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 as well as on online payment services such as PayPal.
The merchant fee is a percentage of the total payment amount. The percentage depends on which payment method is used. Card schemes such as MasterCard, Visa, American Express, Diners Club or UnionPay International, or online payment services such as PayPal.
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 and Diners Club
When you make a payment using an American Express or Diners Club card, the merchant fee recovered is up to 1.54% of the total amount payable.
UnionPay International (UPI)
When you make a credit or debit payment using a UPI card, the merchant fee recovered is up to 1.76% of the total amount payable.
When you make a payment through PayPal, the merchant fee recovered is up to 1.21% 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)
- the total amount that will be charged to your credit card.