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Eftpos

POS SOFTWARE

Tyro eftpos

This is something you need to investigate whether all least-cost routing for payments are the same in each bank? 

In our market space, we were the first to push 'Least-Cost Routing', saving our clients a lot of money. The idea was that as your customers electronically paid you with Visa and Mastercard, there were many paths through the bank system where the payment could go, so Least-Cost Routing selected the cheapest path that reduced interchange fees and card payment fees. As such, the merchant saved money.

That is all good.

However, recently, some banks have introduced a Merchant Choice Routing service and stated that it is the same as Least-Cost Routing. Allow me to have my doubts. Merchant Choice Routing allows you to select the path of the funds manually, either through EFTPOS or credit, which you put in advance, which has been purely a customer choice up to now. The problem here is that different card transactions have extra costs depending on the amount and the card.  

A big problem is here. 

Let us make a simple example. Say you pay a 1.5% transaction fee for Visa and 10 cents if it goes in as an EFTPOS. I know it's more complex than this, but please let us keep it simple for now. 

So a contactless purchase on a Visa debit card would cost $0.15 (1.5% of $10). If Merchant Choice Routing is activated, the same transaction would cost $0.10 via EFTPOS. The transaction is processed through EFTPOS, and it attracts a fixed debt service fee. So you have lost. If your card payment amounts vary greatly, and everyone's amounts vary, these losses could mount up. You may find that with Merchant Choice Routing, your bank fees increase. 

Another problem

Also what happens to a payment going through a VISA or Mastercard? Is it being least-cost routed? I am looking at one bank statement for one of my clients; I do not see it.

Have a chew on this, please, and see what the score is with you.

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Easter and Anzac Day often muck up settlement dates for EFTPOS. Tyro has released its expected settlement dates for customers who settle into an external bank account.

If you are not using Tyro, they are running a good special to introduce new people to them, let me know if you are interested.

 

 

 

 

 

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For people not using Tyro, you can get 12 months’ free EFTPOS machine rental for up to two machines if you apply by March 31st, 2022. That is a pretty good offer, all right.

If you want to learn more, please click here.

It comes with full integration, too, which means rather than having a separate unit independent of the point of sale, this integrates the EFTPOS into your point of sale software. One big plus is that it reduces operator errors by eliminating double data entries and re-keying errors from manual entries on the EFTPOS. So no more accidentally keying into the EFTPOS terminal $20 instead of $50.

It also improves speed. As you can see, a Tyro Efpos (dark blue) takes just a fraction over a second on any day of the week. This is the fastest EFTPOS, I have come across.

 

 

If you do not have it, I suggest you try it out. 

What it will do for you is give you a seamless transaction process, speedy payments, and easy reconciliation!

If you want to learn more, please click here.

For full terms and conditions, click here.

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Many people are now starting to get new rates.

The good news is that the increases were less than most were expecting. There was also no surprise that nothing went down. The big problem is the Visa/Mastercard international and premium cards. I wish the ACCC would do something about these. It is unfair that the merchants have to pay for the customers premium cards. Merchants should be allowed to charge by payment category as there can be a wide range of fees on any card. 

What I did was constructed a table of costs based on our rates. 

On the top is the transaction amount and the costs are listed on the table


 As you can see, you can get a lot of savings by pushing different payment categories. Also, as important as dealing with low margin items that many of my clients do, you need to check that your margins cover the commissions. 

Of course, many other fees can come into the equation not listed here, e.g. rentals, reporting fees, chargeback fees, etc. But these are the subject of another post.

If you want to discuss with us your EFTPOS/Credit fees situation and if we can help you, well we are always willing to talk.

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A customer pays for a sale with their EFTPOS card. Something goes wrong and the operation is refused. The EFTPOS terminal beeps. Sometimes the customer thinks the transaction has gone through. They pick up the items and go. It happens quite a bit. 

If you do not have an integrated EFTPOS solution, you will never know what has happened.

You need an integrated EFTPOS solution.

 

 

 

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As always, as we approach Christmas, this is when the EFTPOS suppliers come up with some fantastic bargains. They know this is their last chance to get your business for quite some time. Plus they know that now your business EFTPOS is more valuable as both your turnover and basket size is higher.

That's why we can offer our customers sweet deals now.

Please let me know if you are interested as we can give you a few more options.

You do need to move quickly as the 1/ Dec /2021 is the cutoff date. Nothing we can do about that, bank policy.

 

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Here is yesterday's graph of the NBN internet reliability, today I bet it will not look much prettier. Not good if you consider that an internet connection is essential today. Yet, the reality today is that despite so many internet claims, outages are a regular occurrence.

Facing this unlike so many other POS systems, we do offer a local mode.

- This means that you can accept EFTPOS payments while the internet is down.

- You can operate your POS system almost as usual until the internet is back up.

What happens is that your data will be stored locally, then it will be automatically synced when the internet is back on without any user interaction.

So with our POS System, unlike so many others, you don't have to worry about losing your internet connection.

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From April 2021, Afterpay had a card that is a contactless Mastercard so you need no integration into your point of sale.

Note your EFTPOS machine will need to accept Paywave Mastercard and I know Paywave is an extra expense. 

To process, you will need to get Afterpay permission to become an Afterpay approved merchant. 

If you are interested, you need to go here and provide details like your EFTPOS terminal details. 

Once accepted which does not take long, then when you get an Afterpay transaction, your funds are settled like any other card payment.

Clients of ours doing this have reported that it is easy and straightforward to use and it is fulfilling a need for many consumers.

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Local mode EFTPOS means if your internet line or telephone goes down, the EFTPOS can still work. Today's problem can be in various systems, e.g. Telstra, NBN, the bank, etc. and any one of them can cause the EFTPOS to stop. Then there is nothing anyone can do to help till it's fixed. The problem here is that every minute of downtime means to you much of that minute of lost revenue.

Make sure your EFTPOS has local mode.

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I have now clients that are doing much of their business with a Buy Now, Pay Later  (BNPL) service. They have little choice as most users of BNPL have stopped using their credit card to spend goods. It makes sense if you hold a BNPL account and say you buy $20 in a shop on EFTPOS, they get surcharged 50 cents, so it costs him $20.50, and they have to pay now. If they buy the same product with a BNPL card, they get it for $20 and gets up to eight weeks to settle. 

The retailer's problem is that the current business model of the BNPL is to charge the retailers the fees. Then demand that the retailer does not pass on these costs. So to the retailer, the immediate problem with BNPL is that they are losing between 3 to 7 percent.  Many products my clients handle cannot afford these fees. 

For some items like Lay-by, most retailers, I see, will accept this loss. This is cheaper than monitoring the Lay-by, plus it avoids the current legal minefield of Lay-bys.

This is about to change with the Big Banks coming in. What the banks will be offering is a much bigger mass distribution of BNPL. According to the CBA bank, they will do a check on someone. If that person is seen as a reasonable risk, which seems to be everyone with an income source, they will offer them a BNPL option. If your customer uses this option, which I believe will work on your existing EFTPOS system, you have no added fees to you, the retailer. I am not sure whether you will know your customer is using BNPL.

If so, the retailer is looking at the BNPL market doubling in size and the fees coming down massively.

It is going to be big!

I did bring up with the CBA but did not answer is many products are not allowed with BNPL, e.g. live animals. We had to change our systems to make BNPL work because of this. Will they be permitted with commbank BNPL? Who knows? If the retailer does not know BNPL is used, how do they enforce this ban?

 

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