People often confuse EFTPOS and POS systems. This is mainly because salespeople try to confuse the issue by claiming that EFTPOS is POS. It is not.

What is EFTPOS

The bank system links the proposed transaction from your shop to the banking system. It usually operates through a terminal that allows customers to use their cards to complete an electronic payment using debit or credit cards.

The main features of EFTPOS terminals are:

• Secure payment processing
• Support for multiple payment methods (debit, credit, contactless)
• Encryption of payment data

What is a POS System?

It is the hardware and software used to run a shop.

Key features of POS systems include:

• Sales management and transaction processing
• Inventory tracking and management
• Customer relationship management (CRM)
• Reporting and analytics

How EFTPOS and POS Work Together

In modern retail POS Systems like ours, the EFTPOS terminals are often integrated into the Point of Sale Software. Here's how they typically work together:

1. The POS system calculates the total sale amount.
2. This amount is automatically sent to the EFTPOS terminal if integrated.
3. The customer completes the payment on the EFTPOS terminal.
4. The POS system gets a response from the EFTPOS terminal that the transaction has gone through.
5. The POS System records the completed transaction.

This integration offers several benefits:

• Reduced manual data entry, minimising errors
• Faster checkout times, improving customer experience
• Simplified end-of-day reconciliation
• Real-time sales data for better business insights

Security Considerations

Both EFTPOS and POS systems must prioritise security to protect sensitive customer data. Integrating them makes them more secure.

Choosing the Right Solution for Your Business

A standalone EFTPOS terminal vs an integrated POS system

Faster

It's much faster, as the information exchange between the EFTPOS unit and the POS System is automatic.

Secure

Integrated systems mean that the merchant has an extra layer of security, as the POS Software and the EFTPOS are linked. The controls that enter the EFTPOS pass through the POS software checks first.

Fewer mistakes

People are in a hurry, and let's face it: almost everyone in retail is busy, so they make mistakes. POS Software makes fewer mistakes. For example, a person often misreads a one and a 7. Instead of $70 into the EFTPOS unit, they punch in $10. The retailer loses $60. Sometimes, this behaviour is not accidental; store attendants give discounts to relatives and friends.

Popular EFTPOS and POS Solutions in Australia

Our users can have various EFTPOS leading providers in the Australian market.

Conclusion

While EFTPOS terminals are for the payment processing only, an integrated POS system offers a comprehensive solution for managing your entire retail operation.

FAQs

Q: Can I use an EFTPOS terminal without a POS system?

A: Standalone EFTPOS terminals can process payments independently but won't offer inventory tracking or sales reporting features.

Q: How much does an integrated EFTPOS extra cost?

A: Costs vary depending on the EFTPOS providers. We do not charge for the integration.

Q: What's the difference between contactless payments via EFTPOS vs credit cards?

A: EFTPOS transactions through savings/cheque accounts usually have lower fees than credit card transactions processed via Visa or Mastercard networks.

Q: Are there any security risks in integrating EFTPOS with POS systems?

A: Overall integration will enhance security by reducing manual data entry; however, some intelligence is still needed to reduce the risks.

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

Many of my customers use Smartpay EFTPOS, which aims to reduce EFTPOS fees by transferring costs from them to their customers. 

I confess we have been wary of these systems.  So have others, as you can read here.

Some issues

Government regulatory challenges

The Reserve Bank of Australia (RBA) has discussed restricting such fee payment providers. That could significantly impact Smartpay's revenue model.

Fees

Their fees seemed high compared to other EFTPOS suppliers, and we were dubious of the claim that customers would not care about these higher fees. Your customers are not silly.

Ransomware attack

They were affected quite dramatically; this is no minor issue if you deal with EFTPOS.

However, the immediate issue with them has been some recent market developments.

Market Position and Financial Performance

It is not just us who have been wary. Despite Smartpay's strong financial performance, its share price has dropped from $1.42 about a year ago to about $0.55 recently. This decline reflects the market's uncertainty about the company's prospects.

Well, now Smartpay has received a takeover bid from Tyro Payments. Tyro has offered to buy 100% of Smartpay's shares for 91 cents a share, subject to due diligence, promptly driving the share price up to 78 cents. The difference between 78 cents and 91 cents is telling, probably due to the uncertainty of due diligence.

Then, another international buyer appeared to make an offer, and what is stunning is that, with this news, Smart Pay's share price fell. Figure that out!

Implications for Retailers

If Smartpay is acquired, retailers might face changes in their EFTPOS services. While existing contracts may be initially honoured, new terms or conditions will be introduced. These changes could include adjustments to fees, surcharging policies, or even the functionality of the EFTPOS terminals. Tyro systems are very different from SmartPay.

Actionable Recommendations for Retailers

1. Stay informed about Smartpay's developments and industry news.
2. If changes occur, you must review your contracts.
3. Prepare for potential fee structure changes by assessing their impact on your business.
4. I would wait until we know what is happening.
    

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

If you want to compare your current EFTPOS/Credit Card providers with others, there are a few simple steps to do:

Before you begin

I suggest you ask the following:

Speed of Fund Transfers

How quickly does the provider transfer funds to your bank account? This is very important if your main account isn't with one of the big banks. Delays can disrupt cash flow, especially during busy periods. It's aggravating to collect out-of-fund messages from the bank if you have the funds in another bank and are getting them into the required bank.

Service Quality

Poor service from a payment provider can cause unnecessary stress. You can always do an online search on customer reviews for the provider you are looking at. How many stars do they have? I have seen people pull out EFTPOS systems because of bad quality.

Contact terms

You can get better rates if you are willing to commit for a decent period.

Also, as you know, a contract does not lock the provider into terms. I have often seen my clients get a letter from the providers using the rate after a year in a three-year contract, and they are switching my customers to a different rate.

Transparency in Quotes

Please always ask for the total cost in writing for provider quotes. Some providers present attractive rates but do not or underestimate items that add up over time. Could you make sure this is in writing? If you get into a dispute, arguing over one figure in a total cost is much easier than a rate sheet.

Once you get this total cost, you still need to check. It's easy after you have done a few, like me.

Key Information You'll Need to Calculate EFTPOS Costs

To calculate your EFTPOS costs accurately, gather the following details:

Card Mix

You should get this from your existing EFTPOS statements or your total reports. You need a breakdown of transactions by card type: debit, credit (generally VISA and MasterCard), and international cards, e.g. AMEX.

