The End of the “Card Fee”

What Pilates Instructors Need to Know About Australia’s New Payment Rules

If you’ve been adding a 1.5% surcharge to your Pilates packs or casual classes to cover your bank fees, it’s time to prepare for a major change.

On 31 March 2026, the Reserve Bank of Australia (RBA) announced a total overhaul of how we pay for things. By 1 October 2026, the way you handle payments in your studio will look very different.

What is changing?

Currently, many studios add a small surcharge at the checkout to cover the cost of processing credit and debit cards. From 1 October 2026, this will be banned for all Visa, Mastercard, and eftpos transactions.

In short: The price your client sees on your website or Mindbody app must be the final price they pay. No more “plus 1.5% for credit cards” at the end of the transaction.

The Good News: Your bank fees are dropping

While you can no longer pass the fee directly to the client as a separate line item, the RBA is forcing banks to lower the costs they charge you.

• Credit Card Caps: The wholesale cost (interchange fee) for credit cards is dropping from 0.8% to 0.3%.
• Debit Card Caps: Fees for standard bank cards are also being slashed.
• Estimated Savings: The RBA expects these changes to save Australian small businesses nearly $1 billion a year in processing costs.

What does this mean for your studio?

You won’t lose the ability to recover your costs; you’ll just need to change how you do it.

1. Update Your Pricing: Between now and October 2026, look at your “all-in” costs. Instead of charging $30 + a 45c fee, you might choose to set your class price at $30.50.
2. Simplified Checkouts: For your clients, the experience becomes much smoother. They see one price and pay one price—no surprises at the “Pay Now” screen.
3. Check Your Merchant Plan: If you use a flat-rate provider (like Square or Stripe), keep an eye out for updates. They will be required to pass these lower RBA rates on to you.

What about Amex or Afterpay?

For now, the ban only applies to the big three: Visa, Mastercard, and eftpos. You can technically still surcharge for American Express or Buy Now, Pay Later (BNPL) services, though the RBA will be reviewing these specific rules in mid-2026.

The Bottom Line

The “surcharge” is moving from a hidden extra to being a standard part of your business overhead—just like your rent or insurance. Because the banks are being forced to charge you less, the “hit” to your profit margins should be significantly smaller than it is today.

How to calculate your new prices

To keep your studio’s net revenue the same after the surcharge ban, you’ll want to adjust your base price to include the cost you are currently passing on to clients.

Say your 10-pack price is $549, your new “all-in” price should be, depending on your current surcharge rate:

All-In Price Calculations

• If you currently charge 1%: Your new price would be $554.49.
• If you currently charge 1.4% (Common for Square/Stripe): Your new price would be $556.69.
• If you currently charge 1.5% (Standard Bank Rate): Your new price would be $557.24.
• If you currently charge 1.75%: Your new price would be $558.61.
• If you currently charge 2.0%: Your new price would be $559.98.

Strategy Tip for Your Studio

Rather than using the exact cents above, most studios find it cleaner to round to the nearest $5 or $10 increment.

For example, instead of charging $557.24, you might set the new price at $560. This looks more professional and can help account for other rising overheads (like electricity or insurance) at the same time.

Here is the additional section for your article, including a communication strategy and a template to help you transition your clients smoothly.

How to Communicate Price Changes to Your Clients

Moving from a base price plus a surcharge to a single “all-in” price can feel like a price hike to your clients, even if the total they pay stays roughly the same. Transparency and advanced notice are the best ways to maintain trust.

1. Focus on “Simplicity,” Not “Increases”
   Instead of saying you are raising prices, frame it as a shift toward “all-inclusive, transparent pricing.”The RBA’s goal is to make the “sticker price” the final price, which most consumers actually prefer.
2. Give Ample Notice
   Don’t wait until 1 October 2026 to change your software settings. Inform your clients 30–60 days in advance. This gives them time to adjust their personal budgets and ensures no one is surprised when their next autopay is slightly different.
3. Lead with Value
   If you haven’t adjusted your rates in over a year, this is also a natural time to account for other rising costs (like rent or insurance). Remind clients of the value they receive—small class sizes, your ongoing professional development, or new studio equipment.

📧 Draft Email Template: The “All-In” Pricing Update

Subject: Important Update: Simpler Pricing at [Studio Name]

Dear [Client Name],

We are committed to providing you with the highest quality Pilates experience and making your time at the studio as seamless as possible.

To align with new Australian payment regulations starting 1 October 2026, we are moving to a “What You See Is What You Pay” pricing model. This means we will no longer add separate credit card surcharges for Visa, Mastercard, or eftpos payments.

What is changing?
Historically, we applied a small surcharge to help cover bank fees. To simplify things, we are rolling these costs directly into our standard rates. From [Insert Date], the price listed on our website and in your app will be the final amount you pay—no hidden extras.

New Rates Effective [Date]:

• • • Casual Class:
    • 10-Class Pack:
    • Weekly Membership:

Why now?
These changes follow new Reserve Bank of Australia (RBA) reforms designed to make payments fairer and more transparent for everyone. We believe this “all-in” approach makes booking your classes easier and more predictable.

We are so grateful for your continued support and for being such a valued part of our [Studio Name] community. If you have any questions about your membership or these updates, please feel free to reach out to me directly.

See you on the mat soon!

Warmly,

[Your Name]
[Studio Name]