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.

The recent legal action by the ACCC against Coles and Woolworths is a shocker. Focusing on allegedly misleading discount campaigns will bring retail pricing strategies under intense scrutiny.

What's at Stake in the ACCC vs. Supermarket Giants Case?

At the heart of this legal battle are the "Prices Dropped" and "Down Down" campaigns run by Woolworths and Coles, respectively. The ACCC contends that these promotions were misleading due to artificial price inflation before the discounts. 

Read what they are saying about one item here.

Now, in total, the ACCC is taking to the Federal Court:  

• Woolworths: For 266 products affected over 20 months
• Coles: For 245 products affected over 15 months

The outcome of this lawsuit could have far-reaching implications on our pricing strategies, especially in our current never-ending inflationary environment.

The Numbers

These aren't small numbers; the potential penalties are significant, $50 million for each breach. That should be enough to make any retailer take notice.

A Common Scenario

Imagine this scenario: You've been selling an item for $6 for a while. Your supplier increases their price to $5, so you bump your selling price to $10. Then, a week later, you decide to run a 20% "discount" promotion, bringing the price down to $8. In retail, this is relatively common.

Based on what the ACCC is saying, your initial pricing and cost-based increase are standard practices, so that is okay here, but that "discount" promotion could land you in hot water. Why? Because your discounted price of $8 is higher than your original long-term price of $6. A week is hardly a reasonable period.

The Grey Area

The tricky part is determining a reasonable period before offering a discount.

"What if you offer a discount three weeks after increasing the price, a month, a few months, etc? Would that be misleading or fair?" The law needs to be more transparent on this, which leaves us retailers with a problem of what is reasonable.

My Two Cents

Based on my years of experience, it's best to err on caution. If you've just had a significant price increase, think twice before slapping a discount label if the final price is still above your long-term price point. Your POS System shows a history of when you sold an item and for how much. It will also inform you how long the new price has been in effect. I will also supply you with many of the records you may need.

Let's tweak our scenario a bit more:

1. Original cost: $3
2. Original selling price: $6
3. New cost: $3.50
4. New selling price: $7
5. 20% discount price: $5.60

In this case, your discounted price ($5.60) is below your long-term price ($6), so it will likely be okay.

The Bigger Picture

This case against Coles and Woolworths isn't just about big supermarkets. We must be more mindful of how we present our pricing and promotions to customers.

A Wish for the Future

Would it be great if suppliers informed us about price increases? This would allow us to prepare and communicate proactively with our customers, but we can discuss that in another post.

In the meantime, please ensure that your pricing practices comply with the current legal standards and keep our customer's trust. After all, that's what good retailing is all about.

Throughout my years in computers and retail. However, nothing beats the gut-wrenching moment when you discover your data is lost. I want to share a recent situation that drove home the essential nature of backups for a retail shop.

The Fire That Changed Everything

Recently, I answered a call that left me feeling sick. One of our customers had experienced a catastrophic fire, with their store's computer caught in the destruction. The technician's voice was heavy with dread as he shared the grim reality: No backups. It's incredible how those eight letters can spell disaster.

The Waiting Game

Now, we're playing a nerve-wracking waiting game. Will the computer survive? Sometimes, they do. I've witnessed hard drives burnt with their data intact. Once, we even rebuilt a drive in Perth by a company specialising in salvaging precious information on hard drives. But it's all a point.

The Harsh Reality

If only they had a backup. With a backup, we could have sent them a new computer, and they'd be up and running in no time. Even with the shop closed, they could've sent out customer statements, keeping their business ticking over.

Legal Responsibilities

Many retailers don't realise it's your legal responsibility to have backups. The big tech companies make this crystal clear in their terms of service.

Take Apple, for instance. Their contract states:

"TO THE GREATEST EXTENT PERMISSIBLE BY APPLICABLE LAW, APPLE DOES NOT GUARANTEE OR WARRANT THAT ANY CONTENT YOU MAY STORE OR ACCESS THROUGH THE SERVICE WILL NOT BE SUBJECT TO INADVERTENT DAMAGE, CORRUPTION, LOSS, OR REMOVAL IN ACCORDANCE WITH THE TERMS OF THIS AGREEMENT, AND APPLE SHALL NOT BE RESPONSIBLE SHOULD SUCH DAMAGE, CORRUPTION, LOSS, OR REMOVAL OCCUR. It is your responsibility to maintain appropriate alternate backup of your information and data."

Microsoft is even more blunt:

"You are wholly responsible for configuring your Customer Solution to ensure adequate security, protection, and backup of Customer Data."

I've heard that US courts have ruled that not having a backup is considered misuse. It's an obligation.

In Australia, while no single comprehensive law mandating backups, various regulations and industry standards effectively require or strongly recommend maintaining adequate backup systems. The responsibility for implementing and managing backups generally falls on the business or organisation.

Backups and Your Point-of-Sale System

In retail, your Point-of-Sale (POS) system information is the heart of your business. That's why a backup is essential. At the very least, you should back up your data daily, and many of our clients do it even more frequently.

The Cost of Neglect

Let's break down what you stand to lose without a proper backup:

• Sales Records: You could lose your entire financial history, leading to significant tax compliance issues.
• Inventory: You're looking at a reordering nightmare without accurate stock levels.
• Customer Information: Say goodbye to your loyalty programs and valuable contact details.
• Employee Data: Prepare for payroll headaches and scheduling chaos.

Making Backups a Habit

Here's how you can protect your business:

1. Schedule daily backups: There are automated systems that use cloud storage that allow you almost to set and forget.
2. Use multiple backup methods: The cheapest and most popular methods are external hard drives and USB sticks.

Whichever way you need to

1. Test your backups regularly: A backup is useless if you can't restore from it.
2. Train your staff: Make sure everyone knows the importance of data protection.