• Monthly transaction volume (number of sales)
• Average transaction value

What the EFTPOS/Credit provider wants is

• Monthly transaction total by type
• Average transaction value

If this data isn't readily available, estimate based on past sales and your experience.

Fee Structure

• Transaction fees: Fixed (e.g., 25¢ per transaction) or percentage-based (e.g., 1% of the transaction value)
• Terminal rental fees: Monthly charges (e.g., $30/month) or upfront purchase cost
• Other fixed fees, account fees, gateway fees, etc.

Additional Costs

• Setup fees for new EFTPOS machines
• Chargeback fees (typically $15–$35 per dispute)
• Stationery costs (e.g., receipt rolls)
• Equipment replacement or repair fees. Stolen EFTPOS units were a problem for our clients a short time ago.

Step-by-Step Calculation

Once you've gathered the necessary information, follow these steps:

Calculate Debit Card Fees

Debit card fees are often lower than credit card fees. Use one of these formulas:

• Fixed fee: {Monthly Transactions} x {Debit Rate}
• Percentage fee: Monthly Transactions} x {Average Transaction Value} x {Debit Rate}

Example:

• 1,000 debit transactions/month
• Average transaction value = $50
• Debit rate = .8%

Calculation: 1,000 x $50 x .8%

Calculate Credit Card Fees

Use the same formula as above but with the credit card rate, which is usually more.

Example:

• 300 credit transactions/month
• Average transaction value = $50
• Credit rate = 1.2%

Calculation: 300 x $50 x 1.2%

Calculate International Card Fees

International cards incur higher rates due to additional interchange and scheme fees, but the above formula is the same.

Add Fixed Costs

Include monthly terminal rentals and other fixed expenses like stationery or compliance fees.

Example:

• Terminal rental = $27.50/month
• Receipt rolls = $26/month

Total fixed costs: 27.50 + 26

Factor in Variable Costs

Some costs, like chargebacks, are unpredictable; I use a yearly estimate and calculate a monthly average. One point that helps here is having a camera recording the EFTPOS unit.

Example:
If I go about one chargeback a month on average, it might be
Chargeback fee estimate = $30/month

Here is a sample EFTPOS sheet, I made up.

It adds up.

Tips for Managing EFTPOS Costs

Negotiate Rates

Many providers will offer better rates if you commit to a longer-term contract or demonstrate high transaction volumes.

Check Rates

For some reason, and I do not know why, different suppliers quoting the same rate somehow get different figures. When I was analysing some figures for a customer, I found that 1% from CBA and 1% from TYRO gave different results. If this happens to you, I suggest you make some enquiries. 

Push the payment methods with cheaper fees.

Do not forget that Cash has many advantages here.

Integration is great

But it does often cost extra

Use Least-Cost Routing

If it's not in effect, please put it on immediately. Check here for details.

Review Statements Regularly

Check for hidden charges or errors in billing.

Final Thoughts

Understanding your EFTPOS/Credit costs is needed to run an efficient business.

Yesterday, I met with a bank representative about securing better EFTPOS rates for our clients. The subject of least cost routing (LCR) came up after I pointed out that our analysis of EFTPOS fees showed a big difference in fees between banks even though they had similar rates. I discovered that many merchants lost thousands of dollars a year last year in fees because of ignorance.

To understand why these unnecessary costs occur and how to avoid them, we must first understand the mechanics behind payment processing and the critical role of least-cost routing.

Least Cost Routing (LCR)

Least Cost Routing (LCR) is a payment processing feature that can significantly reduce your fees when processing debit/credit card payments.

When a customer taps their card, the payment can go in as an EFTPOS or credit card.

Now, some banks will often do a deal that both go through as 1%. Generally, this costs you more. So it's no wonder they offer it.

What is smarter is to have EFTPOS charged as a flat fee per transaction, say, $0.15-$0.30. Let us work here with 20 cents for this blog post. Visa/Mastercard generally go in as percentage-based fees, e.g., 0.8%-2% of the transaction value, say 1.2%

The exact charges will vary but generally depend on your average transaction value and the amount you send through the system.

Payment processing costs

Let's say I come into your shop, buy a $10 item, and tap. Your cost if it is EPTPOS is 20 cents. Your cost if it's Visa/Mastercard is 12 cents. It is better for you that it goes through as a Visa/Mastercard.

Now, if I brought a $50 item, your cost if it is EPTPOS is 20 cents. Your cost if it's Visa/Mastercard is 60 cents. It is better for you that it goes through as an EFTPOS here.

The EFTPOS flat fee model is usually cheaper for transactions, typically above $30-$40.

Without Least Cost Routing enabled, your payment terminal automatically processes contactless "tap-and-go" payments through Visa or Mastercard networks. If you have it enabled, you can direct them to the cheapest system.

Now, here's the kicker: There are two different types of Least-Cost routing, LCR and MCR, and although banks tend to call them the same, they are not.

LCR vs. MCR: The Critical Distinction

Let's start by untangling the often misunderstood terms.

With LCR enabled

• Each transaction in real-time is analysed
• Fees are automatically calculated for each route.
• The payment is routed through the network that will cost you the least

The key advantage? There's no manual intervention required.

Merchant Choice Routing (MCR)

With MCR, you, as the merchant, have the choice of which payment network to route a transaction. You must understand the costs and select the route manually each time.

Reasons for the Financial Impact

Ignorance

Many merchants remain utterly unaware that LCR/MCR exists. Banks do not automatically set them up; you need to ask.

Misleading Marketing

Some payment providers market the MCR solutions as LCR, leading merchants to believe they automatically get the best rates when they do not.

The Complexity Conundrum

It's another thing to remember in retail when doing a transaction.

Set It and Forget It Fallacy

Merchants often assume that everything is fine once MCR is enabled. They don't realise that they must monitor and train their staff.

The Staff Apathy Factor

This is huge. Even if the owner understands the importance of the payment, if the staff member processing the payment doesn't understand or care about the difference, they will route the transaction through the most convenient (often most expensive) network.

The Hidden Cost of Inaction

The cumulative impact of improper routing is staggering:

• A cafe processing 200 daily transactions could lose $15-20 per day, or over $5,000 annually.
• A retail store with an average transaction of $80 could save up to 1% on each sale through proper routing—potentially thousands of dollars per year.
• For a business with tight margins, these "invisible" costs can be the difference between profitability and loss.

Taking Control: How to Really Optimize Your Payment Processing

Become an Informed Consumer

If you have the least-cost routing, activate it and then find out how it works. If possible, demand LCR.

Work out the best system for a transaction to go through as debt or credit card.

