When you pay a business using certain payment types, for example a credit card, the business incurs costs for processing the payment.
These costs are usually paid by the business to its bank.
Some businesses include these costs in the price they charge for their goods or services. Others pass the costs on as a payment surcharge.
On 25 February 2016 the Competition and Consumer Amendment (Payment Surcharges) Act 2016 became law.
This law was introduced to stop businesses from charging payment surcharges that are excessive (for example from charging a customer more than what it costs the business to process the payment.)
A business is not required to impose a payment surcharge, but if it chooses to then it is only allowed to pass on to the customer the costs that the business was charged for accepting payment of that payment type.
The ban applies to all businesses, regardless of their size. For more information please refer to www.costlesspaymentsolutions.com
Choosing an EFTPOS Provider is a big decision for any business owner and finding the right provider is essential for good cash flow and taking secure, fast payments.
Every day, Australians make 6 million card transactions, which are handled by more than 760,000 merchants
Should you go with your bank? Or a new tech company? Or a local payments expert like Smartpay?
It feels overwhelming, but it does not need to be. All you need to do is focus on what is important to your business.
**What cards do they accept?
Contactless technologies and a cashless society is fast becoming the ‘norm’ in Australia, especially post-covid, so one of the first steps in choosing an EFTPOS provider is to examine what cards they accept.
EFTPOS terminals usually accept Visa and Mastercard as standard however, the terminal you choose should ideally be able to process other popular types of EFTPOS payments including tap-and-go options like Apple pay or Google wallet. Depending on your client base and business offering, you may also want an EFTPOS provider that accepts American Express, Alipay & WeChat Pay.
By ensuring your business offers a range of payment methods, the customer can choose to pay in a way that is convenient for them, thus increasing your level of reliability and customer service as a business.
**What is the fee structure and transaction volume?
For many small-business owners looking at EFTPOS providers or terminals, EFTPOS fees can be the deciding factor.
In most cases, EFTPOS providers will charge you per transaction based on card type. Premium credit cards usually attract reward points meaning higher costs for most SME , Club and Association merchants, with lower rates charged for domestic cards and higher rates for premium ones.
When it comes to fee structures and transaction volumes for EFTPOS service providers, there are a few key elements to look for. At Smartpay, I offer Zero Cost EFTPOS and Simple Flat Rate solutions, tailored to help SME , Club and Associations save on merchant fees and manage their cash flow.
Whether it’s saving money on your EFTPOS bill or knowing what your bill will be at the end of the month, I aim to help businesses, clubs and associations across Australia succeed with funds deposited into your business bank account the next business day.
**How reliable is their service?
It is important to stay connected and deliver excellent customer service ensuring minimal outages and downtime.
How frustrating is it, when you go to process the payment and you are unable to do due to an outage!!
To avoid these kinds of issues, you’ll want an EFTPOS network with a proven record of excellent connectivity and reliability.
Look for EFTPOS terminals that are built by offering multiple connection options such as 5G, Wi-Fi, broadband and a physical SIM card to stay connected no matter what the situation.
Smartpay offers a free SIM card with all terminal devices and Wi-Fi ensures portability for both in-store and offsite transactions (e.g. food trucks, table service, pop up stores or markets), taking payments from your customers anywhere, anytime.
**Is it easy to set up and use?
Ease of use is critical when considering any kind of payment technology and something to consider when choosing a provider.
There are specialist EFTPOS providers such as Smartpay (which I am an agent for), offering a device with an easy step by step setup process .
When the terminal arrives, just ‘plug in and pay’, and unlike some banks, there is no wait for a technician to connect you, keeping your business running with minimal downtime.
Not only is it important to look for something easy to install but also simple to use. This reduces time when training your staff and human error when calculating transaction costs.
**Does this EFTPOS service provider offer ongoing support?
As a business owner, you know things can go wrong.
When it comes to choosing an EFTPOS service provider, you should consider their customer service and support model.
Is this EFTPOS service provider a specialist who’s core focus is EFTPOS only or will I be lumped into a telephone queue with other business queries taking time away from my business?
Is the support team locally based and in-house or outsourced offshore and what hours are they available?
It is key to look for an EFTPOS service provider who offers you customer and technical support 24/7, 365 days per year to help if any problems arise.
At Smartpay, we’re just a call away and our in-house support team are here to help from when your business opens to when you close, every day.
From 1st September 2017, all businesses, clubs and associations Australia Wide that impose credit card payment surcharges on card transactions, need to comply with the Commonwealth Law that bans excessive payment surcharges.
Failure to comply with these laws, could result in an infringement notice issued by the ACCC with penalties up to $126,000.
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“It is killing my small business,” this is a comment I am receiving far too often from clients who are using either PayPal or Stripe for accepting payments online.
“So why use PayPal and/or Stripe?” I ask and the response is “I use what everyone else uses.”
This article is not intended to tarnish PayPal and or Stripe but to provide options for you to consider for your Online Payments.
What if you were guaranteed funds into your bank account within 2 business days?
And it does not matter which bank in Australia you bank with either!!
In this business environment of rising costs and diminishing returns, you can offer to pass on the transaction costs to your clients, therefore making this Hosted Payment Page (HPP)- provided By Payrix (formerly Integrapay) “fee free to your business.”
This is also a more time and cost effective option if you are accepting or wanting to accept payments over the telephone.
Having over 20 years banking experience in Australia, my business Costless Payment Solutions, was established with a desire to “give you back control” of the fees you have been paying to the banks for your Payment Solutions.
So, what would you do with the $5000, $10,000 or more than I will save you??
Are you continually charging a client the same or varying amounts?
You may think is there a more time saving and cost effective way to process this transaction!!
Well perhaps a Direct Debiting Solution may be your answer.
Direct Debit (DD) payment solution enables you to automate payments on a recurring and subscription basis from either a Bank Account or Credit Card.
The solution I provide even offers the option for you to “pass on” the transaction costs to your clients if you wish!!
Effectively making this solution, cost neutral to your business, club or association.
Using our direct debit payments solutions, you can process payments easily and securely to reduce manual effort, errors, and processing costs. Is daily reporting (Monday to Friday) of payments received and rejected important to you?
Well this is an additional service provided with this product.