Remember, it's about protecting against catastrophic events.

The Bottom Line

Invest in a robust backup system today. Trust me, your future self will thank you.

Proper proof of purchase practices are critical in retail today. We witness this firsthand through our support channels for retailers who contact us with questions and concerns about proof of purchase issues.

I am not a lawyer, and I would suggest asking the appropriate authorities if you have any queries.

The Significance of Proof of Purchase

• Customer Assurance: Providing tangible evidence of transactions enhances customer confidence.
• Legal Compliance: Adherence to proof of purchase regulations is a legal requirement.
• Conflict Resolution: Proper documentation significantly streamlines dispute management.

Australian regulations

Transactions $75 and above

Should be supplied immediately

Transactions under $75

Proof should be provided upon customer request made within seven days. This can be a problem if they pay in cash. 

Acceptable Forms of Proof

Some examples of proof of purchase:

• Cash register receipts
• Handwritten receipts: I recently had a client whose customer demanded extra detail. He felt that the cash receipt did not have enough detail to show the tax implications of the transaction explicitly, so my client rewrote it in an invoice book and stapled the cash receipt to it.
• GST tax invoices
• Financial statements (credit/debit card, bank)
• Lay-by agreements
• Digital receipts (email, SMS)
• Photographic evidence of receipts
• Warranty cards with purchase details:
• Serial numbers linked to supplier databases can be a problem. A client disputed that he had sold the item, while a supplier stated they had.
   

It's crucial to note that Australian Consumer Law doesn't explicitly define "sufficient proof of purchase. The requirement is that customers must reasonably demonstrate proof of purchase. 

Modern POS software can help you; one client showed a computer listing to a tribunal on the day the person claimed to have brought the item, but his shop had not sold this product. Another report that no sale for the claimed amount had occurred. We're moving towards a world where digital receipt proof of purchase will become the norm rather than the exception.

Essential Receipt Information

All proofs of purchase must include:

Managing Complex Scenarios

Late Requests and Itemized Bills

While charging for receipts after seven days is permissible, it's generally inadvisable due to potential negative customer impact.

For itemised bill requests:

These tend to be customers with specialised needs, and often, the retailer needs to go manual. In this case, I suggest keeping a record of that receipt. In a dispute, and the customer demands an itemised bill, you should immediately inform them that you reserve the right to charge them for the difference if it exceeds the original amount.

Dispute Resolution

In cases of disputed purchases without clear proof, it's essential to:

1. Thoroughly investigate your POS System transaction records to check the transaction
2. Consider alternative forms of evidence
3. Inform customers about potential additional costs in itemised bills
4. Balance customer rights with fraud prevention measures
   

   Handling Difficult Situations

   Several times, people have come into shops with what they claimed were faded receipts—essentially blank pieces of paper. In such cases, it's crucial to ask for alternative evidence. Remember, if a customer can reasonably demonstrate they purchased an item, denying their rights could be breaking the law.

Effective Record Management

The ACCC mandates a 5-year record retention period. To manage this effectively:

1. Implement a reliable POS system
2. Regularly back up data
3. Archive old records before deletion
4. Keep the backups; you never know when you need them.

Best Practices

1. Staff Training: Ensure a comprehensive understanding of policies and procedures.
2. Digital Transition: Utilise electronic receipts for improved storage and retrieval.
3. Customer-Centric Policies: Prioritise customer satisfaction within legal boundaries.
4. Clear Guidelines: If in doubt, seek advice from people who can help; most employee organisations can help here.

Conclusion

Adequate retail compliance practices are fundamental to building customer trust and safeguarding business interests. While legal compliance is crucial, the ultimate goal is to foster positive customer relationships while protecting the business.

If you want to know more, click here.

Running your shop is hard work! You deal with:

- Long days behind the counter 
- Money worries from taxes and bills 
- Government officers
- Customers 

Things recently got more burdensome for many owners as the economy is not going well.

With all these stresses, taking care of your mental health is critical.

Personal Experiences

Over the years, I've encountered some heartbreaking situations that highlight the urgency of this issue highlighted for today:

The Locked-In Boss

I once had a boss who locked himself in his office, overwhelmed by stress. The situation became so dire that we called his wife, and when she came, we had to threaten to call the fire brigade to get him out. Sadly, I never saw him again after that incident.

Ivan's Story

One of my clients, Ivan, who was a genuinely capital guy, seemed alright, so I was shocked after he disappeared when rumours in the newsagency community circulated that he had taken his own life. While I can't confirm if it was work-related, it's a stark reminder of the hidden struggles many in our industry face.

A Schoolmate's Tragedy

Recently, a classmate I knew well committed suicide. She had had three failed marriages, no kids and was looking at the end of her fourth marriage.

These experiences have deeply affected me and reinforced my commitment to prioritising mental health.

Startling Statistics

Recent surveys reveal some concerning trends:

• 78% of retail workers experienced stress, anxiety, or depression symptoms in the past month
• 45% of business owners feel they lack resources to manage employee mental health issues

These numbers aren't just statistics – they represent struggling people in our community.

Legal Obligations for Employers

As a business owner, you are responsible for creating a supportive work environment. Here are some legal obligations in Australia regarding mental health in the workplace:

Practical Ideas for Support

Open Communication

Encourage regular check-ins with your team. A simple "How are you doing?" can open up meaningful conversations.

Flexible Scheduling

Where possible, offer flexible hours. It can help employees more effectively balance work and personal life.

Mental Health Resources

If you are worried, contact your industrial body for advice. They can provide information about what you should do and mental health services options.

Lead by Example

Share your own experiences with stress management.

Conclusion

Remember, if someone is struggling, tell them they are not alone, and there's nothing wrong with seeking help or referring them to someone who can help.

