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Merchant fee recovery explained

Financial institutions charge the government merchant fees whenever they provide a payment service.

The NSW Treasury requires all NSW government agencies to recover these additional costs. This process is known as "merchant fee recovery".

Service NSW may recover merchant fees plus GST on credit and debit card payments.

Fee rates

For credit and debit card payments, the merchant fee is a percentage of the total payment amount. The percentage depends on whether the card is a MasterCard, Visa or American Express. The merchant fee including GST will be added on top of the total amount you need to pay. 

MasterCard and Visa

When you make a credit or debit payment using a MasterCard or Visa card, the merchant fee recovered is up to 0.44% of the total amount payable.

American Express

When you make a payment using an American Express card, the merchant fee recovered is up to 1.54% of the total amount payable.

What you'll be charged

Before you confirm your payment details, you will be shown dollar amounts for each of the following:

  • the cost of your transaction
  • if it's a taxable good or service, the GST amount that applies to the cost of your transaction
  • the merchant fee amount (inclusive of GST), and
  • the total amount that will be charged to your credit card.
Source url: https://www.service.nsw.gov.au/merchant-fees