will pay the surcharge GST and you'll collect it when the payment is deposited into your bank account. This GST will be treated the same as any other GST collected by your business.

Turn surcharging on or off for all invoices

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  1. Click the settings menu (⚙️) and choose Sales settings.

  2. Click the Payments tab.

  3. Click Edit preferences.

    Edit preferences

  4. Select the option Your customers pay the surcharge:

    Your customers pay the surcharge

  5. Click Save. Now, you just need to create and send invoices like you normally would. See Creating invoices and Emailing, printing or downloading invoices if you need a refresher.

    Do you create recurring invoices? The option to pass on customer surcharging for all invoices isn't available yet for invoices created from recurring transactions. Instead you'll have to enable this before you send each invoice, by opening it and selecting the Apply Surcharge option. See 'To turn surcharging on or off for a single invoice', below.

To turn surcharging off for all invoices, repeat these steps and select the option Your business pays the surcharge.

Turn surcharging on or off for a single invoice

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Once you've turned on customer surcharging (see the steps above), you can choose to turn surcharging on or off for individual invoices.

  1. Create the invoice as you normally would.

  2. Select or deselect the Surcharge cards and wallets option.

    If you change this setting on an invoice you've already sent, you'll need to save your changes and re-send the invoice.

  3. Complete the invoice as normal and send it to your customer.

How the surcharging looks to your customers

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The customer will receive the invoice as they normally would. When they click on Pay Now, they'll be asked to select their payment method.

Select payment method screen

If a customer chooses to pay via BPAY, they will not incur a surcharge fee. However, you will continue to be charged any fees related to payments received via BPAY.

When they select Credit or Debit Card, they'll be asked to enter their card details. The amount owing, the surcharge fee, and total amount due (invoice and surcharge fee) will be listed as shown below.

Credit or debit card option showing the surcharge fee and total amount

When they click Submit, the payment will be processed.

PayPal users

If you've turned on customer surcharging for PayPal, the surcharge will appear as ‘Handling’ in the payer's PayPal wallet.

Handling the payment

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When a customer makes a payment, the details will automatically be entered into your MYOB business, and the invoice will be closed off. We'll also send you an email with a detailed break down of the payments.

The payments, surcharges and fees will be recorded under the ledger accounts you've specified in your online payments settings (see the steps above).

Learn all about what happens when a customer pays you.

Google Pay is a trademark of Google LLC.

FAQs

What are the fees and charges for online payments?

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  • Any of your invoices paid using a credit card (AMEX, Visa, Mastercard, Apple Pay, Google PayTM or PayPal); via our online payment service, will surcharge the payer a 1.8% fee (incl. GST)

  • All fees related to invoices paid using BPAY; via our online payment service, will be charged to your business and not the payer

  • The surcharge of 1.8% will be applied to the invoice total, with the surcharge amount settled along with the invoice amount into your bank account. It will later be debited from your account during your monthly MYOB billing cycle.

  • The $0.25 per transaction fee will only be charged to your business and not the payer.

Where do I find the surcharge amounts?

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You'll see individual surcharge amounts in your transactions list:

  1. Go to Banking and choose Find transactions.

  2. Click the Transactions tab. A list of transactions appear.

  3. The surcharge amount will have the same Reference no as the received payment, but with an additional 'S' at the end.

    List of surcharge amounts in transactions list



How do I change the bank account my fees and charges are debited from?

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Only the Owner or an Online admin user can change the bank details. Tell me more about user access.

  1. Click the settings menu (⚙️) and choose Sales settings.

  2. Click the Payments tab.

  3. In the Invoice payment options section, click Edit preferences.

    Edit preferences

  4. Click Edit for Bank account for direct debit of fees to change the business bank account that will be debited for fees and charges.

    1. Follow the prompts to update your account details.

    2. Click Next and complete your Direct Debit Request details.

    3. Click I agree to save.

      Fee account option highlighted

  5. If applicable, you can change the Ledger account to record fees and charges.

    Surcharging options highlighted

  6. When you're done, click Save.

You'll receive an email within 48 hours confirming the changes you made.