What are merchant service fees?

Merchant service fees (MSF) are charged for certain types of card transactions processed through your merchant facility. A percentage of each sale is paid to Westpac for the processing of your monthly transactions. 

Your merchant service fee will vary based on several factors, including what type of business you have, how many transactions you process, and what card types you accept.  

What makes up a merchant service fee?

Merchant service fees comprise of Interchange and Acquiring fees

Compare payment types.

Which payment types and methods of payment incur merchant service fees?

Payment types that incur a Merchant Service Fee

Pricing options.


Provides you with one fee applied to all transactions of the same type. The merchant service fee you pay is dependent on whether the transaction is contactless or non-contactless and is a fixed rate rather than a bundled rate (that fluctuates with your transactions). We also provide you with a breakdown of your transaction fees by type. This means greater visibility over the fee you pay for contactless debit, contactless credit and non-contactless transactions.

Example of a blended pricing plan:
I have a mobile coffee business, I need to take payments on the go. Westpac's Get Paid solution has a fixed pricing plan which works well for me. I can take payments anywhere and I have certainty of the merchant rate.


Interchange Plus (unbundled)

You'll be charged two separate rates on each transaction. A rate for the interchange (issuer) charges, and a separate rate for acquiring fees.

Example of an Interchange Plus (unbundled) pricing plan:
I have a mature business operating in 20 locations throughout the country, I like the transparency and insight I get through an Interchange Plus fee, such as the card types and my customers' preferred method of payment.

Domestic interchange fees.

Interchange is the fee that the cardholder's bank (the "Issuer") charges for the provision of card payment services, this can include card holder services, reward schemes, processing costs and fraud protection. The fee is charged to the financial institution that processes card transactions on behalf of a merchant (the "acquirer"). This is a variable fee set by the card schemes.

Things you need to know.

The information on this page is a guide only. Participation in a Westpac Merchant Credit Card Facility Agreement is subject to Westpac's approval. Westpac's current credit criteria apply. Terms, fees and charges apply to Westpac products and services.

Mastercard is a registered trademark and the circles design is a trademark of Mastercard International Incorporated.