Prioritise Staff Training

Provide your staff with clear, concise training on how to use the EFTPOS system correctly.

Monitor

Go through your statements that your instructions are happening.

Save on transaction fees

You can make substantial savings with a little effort and work.

The November 2024 RBA report here showed significant shifts in Australian retail payments directly impacting retail.

What are the payment trends in Australia?

Card Payments: The Reigning Champion

Card payments continue to grow the most, with total purchases growing by 5.8% in value and 5.0% in number year-on-year. Notably, debit cards are slightly outpacing credit cards, I suspect mainly because merchant surcharges are cheaper.

Key statistics:

• Total card purchases: $87.7 billion
• Debit card growth: 5.9% in value, 5.0% in volume
• Credit card growth: 5.8% in value, 4.8% in volume

I doubt anyone would be surprised to read here that credit cards are used for higher purchases.

Recommendations for merchants

1. Ensure your POS system accepts all major card types.
2. Consider incentives for debit card usage to align with consumer trends.
3. Implement contactless payment options, as 39% of card transactions are now via mobile wallets.

New Payments Platform (NPP): Rapid Ascension

I was stunned by the high growth of Bill Payments and direct bank transfers. Merchants are clearly trying to avoid using cards by conducting direct bank transactions, and I am sure this is especially true of the bigger transactions.

NPP growth statistics:

• Transaction value: +17.7% year-on-year to $168.7 billion
• Transaction volume: +15.0% year-on-year to 142.1 million

Action items for businesses

1. We are now working on expanding your NPP capabilities into your POS system
2. Get ready for it.
3. Clearly, the public now is accepting it. I would look into it with your bank.

Cash

Cash usage is up, not as much as card usage, but still up. Plus, clearly, there are fewer but larger withdrawals. The reduction in the number of ATMs forces people to take out more, and there is inflation.

ATM withdrawal statistics:

• Value: +2.7% year-on-year to $9.0 billion
• Volume: -2.2% year-on-year to 28.7 million transactions

Considerations for retailers

1. Maintain sufficient cash reserves for customers who prefer it.
2. Do not drop cash as people want it.

The Decline of Traditional Payment Methods

Traditional payment methods show a significant decline, which I doubt surprises anyone.

Cheques: A Rapid Descent

Cheque usage has plummeted; I know that now few people want to accept it.

Cheque payment statistics:

• Value: -22.6% year-on-year to $15.4 billion
• Volume: -30.9% year-on-year to 1.1 million transactions

Interestingly, the average value of each cheque is down now.

Recommendations

1. I suggest that you seriously look into phasing it out.
2. Communicate with your customers about transitioning to digital payment methods.

Merchant Fees: Understanding Transaction Costs

This part of the report was particularly interesting, and it's worth your time to compare what you are paying to the average. Note that if the customer is not present, the rate is generally higher.

Merchant fees vary significantly across card types. Understanding this is crucial for optimising your payment acceptance strategy.

Average merchant fees comparison (September quarter 2024):

{table}

Action items

1. Review your current merchant fee structure against your costs. You can often get better rates if you take out a contract.
2. Consider reducing fees by promoting Cash/EFTPOS as a preferred payment method.
3. If you have not done it yet, implement least-cost routing to process transactions through the lowest-cost network automatically. Not having it is costing you money.

What are the future trends in payment systems?

The Australian retail payment ecosystem is rushing towards digital with its real-time solutions.

You must position your business for a digital retail environment.

If you want the details of this report, click here

Recently, we were invited as a significant POS Software supplier to a meeting to discuss the new payment method, PayTo, which is slowly being released.

The argument was that it would help with merchants' payment processing fees and reduce the frustrations of delayed settlements, customer arguments and chargebacks. It may help with the payment fee but certainly will help with the significant pain points of delayed settlements, customer arguments and chargebacks.

Think of it as an improved debt card system that can replace much of your credit card fees.

It gives you direct access to your customers' bank accounts and a faster, more secure, cost-effective payment method.

Let me start by saying that several larger retailers are using it, and soon, customers will expect it in your shop. I doubt you can avoid its usage. The big plus for the customer is that there is little to no cost for them.

It's excellent for larger items and items that need payment terms. They are looking at mid-this year for PayTo to go critical.

What is PayTo?

PayTo is a digital payment system that allows you to receive payments directly from customers' bank accounts. It's a modernised version of direct debit designed to be faster, more secure, and more flexible. As it operates in real-time, you get speedier cash flow.

How Does PayTo Work?

To use PayTo, your business must be sponsored by a bank, financial institution, or payment service provider. It is unclear if this sponsorship will involve you with a setup fee from your bank, but the process is straightforward once you're set up. Here's how it works:

Create a PayTo Agreement

You must define payment terms, including the amount, frequency, and duration. This agreement can be used for one-off, recurring, or ad-hoc payments.

Customer Authorisation

Your customer provides their PayID. The PayTo agreement is sent to their bank for authorisation, and they must approve it through their banking app. It ensures transparency and Security.

Payment Execution

Once authorised, PayTo debits the customer's account according to the agreed terms and instantly transfers funds to your business account.

Key Benefits of PayTo for the Merchant

Real-Time Payments

This is a big plus, as with PayTo, you instantly get the funds into your account. This will eliminate many of the delays associated with traditional payment methods. It means you can access your money immediately, improving your cash flow.

Lower Transaction Fees

Unlike credit card payments, PayTo does not go through a credit card supplier, so there are none of their fees.

Reduced Risk of Chargebacks

Since the customer has authorised it, the risk of chargebacks is reduced. In practice, this has been shown to reduce disputes.

Enhanced Security

Your customer agreements are now authorised through your customers' banking apps. It would reduce the risk of fraud.

5. Streamlined Reconciliation

The banks have reports that provide detailed transaction data, making matching payments and managing your accounts easier. Once this gets going, we will look into automating this in your POS System.

How to Get Started with PayTo

Check it out online

Click here

Contact Your Bank

You should contact your bank to learn about their PayTo options; there are some issues to resolve, particularly the potential costs.

Setup Fees

To use PayTo, your business must be sponsored by a bank or financial institution. Depending on your commercial arrangement, this may involve setup or access fees.

Transaction Fees

While PayTo generally has lower transaction fees than credit cards, I am unsure about debt cards.

The cost I was quoted was $0.30 fixed. Now, if I am doing a $500 transaction, that is quite reasonable, but if I am doing a $5.00 transaction, $0.30 is not so good.