Fun fact: On average, in Australia, we have about nine suicides a day.

The short answer is that no one knows. We are on to it; I have discussed it before here and recently had several conversations with people about Australia's new 'right to disconnect' law. It's a hot topic, alright. 

Firstly, I am not a lawyer. This is not legal advice.

Right to disconnect Australia.

The right to disconnect gives employees the legal right to ignore work-related communications outside of their working hours unless it's deemed reasonable to respond. This includes, for example, your communication to them and any customer communication to your employees. It's part of the Fair Work Act amendments and aims to promote better work-life balance. I found a readable explanation by a lawyer here.

When Does It Start?

It's in effect for most businesses now, but organisations with fewer than fifteen (15) employees have until 26 August 2025 to comply. This means most of my clients have a year to digest it.

What Does 'Reasonable' Mean?

Here's the tricky bit - the law doesn't define what's reasonable. It's unclear if it's okay to send and, if so, what you can send; the main focus of the act is that the employee does not need to answer. Now, the courts must interpret this case-by-case until we get clarity.

My first question is, how does an employee know it's reasonable to respond till they read it? So do they have to read it, or is the onus on the employer to make sure it is reasonable before sending it? If so, based on my research and conversations and readings, here are some situations that might be considered reasonable to send:

1. Emergencies (e.g., critical system failures)
2. Pre-agreed on-call arrangements
3. Safety issues
4. Legal or regulatory requirements
5. If you are overseas at a different timezone 

Impact on Retailers Using POS Systems

One concern I've noticed is how this law might affect rostering systems in POS software. Imagine this scenario:

You're working on rosters after hours and must inform an employee not to come in tomorrow. You send an email, but they don't respond. You call, but they don't answer, citing the right to disconnect. The next day, they show up for work unnecessarily.

This situation highlights the need for clear communication protocols and expectations.

I would be careful about working on the rostering system after hours. If this proves to be a problem, we are considering adding a holding facility to stop SMS and emails from being sent to selected people after hours. When we get answers, we can move. If you think we should add any changes, please let me know.

Note that SMS and most popular email services like Gmail can schedule their services; you may want to look into that so your communication goes out during business hours. Even if sending this stuff is okay, you do not want to be the test case to prove it.

After-hours communication policy

You need one. The right to disconnect is here to stay, and despite some talk by other politicians, it isn't very likely that you should go. At best, it might be amended. 

I have seen how retail frauds severely impact retailers. As a retailer with a brick-and-mortar store, you're likely aware of the various business challenges. Void fraud is one of the worst threats to your business, as it attempts to bypass the security in your POS system. 

What is POS Void Fraud?

POS void fraud is a sneaky tactic where unscrupulous workers process a sale, take the customer's money, and then erase the transaction from the system, effectively taking the cash without leaving evidence.

The Mechanics of Void Fraud

Here's how it typically works:

1. The employee processes a legitimate cash sale. 
2. They void the transaction after the customer leaves
3. The cash is pocketed, and no record of the sale remains
4. End-of-day totals appear to balance. 

It's a sneaky tactic that can be hard to spot without the proper controls. 

Customers returning with queries about purchases not in the POS system are the primary method of catching these people. To make this legally stick, you need cameras on the till. This appears to be the only evidence the courts now accept.

Red Flags to Watch For

In my experience, several warning signs might help indicate void fraud is occurring:

• An unusually high number of voided or no-sale transactions
• Voids and no-sales happening at odd times or consistently by the same employee
• Frequent voids for high-value items
• Suddenly, low rates of cash

Suspicious Employee Behaviour

Be on the lookout for staff members who:

• Frequently process transactions without customers present
• Insist on handling specific customers or transactions themselves
• Are overly protective of their register or reluctant to take breaks
• Want to work alone? 

Regular audits and rotating staff assignments can deter potential fraudsters.

POS fraud prevention

1. Implement Strict Void Policies

• Limit void permissions: Only allow trusted senior staff to process voids
• Require approval: Set up your POS system to need manager approval for voids
• Document reasons: Make it mandatory to record a reason for each void

2. Utilise Technology

Modern POS software offers powerful tools to combat fraud:

• Real-time alerts: Get notified instantly of suspicious void patterns
• Integrated camera systems: Link transactions to video footage for easy review
• Detailed reporting: Analyse void trends and identify potential issues

3. What to do

• Do not ignore the seriousness of void fraud
• Proper cash handling procedures
• Spot and report suspicious behaviour
• Review your security camera footage regularly, mainly when a person is alone.
• Conduct frequent, unannounced audits of  Void and No-sale transactions

A Personal Anecdote

I once worked with a small newsagency that discovered they were losing thousands of dollars to void fraud. The employee was ringing up transactions in the customer section, issuing receipts and then voiding the transaction in the cash register. We cut their losses almost immediately, needless to say, the owner.

Retail fraud detection

The first point is to check whether many of these voided transactions are occurring and when and who is doing them.



Easy enough to do: go to main menu > Cash register > Transaction Enquiry (see green arrow)

Conclusion

While POS void fraud poses significant problems, implementing effective strategies and our cutting-edge tools can safeguard your business. Remember, proactive measures trump reactive ones.

Have you ever been locked out of a crucial business system? For many business owners, this becomes a reality when they overlook a critical step: notify their POS provider about a change in business ownership. As a veteran of retail POS systems, I've seen how this simple oversight can spiral into major issues. But here's the surprising truth: a few minutes of your time can prevent this headache. 

The Importance of Timely Business Ownership Transfer Notification

A Cautionary Tale: The Unexpected Support Call

Picture this: Our support team receives a call from an unfamiliar voice requesting assistance for a shop we know well. They ask for sensitive customer data, raising immediate red flags. Until we are notified of a change in ownership, the shop's ownership belongs to the previous owner. This scenario has occurred several times.

