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Merchant fees

Andrew Wright

Top Contributor
Not a fan of the introduction of merchant fees on Drop.com.au and from what I understand it's potentially in breach of ACCC guidelines...

Applying a surcharge to all types of card payment​

Can a business apply a surcharge to all available types of card payment? Yes. However, if the business does this while not accepting cash, the prices it displays for its goods or services should include the minimum surcharge payable.


There's no option to fund an account other than Credit Card. All prices displayed prior to invoicing do not include the "minimum surcharge payable" as far as I can see.

Just my 2c.

Andrew Wright

Top Contributor
Suggestions would be to add functionality for direct bank transfer to prefund accounts, or "include the minimum surcharge payable" in display pricing for Drop auctions, Registrations, Renewals and COR's.

Or remove the merchant fees...


Top Contributor
We absolutely support both pre-paid/prefunded accounts and we support the bank transfer method of payment.

In fact we have always supported these payment methods.

To pay by Bank Transfer please change your payment method on the invoices to "Bank Transfer". When you pay by bank transfer on a per invoice basis you need to include your invoice number as a reference.

To prefund your account please refer to this knowledge-base article or email support@drop.com.au, who can guide you through the process.

The mathematics of per transaction fees on single domain renewals is very inefficient, it is the $0.30 per transaction that annoys me the most. On an average $11 renewal the minimum transaction fee equates to 2.7% of the total cost. At our 9.75 price point it adds 3% on its own so with the 1.75% it adds up to 4.75% of the costs going to a the card companies.


Top Contributor
If you do want the convenience of a credit cards.

Domains on the $9.75 tier have a maximum effective renewal price of $10.22
As you add domains to single invoices the price drops quite quickly
1 = $10.22
2 = $10.07
3 = $10.02
4 = $10.00
5 = $ 9.98
6 = $ 9.97
7 = $ 9.96

9 = $ 9.95

13 = $ 9.94

21 = $ 9.93

As you can see here it does not take many domains to reach a plateau so if most of your renewals are in batches of at least 10 then you know your effective renewal costs will be approx. $9.95.

Andrew Wright

Top Contributor
To pay by Bank Transfer please change your payment method on the invoices to "Bank Transfer". When you pay by bank transfer on a per invoice basis you need to include your invoice number as a reference.
Thanks for your reply. Good to hear that you support direct bank transfers. I'm assuming that we would need to delete the credit card on file in order to select bank transfer on the invoices?


Top Contributor
For domain renewals you don't need to necessarily remove your card but if you are talking about daily drop catching then yes you need to remove your card.

Andrew Wright

Top Contributor
So to clarify, if you wish to avoid the Merchant Fee surcharge of $0.30 + 1.75%
  1. Delete your credit card in your drop.com.au account (under Billing > Payment Methods)​

  2. Pay your invoice using Direct Bank Transfer and include the invoice number​

Note that Registrations, Renewals and COR’s will not be processed until funds have been received. Drop catching will work, however, I'm assuming you won’t have control of domains until the invoice has been paid.

You can of course prefund your account using the process described at https://www.drop.com.au/my_account/index.php?rp=/knowledgebase/12/Our-Bank-Details.html

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