Conclusion

PayTo is a modern payment solution that addresses many of the challenges retailers face with traditional payment methods. As I stated, it's coming; we can do nothing about that. Customers will want it.

Key Takeaways

• PayTo enables real-time payments directly from customers' bank accounts.
• We are on to it.
• It offers lower transaction fees and reduced chargeback risks compared to traditional methods.
• Retailers can benefit from improved cash flow, enhanced security, and streamlined reconciliation.
• To get started, contact your bank or financial institution and explore PayTo's resources.

Here are two reasons why the present card payment system is wrong.

The current card payment system in Australia is fundamentally flawed. It unfairly burdens merchants, particularly on small businesses. While convenient for consumers, this system has created a cost crisis that threatens the viability of many Australian retailers.

The Card Payment Boom

The increase in card payments has been remarkable, but it has also placed significant financial burdens on merchants as I will show.

The Cost of Convenience

Merchants bear a significant portion of the costs associated with card transactions:

• 50% of fees on debit card transactions
• 80% of fees on credit card transactions

These costs are mainly in the interchange fees, which make up about 80% of merchants' total fees for card transactions.

Understanding Interchange Fees

Interchange fees serve several purposes:

1. Transaction processing: Covering the costs of handling electronic payments
2. Risk management: Mitigating fraud and credit risks
3. Network maintenance: Supporting the infrastructure that enables card payments

Although the fees have dropped over time, as card usage has increased, total card costs have skyrocketed.

My first thought is why the fees here are so much higher than in many European countries. Indeed, Australia, with its lower cost structure, should be cheaper.

 I don't accept the bank's argument that our costs must be higher because of our low population. Australia's population is higher than most European countries.

In 2021, the average merchant service fee in Australia was 0.9%. In the EU, the average fee is 0.3% for credit cards and 0.2% for debit cards.

The Effect on Retailers and Consumers

The current fee structure creates a complex dynamic, as retailers pay most fees.

Now, card issuers offer more attractive terms to cardholders to attract more business, such as rewards points, which the card issuer charges the retailer. Is it correct that retailers should be charged these reward costs? I do not think so. Plus, under the current system imposed by the ACCC, retailers cannot surcharge many of these reward systems. For example, a premium VISA card must be charged the same surcharge as a standard VISA card.

Cost of card payments

Although the costs are dropping, as card usage has exploded, the total cost has skyrocketed. The immediate problem with these fees, which are dropping, is that they are still high in Australia compared to other countries like Europe. If in Europe, with its higher cost structures, it can be cheaper, why not here?

Over the same period, we have seen that card suppliers have moved the cost they levy from the customer to the merchants. Today, merchants pay almost all these costs.

The Reserve Bank of Australia has written a good article on the cost of Card Payments. You can read it here.

It is unfair that Small Businesses Pay More

A study by the RBA found that, on average, small merchants pay transaction fees that are about three times higher than those paid by large merchants. This significant gap raises questions about fairness and produces major competitiveness problems.

Factors Behind Higher Fees for Small Businesses

Several factors contribute to the higher costs faced by smaller merchants:

1. Limited Bargaining Power: Large businesses can better negotiate favourable wholesale fees for processing card transactions.

2. Fixed Costs: Accepting card payments involves fixed costs like purchasing or renting payment terminals. For smaller merchants, these costs are spread over a lower volume of transactions, leading to higher average costs.

3. Pricing Plans: I often see smaller merchants opting for short-term plans, which are generally more expensive in the long run.

4. Lack of Volume Discounts: Larger merchants benefit from volume discounts due to their higher transaction volumes, a benefit that's out of reach for most small businesses.

The Numbers Tell the Story

The disparity in costs is significant:

• The smaller merchants on the chart have an average cost of acceptance across all card types of 1.15% of transaction values.
• In contrast, the largest has an average cost of acceptance of just 0.47%.

The Broader Impact

This cost disparity has several implications:

1. Reduced Competitiveness: Higher transaction costs make it harder for smaller retailers to compete with larger retailers.

2. Cash Preference: Some small merchants discourage card use or implement minimum purchase amounts for card transactions, inconveniencing customers.

Here is a good article on the problems of small vs large retailers here.

Looking Ahead: Technology potential solutions.

Digital Wallet Integration:

Improvements to digital wallets like Apple Pay, Samsung Pay and Google Pay in the Australian card payment ecosystem could bypass some traditional card network fees, providing a direct, less costly payment route. These could bypass the card entirely.

Bitcoin as a Potential Solution

Items like Bitcoin present an intriguing alternative to Australia's current card payment systems, particularly for small businesses facing high transaction fees. Bitcoin has much lower transaction costs as it has no interchange or bank fees, plus it offers a level of anonymity and security that cash provides.

What the government should do?

-We should introduce a low-cost card payment system with the same fee, regardless of the business's size. We have one now, called cash, but we need something to replace it. Merchant surcharging should not be allowed in that payment system.

-Transparency in fee structures. We cannot act until we know exactly what is happening.

-A review of the current costs of interchange fees. Why do the card providers need so much in fees?

-A review of the card costs: Why should merchants have to pay for the reward system for many cards? If card suppliers want to market their cards more, they should pay for it. The current surcharge rules by the ACCC are wrong, as they do not allow a merchant to charge a surcharge on many premium cards. 

Conclusion

The Australian payment system needs urgent reform to protect small businesses and ensure fair competition. The convenience of card payments shouldn't come at the expense of our vibrant small business sector.

Today, not offering various payment alternatives will cost you. People want it. Yesterday, I went to buy bread partly to remove some change in my wallet; I went not to my regular bakery but to a bakery that I know accepts cash.

The Power of Flexible Payments

Catering to Customer Preferences

Our POS software features fully customisable payment methods.

Choose from cash, card, mobile payments, or bank deposits—whatever suits your customers' preferences.

This flexibility enhances customer satisfaction and keeps you competitive in Australia's evolving retail landscape.

Streamlining Transactions

An integrated POS system allows you to process payments faster and more accurately than traditional methods. This efficiency translates to shorter queues and happier customers.

Advanced Payment Handling

Split Payments and Deposits

Our POS solution goes beyond basic transactions. It allows for sophisticated payment scenarios that cater to various business models.

For instance, a customer ordering custom furniture can make a 50% advance payment, with the balance due upon delivery. This feature is handy for businesses dealing with high-value items or custom orders.

Customising Your Payment Rules

Tailor your POS system to match your unique business needs. Set minimum purchase amounts for card payments or configure automatic surcharges for specific payment methods.