Good Reasons for Prompt Business Notification of a change in ownership

1. Free Training Opportunities: We offer complimentary training for new owners during a retail business ownership change - why should they miss out?

2. Licence Ownership Transfer: Until officially notified, the POS licence remains with the previous owner, potentially leaving the old owners liable for new costs.

3. Data Security and Privacy: Ensuring only authorised individuals access sensitive information is crucial during a POS ownership change.

4. Legal Implications: Updating POS ownership information can lead to contractual disputes and legal liabilities. The law is quite clear that you must notify all the stakeholders in your business.  

Ownership Transfer Process

- Complete and submit the required documentation here.

- If a valid email address is on the form, both the Releasor and Acceptor will receive an email confirmation from us once the change of ownership has been completed.
 

Benefits of Proper Notification

By following the correct retail POS system update procedures, you ensure:

• Uninterrupted access to support services
• Proper transfer of licence ownership
• Access to complimentary training for new owners
• Maintenance of data security and privacy
• Compliance with legal and contractual obligations

FAQ: Common Concerns About POS Ownership Changes

Q: How soon should I notify you of a business ownership transfer? 

A: Ideally, at least two weeks before the official transfer date.

Q: Will the POS system be unavailable during the transfer? 

A: No

Q: Do staff need to be retrained after the ownership change? 

A: We recommend discussing the changeover with our support staff as the new owner and the staff will now need to get the system working according to how the new management needs.

Q: Are there any fees associated with ownership transfers? 

A: If the lawyers do it, their time will be charged. If you do, we will have no charges.

Conclusion

A POS ownership change is a critical step in ensuring the smooth operation of your shop. It only takes a few minutes.

This question arises every year and again this year. Here, I will discuss the importance of stocktaking for businesses and address common objections. 

We also explore the advantages of performing a stocktake, even when facing challenging circumstances. Additionally, we highlight the potential risks of skipping a formal stocktake and how implementing regular rolling stocktakes throughout the year may offer better results.

Firstly, stocktaking is a critical process for retailers, ensuring accurate management of inventory levels. Despite perceived challenges, I think its benefits far outweigh the drawbacks. Modern POS software can streamline the stocktaking process. It's not just for the ATO; I have seen many retailers whose profits have mysteriously disappeared. We are not talking small figures here. Theft, damage, or errors of the inventory mean a significant time loss to the retailers, which also implies a substantial loss of revenue due to the problems of the businesses. You can substantially decrease the losses and increase the revenue by carefully regulating your inventory.

Objections to Stocktaking:

Stocktaking can be viewed as a tedious and resource-intensive task, with several arguments against its necessity:

It consumes time and effort
It incurs additional costs without generating revenue
Disruptions to daily operations can negatively impact sales

These concerns are legitimate; however, there are compelling reasons to perform a stocktake despite them.

Legal Requirements for Stocktaking:

According to the Australian Taxation Office (ATO), businesses must perform a stocktake if they cannot accurately estimate their current stock levels based on historical data and do not meet specific conditions. These conditions include:

The difference in stock values between the previous financial year and the current financial year is less than $5,000

Using a reliable method, you can reasonably estimate your current stock levels and maintain sufficient evidence to substantiate your estimates.

Please read this page from the ATO here on this question and pay particular attention to the square I marked in red. 

I am sure every client I have has at least a $5,000 inventory difference between this fiscal year and the previous one. 

It is your responsibility to affirm your stock figures to the ATO, at least to their complete satisfaction, so that the ATO will regard your figures as reliable evidence.

Rolling Stocktakes vs Formal Stocktakes:

There's debate over whether to conduct traditional annual stocktakes or opt for rolling stocktakes throughout the year. While rolling stocktakes offer real-time insights, they can be more resource-intensive than formal stocktakes. Both methods have their merits, but accuracy in stock valuation remains paramount for tax purposes.

Advantages of Performing a Stocktake:

A well-executed stocktake offers numerous benefits for businesses, including:

By comparing the inventory on record with the actual stock, one can obtain the data needed to make better stock orders, properly manage inventory, and prevent loss at the premises in cases of theft or things are just out of place. This information can then be used to devise better security measures.

Products are checked to see how many are near expiry and if stock is spoilt and damaged. Often, this allows last-minute sales to recover whatever value is left in these goods.

Getting technology that provides 24/7 visibility of the inventory status and the capability to view, track, and control the flow of goods in and out of the business will ultimately increase operational efficiency, accuracy, and, more importantly, customer satisfaction.
 

POS Software Benefits:

Our POS software comes equipped with robust inventory management features to simplify stocktaking:

• Barcode scanning: Scan product barcodes for faster and more accurate counting.
• Real-time inventory updates: You do not need to close the shop to do a stocktake.
• Stocktake reports: It generates detailed reports to analyze discrepancies and identify trends.

Conclusion:

With their circumstances, different businesses ought to decide whether to implement a formal or rolling stocktake. The legal aspects and benefits, which must be balanced with each approach, should form the basis for a decision. By taking these necessary steps, you can make wiser decisions. 

Whichever way you go, I wish you all the best for your business.
 

As a retailer, you need to keep records for years. Government regulations, legal needs, or even access to old customer data are all important! I sometimes had to access very old information just for commercial reasons 20+ years ago.

Now, have you thought about how long your digital records will last?

Sadly, the hard drives and discs we use aren't built for centuries like those old carvings archaeologists up to today. Let's look into long-term storage so you make the right choices.

