What is drip pricing?
- By Book Keeping Pros
- Sources checked 15 Oct 2026
Definition
Drip pricing is the practice of showing a headline price at the start of an online purchase, then adding further fees and charges, such as booking or service fees, at later steps of the checkout. The customer only learns the full amount near the end, after deciding to buy at what looked like a lower price.
Drip pricing is a question of how prices are shown to customers, but it touches the books too. If a business adds fees to its prices, its sales records should show each fee as well as the base price, so the totals customers were charged can be checked against the prices they were shown.
It matters on the buying side as well. When a business buys online, the amount that belongs in the books is the total actually paid, including every fee added along the way, and that is the amount the receipt or invoice for the purchase needs to support.
In Australia
business.gov.au's glossary describes drip pricing as showing one price when an online purchase begins and then adding, or dripping, further fees and charges as the purchase goes on. It says every fee and charge has to be shown when the online shopping process begins, rather than being brought in step by step, and directs readers to the ACCC website for more on drip pricing.
Its page on the Australian Consumer Law says businesses are required to tell customers the truth about what they sell, and that contracts need to be plain to read, without unfair terms or hidden fees. It names the ACCC as the regulator for widespread issues under that law, with state and territory consumer protection agencies handling individual complaints.
Its pricing guide says prices need to be clear, accurate and not misleading, and links displaying prices correctly to following the Australian Consumer Law.
Worked example
| Checkout step | Item | Amount (AUD) |
|---|---|---|
| Search results | Price shown | 120.00 |
| Choose a time | Booking fee added | 8.50 |
| Payment page | Service fee added | 6.00 |
| Final total | 134.50 |
Illustrative example only: these rows show the method and are not sourced data.
Common mistakes
- Showing a price online that leaves out fees every customer has to pay.
- Recording fees and the base price as one amount, so nobody can see what customers were charged in fees.
- Entering an online purchase at the advertised price instead of the total actually paid.
Related terms
Related service
Small business bookkeeping
Your books kept current, every month.
Sources
- Key financial terms
business.gov.au, Australian Government. Current at 15 October 2026, released 9 July 2024. Checked 15 October 2026.
© Commonwealth of Australia 2020, licensed under CC BY 3.0 AU. Licence: CC BY 3.0 AU.
- Australian Consumer Law and your business
business.gov.au, Australian Government. Current at 16 October 2026, released 27 May 2025. Checked 16 October 2026.
© Commonwealth of Australia 2020, licensed under CC BY 3.0 AU. Licence: CC BY 3.0 AU.
- Choose a pricing strategy
business.gov.au, Australian Government. Current at 16 October 2026, released 1 October 2026. Checked 16 October 2026.
© Commonwealth of Australia 2020, licensed under CC BY 3.0 AU. Licence: CC BY 3.0 AU.