Navigating Payment Method Restrictions

While customising your payment options, it's crucial to understand the legal framework governing payment methods in Australia. Unless you have a sign that you do not accept cash, you need a good excuse to reject it, e.g. you do not have enough change.

The Future of Retail Payments

Contactless and Mobile Payments

COVID skyrocketed contactless payments. Most card payments now are contactless. Now, the convenience of tapping a card or device to pay speeds up the checkout process and enhances customer satisfaction by minimizing physical contact.

Security Benefits

What I like about contactless payments is their enhanced security features. Contactless technology provides a safer transaction environment by reducing the risk of card skimming and card security as you do not handle the card.

Mobile Wallet Usage

Mobile wallet usage is rapidly rising. These digital wallets give ease of use and enhanced security through biometric authentication, such as fingerprint or facial recognition. For example, I like that my fingerprint protects my card usage.

Choosing the Right POS System

When selecting a POS system for your retail business, consider these key factors:

• Integration capabilities with your existing systems
• Scalability to grow with your business
• User-friendly interface for quick staff training
• Robust reporting features for business insights
• Regular updates and excellent customer support

The Impact on Your Bottom Line

Implementing comprehensive payments will have a significant impact on your business:

• Reduce transaction times
• Increase average transaction value; studies show people spend more on electronic money.
• Boost customer satisfaction scores with faster, more flexible payments in the form they like.

Ready to revolutionise your payment process? 

Frequently Asked Questions (FAQ)

Q: How do contactless payments work?

A: Contactless payments use Near Field Communication (NFC) technology. This method is fast, secure, and reduces physical contact, making it a preferred option for many consumers.

Q: What are the benefits of using mobile wallets?

A: Mobile wallets offer several benefits, including convenience, speed, and enhanced security with biometric authentication. 

Q: Are contactless payments secure?

A: Contactless payments are generally secure, I think more so than physical cards.

Q: What should I consider when choosing a POS system for my retail business?

A: When selecting a POS system, consider integration capabilities with existing systems, scalability to accommodate business growth, user-friendly interfaces for easy staff training, robust reporting features for business insights, and reliable customer support.

Q: How do POS systems handle split payments or deposits?

A: Our advanced POS systems allow businesses to manage complex payment scenarios such as split payments or deposits. This feature is handy for restaurants where customers often prefer split bills.

Q: Is tap-to-pay safe from skimmers?

A: Tap-to-pay transactions are generally safe from skimmers because they use encrypted data transmission and do not rely on the magnetic stripe that skimmers typically exploit. Mobile payment goes one stage further by adding an extra layer of security. 

The government has announced plans to ban debit card transaction fees, potentially starting January 1, 2026. This proposed ban, however, doesn't extend to credit card transactions.

A Global Trend in Payment Practices

In truth, this banning of debit surcharges was expected. Many countries, including the European Union and China, have implemented similar bans. Australia is now catching up with this global trend in consumer protection and payment fairness.

The Current Landscape: Widespread Surcharges

Today, many organisations, including government authorities, charge these fees. For instance, the Australian Taxation Office (ATO) imposes surcharges on card payments. This practice is widespread across various sectors and affects consumers daily.

Consumer Frustration: The Hidden Costs of Convenience

Many consumers, myself included, are frustrated with the current situation. It's common to hear complaints. I know I am not the only one who doesn't like that a $7.50 coffee and doughnut is charged at $8.00. If I am told it's $7.50, I get a receipt for $7.50, and in the bank, I see $8.00.

This sentiment is extreme here when the surcharge seems disproportionate to the transaction amount. From my extensive research into bank systems, I can confidently say that the cost of processing a $7.50 debit transaction is nowhere near 50 cents. Taking money from one account and putting it into another cost the bank no more than a few cents.

Potential Impacts on the Retail Scene

The ban on debit card surcharges will likely have far-reaching effects on retail. Here are some potential economic points to consider:

Increased Consumer Spending

By removing a barrier to debit card use, we might see a slight increase in overall consumer spending. The absence of surcharges could encourage more frequent use of debit cards, potentially leading to more transactions.

Acceleration of Cashless Trend

Australia is rapidly becoming a cashless society, and this ban will accelerate this trend. What is keeping cash going is the lower fees to the consumer. If debit cards become even more cost-effective for consumers, they will use them more.

Potential Price Increases

Some businesses might have to increase their prices depending on how this is implemented. We already have too much inflation that refuses to go away, potentially exacerbating the issue.

Changes in the Banking Sector

Today, these fees play a significant role in banking pricing. If banks are not making money from these fees, what adjustments will they make to their business charges? This is a crucial question that needs addressing.

Retailers' Concerns: Questions That Need Answers

Here are some questions that I think retailers need to ask now while people are talking about these changes, If they miss this opportunity, what you will find is that the banks will talk, consumer groups, government and since retailers are not talking what will come out of it?

1. Costs: Who will pay for these costs if fees are eliminated? Retailers should be concerned about who will absorb these costs if surcharges are banned.

2. Fee discrepancies: There's a noticeable difference in processing fees charged to small businesses compared to large corporations. Why are small businesses often charged up to twice as much? The costs surely are not that much more!

3. Premium Card Fees: Retailers are often charged higher processing fees so the bank customers can get benefits like Qantas points. Is this justifiable?

4. Card-Specific Surcharges: Retailers cannot charge different surcharges for different types of cards. The ACCC is wrong to make it mandatory to charge the same fee for a standard Visa card and a premium Visa card.

5. Bank Fees: Why are our debit and credit card fees so much higher than those of many European countries and China? This deserves a thorough investigation.

6. Unfair fees: Unlike large retailers who can negotiate better rates with banks, small businesses often pay double the fees for card processing. Besides being unfair, it means that the effect of these costs will have more impact on them.

Moving Forward: The Need for Dialogue

As we approach the potential implementation date, consumers and businesses must stay informed about these changes. Retailer representatives should engage with the government to address their concerns.

Moreover, this presents an opportunity to review and potentially overhaul Australia's card payment system.

The Future of Payments in Australia

Today, about 12% of transactions are made using cash, down from 27% five years ago. We're rapidly moving towards a cashless society.

Conclusion: A Complex Issue Requiring Careful Consideration

In conclusion, while the proposed ban on debit card surcharges is generally positive for consumers, other stakeholders have legitimate concerns. The government must carefully balance consumer protection with the financial realities retailers face.

Frequently Asked Questions (FAQ)

Q: Are there any exceptions to the debit card surcharge ban for specific industries or transaction types?