What Lasts, What Doesn't, and How to Make it Better

• Cloud storage: Theoretically, it lasts forever, but there will be issues.
• Magnetic Tapes to the Rescue? These can, under ideal conditions, last a long time, but few of us actually have the specialised equipment. Besides, it's often a pain to use.
• Old fashion Hard Drives: Most work for about 3-7 years, although a lucky few last longer. For them to keep storing, you need to use them; otherwise, they deteriorate after about two years. 
• SSDs: Most SSDs won't outlive their 5-10-year warranties and, if left unused, will deteriorate faster than old-fashioned hard drives to refresh the data system
• Optical Discs: Please aim for quality; write-once media like Verbatim Gold have more extended longevity, and the cheaper ones have much less; for CDs and DVDs, you are looking depending on the type for 5 to 100 years. When I went to the Verbatim website and looked at their warranty here, I noticed that they only give two years, which does not include a data retention guarantee. The courts may have something to say about that, but few people want to have to argue this in court.

Most people today, when looking at very long-term storage, look at DVDs today as they are both convenient and economical if so: 

Protecting Your Precious Data on CDs and DVDs:

It depends on three main factors:

1) Have more than one backup. I would argue that you do not have a backup if you only have one backup. These two backups should be stored in different places so that if anything happens to one location, the other is safe elsewhere.

2)  You need good quality DVDs. There are good reasons why they are a bit dearer. This comes from a Canadian government study, which you can find here.

3) Environment matters!

Pick a place 

• Cool & Dry: Store items at around 20°C with about 40% humidity. Heat and humidity are the silent killers! This can be a problem as we often go above this in summer. Do you have a cellar? Avoid garages or attics where temperatures can swing wildly!
• The Dark Side: Store discs in cases out of direct sunlight. I put a sealed plastic bag over them.
• Peace & Quiet: Avoid putting the discs where they will be moved or dropped.

Cloud Storage

As the limitations of physical storage have become increasingly apparent, cloud storage emerges as a compelling solution for preserving your digital legacy. In theory, entrusting your data to a reputable cloud provider can overcome many of these problems.

Pros:

• Accuracy: Today, many Cloud storage providers offer an astonishing rate of accuracy in their storage capacity. One I saw doing an online search offering 99.999999999% (that's 11 9s!) data durability. That far exceeds the reliability of any physical media.
• Dispersed storage: Many Cloud providers will keep your data in many different geographically dispersed data centres, thus ensuring redundancy and resilience.
• Easy access: Your data is available on-demand from any internet-connected device, anytime, anywhere.

Cons:

• Cost: Generally, it costs, although many, like Google and Microsoft, do have a limited free plan.
• Future uncertainity: Considering the period of time we are looking at here, a cloud provider could go out of business, change its policy and who knows what.  
• Policy: Some cloud providers, e.g. Google, state that they "reserve the right to delete an inactive Google Account and its activity and data if you are inactive across Google for at least two years." So every two years, you have to go into your account to say hey, this account is still active. Its not a big ask but its not entirely setup and forget.
• Remembering passwords: Cloud accounts work through account names, passwords, and increasingly mobile numbers. Over the next 10 to 20 years, how will you remember these details? Will you have the same mobile number then? If someone else has access to your account and passwords then they also can get your data. 
• Control: In an overall sense you do lack control.
• Privacy concerns: Be aware of potential changes in data privacy laws or a provider's terms of service. Although few of my clients has an issue here now, the privacy laws are slowly turning to the idea that much data businesses stored must be held in Australia, not an issue now but who knows in 10 to 20 years. 

Still today Cloud storage does offers a tempting solution for long-term record keeping.

Summing up:

Overall my preference would be to burn two copies of my business records into a good quality DVD. Put them in my business records in a safe place in my house in a box as here

and put somewhere in a safe spot in my house. I would then put on a free sevice like Google a copy which I could access anytime, anywhere.

Want to get your data storage sorted? Contact us for a free consultation!

The Australian government passed a new workplace law for the right to disconnect. This means employees can ignore calls, emails, and messages from their employer outside of work hours without fear of punishment. This is a significant change that all retailers need to understand.

How the Right to Disconnect Works

While details remain to be determined, the law means staff can't be penalized for reasonably not responding to calls, emails, etc. during off hours like nights, weekends, and PTO.

What does it reasonably mean? No one knows yet still.  

Key points:

• Employers cannot fine or discipline employees for not responding after hours
• Employees can seek orders from the Fair Work Commission to prevent punishment
• Employers could be fined for breaching these orders

Although I doubt it will help us, most of us are surprised as this proposed law is much less strict for employers than passed in some European countries.

Why This Matters for Retailers

For retailers that operate physical stores with set opening hours, the immediate problem may be that the right to disconnect will have enormous implications for scheduling staff and communicating about shifts.

Retailers will need:

• More carefully plan schedules in advance
• Possibly limit last-minute schedule changes
• Outline exceptions for emergency contacts

Exactly how it would work, of course, remains to be seen as what parliament said, what the courts say, etc; remains to be seen.

What retailers need to know

Hopefully, the retail industry groups can get feedback on what retailers need to know.

• Definitions around what is "reasonable."
• Clarify how far in advance schedule changes will be communicated
• What constitutes an emergency exception?
• What happens when a shift swap occurs?

Rostering With the Right to Disconnect

Our rostering software needs to be amended, but we are unsure exactly how. When the details come up, I can tell you more. If you have any ideas or requirements, please let me know.

With some forethought and policy updates, retailers must know how to comply with the new right-to-disconnect laws.

Selling a business means handling your company data carefully. Privacy laws make transferring data complicated. But it's not just laws - most Aussies respect people's privacy rights. Sellers want to follow rules and do the right thing with private details. Plan properly - get legal advice, discuss needs with the buyer, and develop a privacy-protecting transfer plan. It takes effort, but respect staff and customers.

So we have today a headache for many businesses selling up. 

