Square fee increase hits Australian cafés, what are the alternatives?

Square's revised transaction fee structure is pushing more Australian café operators to evaluate alternatives. We compare the options.

Square's position as the default starting point for new Australian cafés is being tested in 2026 as operators scrutinise the true cost of its percentage-based transaction model. For low-volume venues the convenience is real, but as card revenue grows, the percentage fee compounds into a significant annual cost.

The maths that changes the decision

Square charges 1.6 percent per card-present transaction for new Australian signups. A café processing $15,000 a week in card revenue pays roughly $12,480 a year in transaction fees alone. From 1 October 2026, the RBA's surcharge ban means that fee can no longer be passed to customers, turning it into a direct cost the venue must absorb.

The alternatives

• Zero-commission POS such as Foodhub or Lightspeed, which charge a flat monthly fee instead of a percentage. Above roughly $4,500 a week in card revenue, these are typically cheaper than Square.
• Dedicated EFTPOS with least-cost routing such as Tyro, whose Tap and Save feature routes debit transactions through the cheapest network, saving an average 8.1 percent on eligible transactions.

The right answer depends on your volume. Use the calculator below to see your exact Square cost and what you would save by switching.