A: As of now, I have heard no talk of any exceptions being announced. The government will likely provide more details as the policy is developed.

Q: What measures will be taken to ensure businesses don't increase prices to offset the loss of surcharge revenue?

A: I am guessing here, but I suspect the Australian Competition and Consumer Commission (ACCC) may monitor for unfair price increases.

Q: How will the ban impact digital wallet payments and mobile payment platforms?

A: I am wondering about this. Apple, for example, has a special fee. This is an overseas fee, so it's unclear whether it's covered here. So, we do not know whether this ban applies to all debit card transactions made through digital wallets and mobile platforms.

Q: How will this affect loyalty programs or cashback offers tied to card usage?

A: The ban may affect these programs. I am worried that if the banks face reduced revenue from merchant fees, they might move to a retailer-pay model.

Q: What support or resources will be available to help small businesses adapt to these changes?

A: The government hasn't announced specific support measures yet; retailer associations should investigate.

Q: How might this affect international transactions or tourists using foreign-issued cards in Australia?

A: Who knows? In this situation, the merchant may be charged the fee.

Q: How will this impact the competitiveness of different payment methods in the Australian market?

A: It makes debit cards more competitive compared to credit cards and probably cash.

Many details will need to be developed and implemented.

World Wide Web Day is when the World Wide Web started 35 years ago.

In just 35 years, the internet has revolutionised retail, driving business digital transformation at an unprecedented pace. It has reshaped how businesses operate in an increasingly digital world.

The Evolution of POS Software

Its been remarkable. The days of cumbersome cash registers and tedious manual entry are behind us. The internet's influential role has reshaped the operations and customer experience for local businesses.

• Local shops now need an online presence for small retailers (website)
• Access to e-commerce platforms
• Social media to improve customer engagement
• The fax and much of the mail have practically gone
• Digital receipts

Digital Payment Solutions

Today, most payments, such as EFTPOS and credit cards, are made online. We at POS Solutions were the first software company to introduce this to Australia. https://www.possolutions.com.au/pages/tyro-payments.

Retail in the Internet Era

E-commerce has created new revenue streams and broadened customer access for small businesses. The COVID-19 crisis accelerated this trend.

Today embracing the power of data, including CRM and analytics, has emerged as a game-changing strategy for local retailers.

Customer relationship management (CRM) tools have become indispensable for small retailers. These systems allow businesses to:

• Track customer preferences and purchase history
• Personalise marketing efforts
• Improve customer service

The main reason this works today is that, with email and internet newsletters, businesses can communicate effectively for free with their customers. Before the internet, this was very expensive and only available to large companies.

Local Business Marketing Online: A Game-Changer

Local business marketing online has revolutionised how local retailers attract and retain customers. Strategies like local SEO, social media marketing, and targeted online advertising need to be looked at  to compete effectively.

Conclusion: Embracing the Digital Future

The internet has undoubtedly transformed retail.

There is no going back. 

Have you ever wondered what would happen if your system suddenly stopped? During the recent CrowdStrike outage, millions of retailers experienced this. They entered their shop, only to find their computers frozen and no-one of taking in eftpos. It's enough to make any business owner break out in a cold sweat as he looks at all the staff just sitting around.

The CrowdStrike Outage: A Global Crisis

Last week, the retail world was rocked by what experts call the most significant computer outage. It had a global impact, affecting businesses everywhere.

The Scope of the Problem

• Duration: For many, this outage lasted a few days. The day after, I took a picture of a supermarket checkout at my local supermarket.

• Geographical Reach: Businesses from Australia to Europe and North America reported issues.

This unprecedented event highlighted the critical need for robust POS system backups and comprehensive business continuity planning.

The Impact on Retailers

A Digital Domino Effect

The CrowdStrike outage wasn't just a minor inconvenience. For many retailers, it was like someone had pulled the plug on their entire operation. Here's what we saw:

• Computer Chaos: Many retailers' computers stopped working, and suddenly, people were manual.
• Manual Mode Activated: Shops had to dust off their old-school methods and operate manually, highlighting the importance of maintaining manual operational skills.
• Payment Pandemonium: Electronic payment disruption was widespread. For many stores, it was cash or nothing, underscoring the ongoing importance of cash transactions in our increasingly digital world.

  

Brick-and-Mortar Business Resilience Tested

This crisis put the spotlight on brick-and-mortar business resilience. Stores that had prepared for such scenarios fared better, while others struggled to maintain even basic operations. It became clear that in the face of retail technology failure, having a solid backup plan is not just advisable - it's essential.

Our Experience

Interestingly, none of our clients seemed affected by this widespread issue. We were ready, armed with fixes and procedures, but no one called. It was a bit like preparing for a party, getting dressed up and not going—frustrating, to say the least!

We even initiated a ring at a few sites we thought might be in trouble, but they were all fine.

Lessons Learned

The Golden Rule of Updates

I was gobsmacked to learn that many affected sites had broken the cardinal rule of IT: Never do an update on a Friday. It's like tempting fate just before the weekend! This incident is a stark reminder of the importance of timing in system maintenance and updates.

Insurance Implications

Those impacted should definitely touch base with their insurance providers. Your policy might just cover such tech-related interruptions.

Cash is Still King (Sometimes)

Meanwhile, this shows that we cannot yet get rid of cash. We are not yet equipped for a cashless society. Never undervalue the role of cash today!

Preparing for Future Outages

Create a Backup Plan

1. Develop offline procedures for critical operations
2. Train staff on manual processes
3. Keep physical copies of important information
4. Regularly test and update your retail tech disaster recovery plan

Build Resilience

• Diversify payment options: Don't put all your eggs in one digital basket
• Maintain offline capabilities: Keep those old-school skills sharp
• Stay informed: Keep an eye on tech news and potential threats
• Invest in reliable POS systems: Choose solutions with robust backup features and offline capabilities

Conclusion

This massive outage exposed our vulnerability to tech failures. As retailers need to stay alert and flexible. Learning and developing comprehensive backup strategies will help your stores weather future tech storms.
Smart retail isn't just about the shiniest new systems – it's about being prepared for system failures. Heed the warnings from this worldwide tech meltdown and shield your business from upcoming digital challenges.

"I'm sorry, but we no longer offer cheque facilities on this account." Imagine the surprise when the Commonwealth Bank of Australia told a long-time client of mine this. I was stunned, yet it's a fact throughout Australia today. Cheque usage in Australia has fallen so much. In the 1980s, cheques were 85% of all non-cash transactions. Today, they make up 0.01% of total payments. 