One country newsagency that recently just sold her shop describes to me her situation:

"We had decades worth of customer purchase records and email lists that the new owners wanted as part of the sale. But with the Privacy Act, I had no idea if we could legally hand that data over or not without customer consent. It was very tricky trying to figure it all out."

Buyers Require Notification of Data Details

The buyer will need and is entitled to be notified by the seller about many necessary details of the data relating to the transferred business. What they should get:

• The types of data included in the sale
• The purposes for which the data was collected
• How it is being used now.

Now, the Sale Contracts Should Address Data Transfer

In the past, business sale agreements typically included provisions for transferring assets, including any data owned by the business. The purchasing company would gain legal ownership and rights to use the data unless otherwise specified in the sale contract, which protected the business. This is all well and good, except with the current privacy laws, it's unlikely that a company being sold could claim this as protection if the data were not allowed to be transferred. Suppose the business data includes any personal information. If required, it may require notifying individuals that their data is being moved to a new business.

Remember, it does not matter what the contract says if it is illegal. It may still be a crime.

Still, the old owner would still be better off if the sale agreement outlined relevant data handling protocols, access control procedures, and compliance requirements on the transferred data, even if its terms were dubious. This provides legal clarity.

Employees

The laws about employee records are incredibly unclear. My understanding is that they are exempt from privacy laws in most cases. However, this is now being reviewed. I know its quite common today for a buyer to take responsibility for many existing labour regulations. To do this, they need the info. I have no idea what to do here if a buyer needs details about them.

Here are some steps I would suggest.

- Keep a copy of your data. You never know when you need it. I have seen court cases requiring information twenty years ago.

- Get professional advice on what needs to go. If you use a business broker, consult them; it should be part of their services and get the answer in writing.

- Many do not transfer any individual data, but this may be a problem if debts are being sold. 

- Consider getting the consent of the individuals whose data is being transferred, if required by law.

- You may consider giving the buyer a summary of non-identifiable data.

- Ask us how to get rid of it safely. We will not do it, but we will explain the steps. 

- Make sure that you make sure the data is transferred securely.

Conclusion

I hope this is of help, as selling business data in Australia now poses headaches around legally and ethically handling customer data transfers to new owners.

Disclaimer

As a businessman, programmer and blogger, I want to be upfront - I don't have professional qualifications on these issues. I'm sharing what I've been told and had explained to me by people I trust. This isn't professional legal or financial advice. It's me trying my best to be helpful and honest, with no formal expertise. Please don't treat this content as expert counsel. It's provided in good faith but not as formal guidance.

This problem occurs pretty regularly and does cause disruptions. While purchasing or selling a company are major milestones, owners can often get caught up in the excitement of closing the deal. In their eagerness to complete the transaction, some key details can fall through the cracks.

The reality is that meticulous diligence separates the pros from the amateurs.

As someone who has seen these issues arise often. It was not minor. I have seen settlements blocked and legal letters go out over this, so I want to share advice on what to watch out for when buying or selling a business.

Your POS Software Licenses do not Automatically Transfer to the new owner.

One common problem is in the software licenses. One problem is that your computer software, which in our case, and almost everyone else's, is sold under license. Now almost all businesses use software licensed to the company, not individual users. So if ABC Pty Ltd buys a business software license, ABC Pty Ltd has the right to use that software. If ABC Pty Ltd sells the business to XYZ Pty Ltd, the license stays with ABC until the software vendor is notified. The new owner won't have usage rights, which could severely impact operations. People today are very reluctant to give people they do not know access to what is often personal data.

If you've bought or sold a business, notify your software vendors to transfer licenses. Please don't assume it's automatic, or you may face disruptions as the old software owner must consent generally in writing to any license transfer.

Watch Out for These Common Issues

Over the years, I've seen many software license problems crop up during business transitions:

• Former owners demanded additional compensation for software after the sale.
• Buyers requesting refunds for software licenses that weren't transferred.
• Disputes over unpaid software debts.
• Vendors delay support until the old owner approves a transfer.
• Vendors are unsure who to contact about licenses and renewals.

Thoroughly documenting and communicating license transfers avoids headaches for everyone. Don't leave details unclear or assumes someone else will handle it because you may not like how they handle it. 

Frequently Asked Software Transfer Questions

Here are some common questions about license transfers:

• Do old owners need to sign transfer forms? We prefer it but don't require it if other proof of sale is provided.

• Can transfers happen on weekends? We don't process customer changes on weekends or public holidays. Let us know if the transfer occurs at least one business day before.

• Is a new credit application required? No, we don't need a new credit application just for a transfer.

Being aware of license transfer issues goes a long way. Both buyers and sellers should confirm software ownership details to smooth the transition. Let me know if you have any other questions!

In California, United States, a masked man entered a 7-Eleven store, grabbed a trash can, and started taking tobacco products off the shelves in an attempted robbery. An employee tackled the man to the ground while another employee grabbed a wooden pole and repeatedly struck the suspected thief nearly two dozen times.

A video of the incident exists and has gone viral online, garnering millions of views, but it is age-restricted. Those interested in seeing the video can find it here.

The employees were initially seen as courageous for protecting their store against the robbery. However, it can be argued that the repeated beating they inflicted on the shoplifter was excessive but as the saying goes, it is better to beat the threat decisively in self-defense and deal with legal repercussions later, rather than end up dead.

Lessons for us from "Pepsi, Where Is My Jet?" Netflix Documentary. Often it's easier to learn from examples of what happens when something goes wrong. So if you have ever wondered what happens when an advertisement goes wrong, try watching this Netflix documentary "Pepsi, Where Is My Jet?" The film tells a true story of the disastrous consequences of a marketing blunder that led to a significant legal battle. It's a great example of why we must properly run our marketing campaigns.

