B2Bpay urges firms to rethink card payments before ban

Australian business payments platform B2Bpay has urged businesses to rethink how they make payments before the Reserve Bank of Australia's surcharge ban takes effect, warning the change could reduce the value of credit card rewards programmes used by business owners.

From 1 October, the RBA will ban card surcharging for eftpos, Visa and Mastercard transactions. B2Bpay said the move follows a cut in the interchange fee cap on consumer credit cards from 0.8 per cent to 0.3 per cent, which it said would remove about $660 million a year in revenue from banks.

That revenue has long helped fund credit card rewards schemes, including points, frequent flyer offers and premium card benefits. B2Bpay said major banks had already started responding by cutting points earn rates, increasing annual fees and withdrawing some premium cards.

For business owners, the issue is less about consumer checkout charges and more about how they use cards to manage working capital and collect rewards on routine spending. Many businesses use credit cards to smooth cash flow, take advantage of interest-free periods and generate points that can offset travel or other operating costs.

B2Bpay argued that the regulatory change means businesses should focus less on a card's earn rate and more on increasing the share of spending that can be put on a card in the first place. Many large outgoings, including supplier invoices, rent, insurance and tax obligations, have traditionally sat outside card networks because recipients do not accept card payments directly.

B2Bpay's model is built around that gap. Its platform allows a business to use a credit card to pay an expense while the recipient receives the funds through their preferred payment method, including bank transfer.

Changing economics

B2Bpay said the economics of card rewards are shifting quickly. As issuers lose interchange income, businesses that rely on rewards programmes may find the return on card spending falls even if they continue to charge the same level of monthly expenses.

That has increased attention on payment intermediaries that let companies route a broader range of bills through a card. B2Bpay said this approach could help businesses preserve some value from rewards even as banks trim the offers attached to their cards.

For example, B2Bpay said a business that pays a AUD $20,000 supplier invoice by bank transfer receives no card rewards. If the same payment is routed through its platform, the business may receive points from the card issuer as well as rewards from B2Bpay itself.

The company also said that if a business then pays off its card balance through the platform, it may be able to collect another layer of points. That practice, which B2Bpay described as "double dipping" or "triple dipping", underpins its argument that businesses should rethink how they route regular payments rather than focus only on changes in bank card terms.

B2Bpay integrates with accounting systems including Xero, MYOB and QuickBooks. It said the platform can be used for a range of expenses, from government bills and tax payments to supplier invoices.

Business response

The debate around the surcharge ban has largely centred on consumers, who will no longer face extra card charges at the till for covered payment types. For businesses, however, the question is whether the loss of surcharge revenue and lower interchange fees will weaken the incentives that have shaped card use over the past decade.

Some owners have treated rewards as a secondary benefit, while others have built payment habits around them. In sectors with high monthly outgoings, any reduction in points earned per dollar can have a noticeable effect over a year.

Jane Grant, chief of B2Bpay, said the changes would require businesses to reassess that strategy.

"The surcharge ban is a meaningful step toward a simpler and fairer payments system, and it is a clear win for consumers," Grant said.

But the fee changes were altering the structure that has supported rewards programmes for years, she said.

"For those who rely on these programs, awareness is key. The opportunity to earn has not disappeared, but it is shifting to those who know where to look."

Grant said businesses should look at payments that have not usually been eligible for card rewards.

"With B2Bpay, those payments can now work harder for the business," she said.

"You can use your credit card to manage cash flow more effectively, taking advantage of interest-free periods, while also earning points twice: once from your card provider and again through B2Bpay."

Grant said businesses reviewing their finance processes faced a broader adjustment.

"The rules are changing. The opportunity to earn has not disappeared, but it is shifting to those who know where to look."