In 2023, Australians wrote less than one cheque per person a year. 

The Generational Divide

It's not just the numbers changing; it's the people too. Here's a quick breakdown that might surprise you:

It's not good for the cheque's future.

Cheques in Australia 2030: To Accept or Not to Accept?

Many retail Australian businesses no longer accept personal checks.

As a business owner, you might be torn. On the one hand, it's hard to refuse a payment if the customer is willing to pay, but it comes with risks. Let's break it down:

Pros of Accepting Cheques:

• Cater to older customers
• Rural areas with bad internet
• Avoid some processing fees, which is a huge problem as many of my clients sell low-margin items like lotto products.

Cons of Accepting Cheques:

• Risk of bounced cheques
• Time-consuming to process
• Time to get the payment into your account
• Potential for fraud (counterfeit, lost or altered cheques)

I had a customer whose chequebook was stolen, and it took a while to sort it out. If you have an old, unused chequebook, I suggest you destroy it.

Conclusion

The cheque's last stand is upon us, they are scheduled to be phased out in 2030. This doesn't spell doom for retailers as currently its use is limited.

The fact is that your next customer will be with a smartphone in hand, so make sure you can accept this payment method.

I recently had a surprising experience at a large supermarket. I went to pay and was told to go to another cash register as this one could not handle cash! While I'd seen this once at a trade show, it was the first time it had been in a mainstream store. This got me thinking that we are genuinely nearing the end of cash, despite what banks and governments say. Soon I expect many shops will introduce a surcharge for cash.

The Australian Cash Exodus

The numbers don't lie. The Global Payments Report predicts a dramatic shift – by 2025, cash will likely account for just 2% of the value in all point-of-sale transactions. It's not going away entirely, but other methods will dwarf the amount we spend using physical cash.  Unsurprisingly, it notes that ATM withdrawals also decline as people ditch cash.

Convenience and Security

We are also seeing the successors to credit and debit cards coming with digital wallets on our smartphones. These are far more secure. Think about it: a thief can potentially use a stolen card, but with a smartphone app, they'd need your phone, access to it, and usually your fingerprint. It's a big leap in protection!

Brick-and-Mortar Retailers: Time to Adapt

This cashier-less trend isn't just curious; it's a real opportunity for small businesses. Here's why upgrading your point-of-sale system makes sense:

- Efficiency:  No more fumbling with notes and coins means faster checkout. Customers love speed!

- Improved Security:    Less cash on-site drastically reduces the risk of theft.

- Enhanced Customer Experience:   People demand payment choices; cashless often feels to them secure and streamlined.

Embracing the Cashless Evolution

The retail world changes quickly. To stay ahead of the game, adaptability is key. Cashless point-of-sale solutions aren't just a trend but likely the future standard.

A Personal Note

Change can be unsettling – I remember when cards themselves were the new, scary thing! The same will happen with the shift away from cash. I know we now have and are selling cashless registers.

Ready to Make the Shift?

Our POS software is designed with both cashless and traditional payments in mind. Get your free consultation today, and let's future-proof your business together!

It appears the way people will pay is changing, and Australian retailers need to know. While not yet available in Australia, palm-based payment technology is gaining traction in the US. I see it appearing here soon.

What is Palm-Based Payment?

This technology links customers' unique vein patterns in palm prints to credit/debit cards. At checkout, a person whose palm is registered hovers their hand over a scanner. The scanner reads their vein structure and sends the details to the bank for payment authorisation. Such systems are already in use at select locations in the US. 

The Advantages for Retailers

• Seamless Transactions: Say goodbye to customers fumbling for cards or struggling to remember PINs.
• Time: Palm scanning offers faster transactions, saving shoppers and staff valuable time.
• Heightened Security: Biometric data is incredibly difficult to replicate, adding a robust layer of security and fraud protection. We now have a big problem with customers making transactions, paying by card, and then claiming it was not them. I had one client whose credit card was stolen, and by the time she found out, which was less than an hour, her card had been used in thousands of dollars of transactions.

The Disadvantages for Retailers

I confess I do not see any.

Still some issues to chew on would be:

• Cost: The readers may be expensive, and who pays for these palm scanners may be an issue.
• Integration: I do not see any potential integration issues with our point-of-sale systems, but if you do not use our POS System, you may want to make some enquiries.
• Privacy: I think we all feel a general uneasiness about our privacy. Mark Zuckerberg from Facebook once said the age of privacy is over, and he is probably right. Still, it's tough to accept this fact.
• Training: We all need to be trained on how to use it until we all get used to it. I can see someone using the wrong hand and not knowing why it is not working.

What Aussie Retailers Should Do

• Get Informed: Stay up-to-date on the latest developments in biometric payments.
• Monitor Customer Sentiment: Gauge your customers' comfort level with biometric technologies. Their openness will factor into adoption.
• Prepare for the Future: While immediate implementation is not necessary, consider how your payment infrastructure could adapt to support biometric options in the future.

The Takeaway

Palm-based payments and biometrics as a whole are set to transform the way we pay. While the timeline of widespread adoption in Australia is uncertain, being informed and prepared positions your retail business for success in this evolving landscape.

Last week, the "Cash Out Day" protest highlighted a growing tension in Australia's payment landscape: the rapid decline in cash usage and its implications for businesses and consumers. On April 2nd, Australians were asked to go to an ATM and withdraw some money in a symbolic gesture of support for cash. According to social media images, many did. I was one of them. While the exact total amount withdrawn is unclear, from social media, it appears that many did participate. However, the Australian Banking Association (ABA) stated there was no "material difference" in cash withdrawals across the industry on the day. What does that mean exactly? I would like to see figures.

What Sparked "Cash Out Day"?

This movement stems from several factors:

Shifting Payment Habits: Cash now accounts for about 13% of customer payments in Australia, which is a dramatic fall from 60% in 2010.

Bank Policies: Branch closures have created obstacles for cash-reliant individuals and businesses.

Cost of cash: Many people today prefer cash; in many cases, it's cheaper and more manageable, and there are fewer security issues, too.

Banks: Banks make money on non-cash transactions. By closing branches, they are effectively discouraging cash deposits/withdrawals.

Cashless Aspirations: I think the government would prefer to eliminate cash. The Queensland government stated that it envisions a cashless state by 2030. 

Arguments in Favor of Cash

"Cash Out Day" advocates cite these benefits:

Inclusivity: Cash requires no bank accounts or technology, making it accessible to all.