The Story 

The documentary starts around a Pepsi ad campaign launched in 1995. The campaign allowed customers to collect points from Pepsi products and redeem them for prizes such as T-shirts, sunglasses, or CDs. The campaign featured a series of humorous commercials that showed prizes such as a leather jacket worn by Cindy Crawford, a life-sized replica of the Statue of Liberty and a military Harrier jet fighter. 

To get the jet, you needed to collect seven million points. The commercial offer of a jet was meant to be a joke. Unfortunately, Pepsi lacked a disclaimer indicating that the jet was a joke. Now there is always someone looking for a loophole.

After doing some figures, a young student saw the commercial and initially determined that with $5 million, he could win the jet worth about 30 million dollars. After discussing it with a few people, he reviewed his calculations and found that he could do it with much less. He only needed $700,000 to get the jet. He convinced an investor to help him raise the money and sent Pepsi a check for $700,000 along with 15 Pepsi points (the minimum required) and an order form for the jet.

Pepsi refused to honour his request. They argued that the commercial was not a serious offer in a dismissive letter. This was stupid and aggravated the situation. Then it escalated after Pepsi then made a low offer that was rejected. Soon, the student sued Pepsi for breach of contract, fraud, deceptive and unfair trade practices, and misleading advertising. Soon the matter went to the public, where it went viral.

I will not say more about the plot not to spoil those who want to watch. Sufficient to say the ending shocked me.

The Importance of Marketing Compliance

Someone took Pepsi at its word for what Pepsi thought was a joke. If someone can make an argument, someone may do so. So clearly, there were severe issues with Pepsi's marketing, which shows just how important it is to meet marketing compliance. You want to ensure your ads aren't making false promises or tricking people, even as here by accident. Plus, no matter who wins or loses, you do not want customers to feel deceived and let down by your actions.

My view

Watching 'Pepsi, Where's My Jet?' was fun and exciting. Both sides made mistakes during the situation. The film is worth seeing because it provides valuable insights into the issue and is entertaining. 

If you charge a surcharge on debit and credit cards, you are required yearly to do a review to justify your surcharge at the end of the financial year. The results from this evaluation will be used as a basis for setting your surcharge for the upcoming year.

What to Consider Before Surcharging

Several essential aspects must be considered when deciding whether to put surcharges in place. These include the potential benefits and drawbacks of such a policy, which must be evaluated before making any final decision. Some key points to keep in mind when assessing the feasibility of surcharging include:

Industry practices

Do your competitors or peers surcharge? If not, you may lose customers or reputation by being the only one who does.

Competition

How price-sensitive are your customers? Will they switch to another shop if you surcharge? You can test the market reaction before implementing surcharging for a short period as a test.

Customer impact

How will the surcharge affect your customer experience and satisfaction? Will it cause confusion or frustration at the point of sale? Will it discourage impulse purchases or upselling? You should communicate with your customers about why you are surcharging and how they can avoid it.

Customer loyalty

How will the surcharge affect your customer retention and loyalty? Some customers may be deterred from purchasing at businesses that charge a surcharge. It can be especially true if they feel unfairly charged or have better alternatives elsewhere. Consider how surcharging impacts your long-term relationship with your customers and bottom line.

Myth

Refrain from believing customers do not care if it is charged. We have done studies that show customers do care.

How to Surcharge in Australia

If you decide to surcharge, you must follow the rules and regulations of the Reserve Bank of Australia (RBA) and the Australian Competition and Consumer Commission (ACCC). These include:

• The banks will do the calculation for you, but what is a frequent complaint is that many of the fees the banks need to take into account. So it is worth getting the bank to do it and then reviewing the figure. Keep the calculation in case you get asked to justify it.

• Based on last year's figures, this review must be done by 1 September.

• It would be best to display signage to inform your customers about the surcharge before they pay. The signage must specify each card type's surcharge amount or percentage.

BNPL

You better check with the BNPL provider you use. Often, providers enforce a "no-surcharge" clause, prohibiting you from passing on their cost to your customers.

For example, Afterpay states

Surcharges. You must not impose a surcharge on the customer or discriminate against the customer in any way for using Afterpay as a payment mechanism. A surcharge includes any charge or increase in the sale price, shipping costs or any other Customer fees and charges that are applied because the customer has elected to use Afterpay as their method of payment. For example, You must not charge the customer a fee in addition to the Sale Price (and any applicable Shipping Costs) on the basis that the customer has elected Afterpay as their chosen payment method. Similarly, You are not permitted to charge a fee (i.e. a restocking fee) to the customer where you accept a Return for a Refund on the basis that the customer's chosen payment method was Afterpay. For in-Store transactions, You may pass on to the customer a surcharge to recover the cost of accepting Mastercard transactions, or such equivalent costs of any other relevant card scheme utilised by Afterpay to facilitate in-Store transactions, if required by Your policies and in accordance with Relevant Law.

So the most expensive acceptance method is the dearest to you in fees. This may present a problem as the customer will know they pay no surcharge on BNPL and must pay it on a credit or debit card.

Conclusion

Surcharging is a viable option for businesses that want to recover their processing costs from their customers. But, it is not a one-size-fits-all solution and requires careful consideration and compliance. Before you use surcharging:

• Make sure you understand the benefits and drawbacks.

• Assess your business situation and goals.

• Follow the rules and regulations in Australia.

Don't hesitate to contact our support team if you have questions about surcharging or need help setting up your payment system. We are happy to assist you.

The check, once a staple in Australia, is becoming outdated. Although there are no current plans to phase out checks in Australia, the signs show we are abandoning cheques. 

The decline of checks in Australia

Monthly cheque usage has been steadily declining over the past 20 years, with some of the biggest decreases seen in recent years. Latest figures from the Reserve Bank of Australia show that cheque usage was down 17.8% for the year ended June 2022 and 18% down for the same period in 2021. With such a downward trend, does this mean a cheque-less society is on the horizon? Click here.

