Credit Card Policy - Additional Information

Frequently asked questions

  1. Has a transition period been factored in?

A transition period has been built into the policy. Entities are expected to have processes supporting the policy in place by 1 January 2015.

  1. What is an eligible payment?

An eligible payment is a payment with a value less than $10,000 (inclusive of GST and merchant service fees) due to a supplier that is not associated with a multiple-payment contract, or standing offer arrangement.

Eligible payments do not include payments due where the entity has automated invoice payment processes that pay suppliers within five business days of receiving a correctly rendered invoice.

  1. Can my entity choose a higher threshold or is the policy limited to purchases under $10,000?

The policy applies to purchases valued less than $10,000.  However, an entity may wish to extend the use of payment cards above $10,000 depending on the business needs of the entity.

  1. What should I do if the supplier refuses to be paid by card?

The policy only requires suppliers to be provided an opportunity to request payment via a payment card for amounts below $10,000. The policy does not require a supplier to accept payment via a payment card.

  1. What is a reasonable merchant fee?

Merchant service fees may be passed on by a supplier. Merchant service fees are required to be limited to ‘reasonable cost’ for accepting the payment which may vary on the card used.  Further guidance on merchant service fees is available from the Reserve Bank of Australia in Guidance Note: Interpretation of the Surcharging Standards (

  1. Does each payment card need to have the same limit?

The policy does not specify limits for payment cards.

  1. Does this policy apply to entitlement payments to Senators and Members and their staff?

The payment card policy applies to procurements subject to the Commonwealth Procurement Rules (CPRs). The payment card policy should apply when employees of non-corporate Commonwealth entities are procuring on behalf of Senators, Members and their staff where practicable. 

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Last updated: 10 December 2015