Are you tired of transaction fees nibbling away at your bottom line? No-cost EFTPOS promises a solution, but is it the right one? Before signing on the dotted line, let's explore what this model really means for your business.
Now, many of our customers are switching to No-Cost EFTPOS, partly because we have negotiated some really good deals for our clients and partly because many are tired of watching transaction fees eat away at their hard-earned profits. But often washing your hands of the problem is not the best move.
No-cost EFTPOS might seem like the answer to your prayers. But before you sign up, let's look at this payment model so you can make the best decision for your bottom line.
What is No-Cost EFTPOS, Really?
Think of it as a cost shuffle. In theory, it's marketed as that instead of you shouldering the fees that come with accepting card payments; your customers pay the small surcharge on each transaction. I would say the customer quickly knows the fees and does not care who charges them; they put the amount on you, and despite the hype, the customers do not care as it's so small; they do care.
The Upside: Real Benefits
- Say Goodbye to Hefty Fees: No more upfront payments for your EFTPOS machine or those pesky monthly charges. This can be a massive relief for cash-strapped businesses.
- Flexible and Easy: Setup and calculations are a breeze.
- Pass on the burden and responsibility: The responsibility and some of the legal dangers for these fees are passed onto the EFTPOS provider!
Hold On, Not So Fast! Considerations to Keep in Mind
- Customer Experience: Be prepared to explain the surcharge clearly, especially on smaller purchases. Nobody likes surprises at the checkout.
- Limited Control: You might lose the ability to use fancy features like dynamic surcharging, where the fee changes based on card type. The odds are your EFTPOS fees will be higher.
- The Fine Print: Many fees you can claim are not included, e.g., setup charges and chargebacks.
- Lack of control: Currently, you control the fees; under No-Cost, you do not.
Is No-Cost EFTPOS Right for YOU?
Ask yourself these key questions:
- Transaction Volume: Do you take TONS of card payments each month? Lower volumes make No-Cost EFTPOS more attractive.
- Price Control Cravings: Do you want to fine-tune how you charge customers? Traditional plans give you more options. A very successful marketing strategy is to offer all sales over $50 with no fees. Customers will often increase their basket size to get over this amount.
- Tech Tolerance: Are you ready to handle extra customer questions about the surcharge?
The Final Word: It's All About the Fit
No-cost EFTPOS is great for some businesses, but it's not a one-size-fits-all solution. Do your homework, talk to us, and compare your total costs with both models. That's the savvy way to find the system that lets you focus on what you do best—running your awesome small business!