Budgeting: Physical money offers a tangible sense of spending.

Privacy: Cash transactions leave less of a digital footprint.

Reliability: Cash functions independently of power grids or internet connectivity. It still happens that EFTPOS goes out, so what do shops do when they switch to cash?

The Small Business Perspective

In Australia, it is legal for businesses to refuse to accept cash, provided that they inform consumers of their stance before entering into any “contract” for the supply of goods or services. If you want to reject cash, you must have a sign in a clear position in your shop saying that. Usually, it is placed at the front entrance.

Smaller retailers, especially those involved in markets or events, rely heavily on cash. My observations within my local newsagency network showed that while most owners knew about "Cash Out Day," its impact on their daily trade was minimal.

The Uncertain Future of Cash

The potential bankruptcy of Armaguard, Australia's major cash transportation company, further underscores the precarious position of physical currency. This raises concerns about the logistical and economic challenges of maintaining a cash infrastructure as usage decreases. 

The Role of POS Systems

A robust POS (Point of Sale) system becomes crucial for businesses in this evolving landscape. The right software seamlessly manages cash and digital payments, providing flexibility and detailed reporting while ensuring smooth, secure operations. A great POS system helps you manage it all!

The Bottom Line

"Cash Out Day" serves as a potent reminder that amidst the move towards a cashless society, the value proposition of cash persists. This debate centres on choice, accessibility, and the practical needs of businesses and consumers in an increasingly digital Australia.

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!

The holiday season is nearly here, and for retail shops, that means busier than usual trading days. As you gear up for the summer sales rush, it's essential to be aware of potential delays in settlement dates over the public holidays. 

What are Settlement Dates?

Whenever a customer pays with a credit or debit card, the funds from those transactions don't land in your bank account immediately. Usually, we see a 1-3 day delay, the settlement period, which is the period it takes for the banks to finalise the transactions before releasing your funds.

The time it takes to hit your bank depends on how many steps the funds take to flow. Today, with the least call routing in place, it is likely that two almost identical payments going through at the same time will hit your bank at different times.

What is happening due to public holidays is that your funds are delayed because one step is delayed. This happened recently to people who accepted an American Credit card, and in this settlement period, the thanksgiving day appeared, and their funds were delayed on the USA side.

Why You Should Pay Attention to Settlement Around the Holidays

Due to various public holidays occurring in late December and early January, including Christmas Day, Boxing Day, and New Year's Day, settlement of your daily takings can be delayed by up to 5 days. This is extreme, but it does happen.

For businesses already operating on tight margins, these longer-than-normal settlement times can cause havoc with managing cash flow. Plus, as these delays are often unknown, it makes it hard to accurately forecast cash flow, which is essential for keeping a business afloat.

Tips to Manage Settlement Delays This Holiday Season

Here are some handy hints for retail shops to minimize business disruptions from settlement delays over the holidays:

• Plan - Contact your provider to get a feel of what will happen. Do not count too much on them, knowing they are only one step in the chain. 

• Budget carefully - to cover unexpected delays in accessing your daily takings. Do not count on monies on the way.

By understanding settlement dates and planning appropriately this holiday season, small retail businesses can avoid being caught short and keep their sales momentum strong.

Streamline Success This Holiday Season

Managing the intricacies of settlement dates, cash flow delays, and inventory needs during the hectic holiday rush is hard enough for small retailers. Don't let outdated point-of-sale limitations make it more challenging.

The right POS solution, tailored for small retail businesses, can seamlessly handle all your transactions, payments, supply orders, and accounting in one integrated system. This means more efficiency, less wasted time, and complete control - even when settlement schedules are disrupted.

At POS Solutions, we understand the modern retailer because we’ve been in your shoes. That’s why thousands of businesses trust our POS platform and EFTPOS and Credit integrations. Our retail experts will help you.

Swipe, beep, tap. Thanks to modern payment technology, paying for something has never been easier. But while tap-and-go is crazy convenient for customers, the hidden fees in the payment system are anything but convenient for business owners.

Every time a customer pays with a dual-network debit or credit card, you may pay inflated processing fees that dig into your bottom line.

The Banks Have Been Slow to Act

But a simple fix could help you save - the least cost routing (Merchant-choice routing).

The Reserve Bank has revealed a woeful roll-out of least-cost routing technology by the major banks after repeated urgings to act.

.. the National Australia Bank has remarkably only turned the system on for 15 per cent of its merchants and the other major banks offer it to well under half their customers.

When I was told that, I freaked out.  How could so many people not have it? 

Small business payment processing

In the current payments system, a customer taps their debit or credit card to purchase in your shop, and that payment is without least cost routing, likely being sent through the bank's preferred path on the EFTPOS network, which is not often the cheapest.

But here's the thing - most of those cards also have access to the lower-cost EFTPOS network, but your EFTPOS/Credit systems are not set up to take advantage of this fact. If so, your shop is shouldering unfairly high fees on every card transaction. Why should you be penalised with an excessive fee?

Why Unfair Fees Matter

• You either absorb the fees and take a hit on your tight margins or pass the costs to customers through higher prices.

• This makes you dearer as your fees are higher than those with low-cost routing.

• This stifles competition when businesses are saddled with higher fees

Least Cost Routing Can Instantly Save You Money

Yet least-cost routing could help small businesses across Australia save over $1 billion per year.

With the least cost routing, dual-network card payments are automatically routed through the lowest fee network. This ensures you pay the minimum fees whenever a customer taps their card or buys online from your EFTPOS/Credit provider. Saving just cents per transaction adds up pretty fast.

Reducing card fees for small businesses

Please don't wait for your bank or payment provider to act because they are clearly not acting. You have to take control and access the savings of least-cost routing now.

Step 1: Ask Your Provider

First, contact your payment terminal or POS software provider. Ask if they offer the least-cost routing and whether it is activated for your business. If not, put pressure on them to enable it. 

Step 2: Review Your Fees

Take a detailed look at your monthly statements. Identify high credit/debit card fees.

Step 3: Train Your Team

Ensure staff know how to process cards via the EFTPOS network, which can save you money.

Take Action Now for Your Business

Small changes in your business can quickly add up to big savings. But we need your help to pressure the banks and payments giants to enable fair fees for all.

Contact your EFTPOS provider today to enable the least-cost routing. Also, check your monthly statements for excessive card fees to identify possible savings.

With simple advocacy, you can tap into instant savings for your shop. Let's work together to build a fairer payment system for small retailers and consumers.

If you have not done it yet, do it NOW!