As some of my clients point out to me, cheques have already been basically phased out in New Zealand.

Let us here discuss some of the effects on retailers.

> The fact is that cheques are less convenient than electronic payment options for retailers. Cheques can take days to clear, and there is always the risk of being stolen or lost in the mail. Banks sometimes dishonour them for various reasons e.g. the signature does not match what was on file. But, electronic payments are instantaneous, verified and can be made from anywhere at any time.

> Another problem is that some financial institutions no longer accept or take them reluctantly. Some banks have stopped issuing chequebooks as part of their account packages. Others will no longer accept foreign checks. One of my clients had to get a special arrangement for banking as they get foreign cheques.

> Many customers, mainly oldies, still prefer to pay using a cheque. These people may go elsewhere if you refuse to accept their cheques. As long as someone else takes them, we have to take them.

> Government departments and some larger organisations still want to pay by cheque.

Conclusion

Although Australia has yet to make any current plans to phase out the use of checks, their use will continue to decline over the coming years. I would wait to consider getting rid of them.

Executive Summary:

• The use of cheques in Australia is declining, with figures from the Reserve Bank of Australia showing a 17.8% decrease last year.

• While there are currently no plans to phase out cheques in Australia. Although some financial institutions are no longer accepting them.

• Electronic payment options are becoming more popular due to their convenience, speed and security.

• Some customers, particularly older ones, still prefer to pay by cheque, as do some larger organizations, e.g. government departments.

We have been asked to notify our users,  many of who were affected by the outage to Tyro’s EFTPOS facility in January 2021 

A proposed Tyro Class Action has now achieved a proposed settlement which, if passed, will see Tyro compensate many of those that suffered loss or damage due to this Outage.

The full text of the proposed settlement is here.

The key points, I think, are

> Tyro does not admit any fault.

> Tyro will pay $5 million.

> If I read it right, the lawyers of CHC are asking for about $3 million from the $5 million, and the rest will be distributed to people affected.

> It is impossible to estimate how much those affected will be paid accurately. 

If you feel you were involved and are unsure if you are in this settlement, contact CHC immediately.

Bannister Law Class Actions

ADDRESS: 74b New Beach Road, Darling Point Sydney NSW 2027

Email: [email protected]

Tel:  02 8231 6529

Note: Our understanding is that you cannot claim here if you took our advice and accepted the tyro terms earlier as you have "validly opted out of the Tyro Class Action (that is, by filing an Opt Out Notice before 30 October 2022, unless the Court orders otherwise)"  but there is nothing to stop you contacting CHC to confirm this fact. If so please let me know what happened.

When valuing a business for resale, particularly at the time of sale, one problem that sometimes appears is the Breakage Revenue.

What is Breakage Revenue?

When you issue points or give discount vouchers to your customer through your loyalty program, strictly in accounting, you should deduct the value of these items from your sales. Say you issued today 1,000 discount vouchers at an average price of $2; then you should remove $2,000 of sales revenue from your books. This is the Breakage. Now as the vouchers are claimed, the value comes off this Breakage. So say of the 1,000 discount vouchers issued, 50 are claimed, well now $100 comes off the $2,000, so the amount outstanding is $2,000-$100= $1,900.

As only a few discount vouchers are claimed, and most expire, this is often ignored except when the business is for sale.

The Breakage must be resolved to ensure a fair deal for all involved in a business transfer.

Valuation of Breakage Revenue

Taking the example above, it is quick to see that the figure is not trivial. If we assume these discount vouchers are claimable for 30 days, then we have outstanding about 30 x 1,000 x $2 = $60,000. What do we do with this figure? Remember, only part will be claimed in reality, but who can say what a fair figure is at the time of sale?

Compliance with legal and regulatory requirements

After the business is sold, all valid discount vouchers are likely an obligation on the new owners, but often the old owner finds that they have to reimburse that amount. So the new owner said 5,000 were claimed, so he wants $10,000 from you.

Also, if the old owner has claimed the Breakage in their tax return, I don't know what the ATO would do if they made an audit of the business. You need to check this too.

The best treatment for Breakage Revenue

Some people avoid the problem by stopping 30 days before the transfer and issuing these discount vouchers or points. A better solution is to give discount vouchers that can only be redeemed before a specific date, the transfer date or 30 days, whatever is earlier.

Customer Perception

The issue of customer perception is the final one. Adverse publicity and company reputation damage can result if customers believe their discount vouchers are devalued. There are good marketing reasons why these discount vouchers were issued.

We provide you with a scientific approach to collect data on how your customers use your loyalty VIP program to comprehend its impact better. By analysing the sales data on your customers' purchase histories, you can determine the effects of your loyalty VIP program. Doing this lets you decide what kinds of goods or services are being bought, how often they are bought, and other important metrics that will help you make better decisions about your program.

The "loyalty vs. non-loyalty sales" report, highlighted in green on your cash register reports, is one helpful report to examine.

It is best to keep things straightforward and select the most recent year's data to analyse. When you run the report, a list of items purchased by regular and devoted VIP customers can be compared.

Pay close attention to the profit section because VIP customers account for over a third of a modern retailer's profit. They also typically generate more revenue per visit than regular customers.

The percentage of gross profit is another important row to consider. This row highlights VIP customers' high-margin purchases, which may help locate new products to offer only to VIP members.

Last, examining the cost row to determine the exact costs associated with your VIP clients is essential.

Summing up

Consideration must be given to the valuation of Breakage, its treatment in the sale agreement, compliance with legal and regulatory requirements, and customer perception.

As always, when selling a business, I recommend that you seek professional advice to ensure that all issues are appropriately addressed.