The introduction of credit card surcharge bans for businesses has led to many small businesses contemplating re-introducing cash only payments or encouraging more cash purchases through incentives. We explore some of the pros and cons of taking cash payments in your business.
As of 1 October 2026, businesses are no longer able to pass on credit card surcharges to customers for Visa, Mastercard or EFTPOS payments. While there are several strategies businesses can use to navigate the ban, some may be contemplating returning to a more cash-based system to limit additional costs to their business.
If you are planning to increase your cash transactions, we’ve pulled together some helpful reminders to make sure your business is cash ready.
Compare the costs of accepting cash
Customers paying in cash can help you avoid absorbing card surcharges, but it’s important to remember handling cash involves staff time and other costs.
You’ll need to make sure you have the correct equipment such as a cash register or a point of sale (POS) system that handles cash payments. Time will need to be dedicated to counting and reconciling cash and floats, preparing deposits, travelling to the bank, obtaining change, and checking discrepancies. Make sure you understand the total cost of accepting both cash and card payments to help you choose the payment options that suit your business.
Keep your cash and staff safe
If you’re planning to accept more cash, review your cash handling procedures to help keep your staff and takings safe.
Keeping more cash on site can increase the risk of theft or robbery. Review your security alarms, staffing levels and the amount of cash you keep on your premises, particularly at opening and closing times or when staff work alone.
Give your team clear procedures for handling cash, making change, storing cash during and outside trading hours, limiting amounts kept in the cash register and managing access to your safe. Include steps for counting end of shift and day totals, checking for counterfeit notes, processing refunds, checking discrepancies, and reconciling daily takings to help reduce internal and external theft.
Where possible, have two staff members present when opening and closing your premises and collecting cash from registers, with one keeping watch during collection.
Plan how you’ll bank your takings
Choose a banking arrangement that suits the amount of cash your business handles, with clear procedures for making deposits.
Decide who will take cash to the bank, how often deposits are needed and whether staff can safely transport the amounts involved. If you handle larger amounts, consider using a professional cash collection or security service.
When making deposits, vary the times and routes to avoid a predictable banking routine.
Keep records of your cash sales
If you’ve not previously accepted cash, you’ll need to keep accurate records of all cash sales to help you stay on top of your bookkeeping and understand your business income.
Record each sale through your POS system or cash book, keep supporting records and regularly check your recorded sales against cash takings and bank deposits. Your bookkeeper or accountant can help you set up a process that suits your business and meets ATO reporting requirements.
Let your customers know
Helping customers understand your payment options can make a transition easier if you’re introducing or incentivising cash payments. If you’re encouraging cash only purchases, display clear signs at your entrance and point of sale so customers can be prepared.
In WA, businesses can generally choose which payment methods they accept. You should make your payment conditions clear before customers make a purchase.
Tip: Since 1 January 2026, certain supermarkets and fuel retailers must give customers a reasonable opportunity to pay cash for in-person purchases of $500 or less between 7 am and 9 pm. Understand the rules of accepting cash in more detail by visiting the Australian Competition & Consumer Commission (ACCC) website.
More information
Read more about the ban on surcharges for debit, credit, and prepaid card payments.
Check our 8 tips to help you spot fake banknotes
If you’d like to discuss pricing strategies or an issue facing your business, book an appointment with our free business advisory service
You might also like to try our range of tools for your business, including cashflow forecasts and cost of goods sold calculator or explore our range of low cost financial management workshops.
