The use of cash is becoming less and less popular in Australia. Instead of, Australians are increasingly using debit and credit cards, and other payment technologies they find more convenient. What does this mean for your business?
This may mean that to provide a convenient experience for your customers, you need to merchant services and/or other payment methods that fit their needs and your business model.
What are merchant services?
But first, let’s quickly explain what merchant services are.
Simply put, it’s a range of services that process payments on behalf of your business, depositing them into a linked business account. Every time you pay for your morning coffee at an eftpos terminal, you are paying for a cafe that has set up a merchant facility to handle the financial transaction.
New payment systems like Osko and PayID, or existing systems such as BPAY® and PayPal, are other ways for your customers to pay you. There has also been a huge increase in new online payments in recent years that can help your customers quickly purchase your goods or services without leaving your website.
Benefits of Merchant Service
It’s a convenient and seamless experience for your customers in a way that works for your business model and allows you to pay efficiently. For your business, merchant services can help you provide better customer service than the cash and check transactions of the past. The use of merchant services could:
- Reduce the risk of problem checks
- Make transparent and smooth payments
- Assistance with cash flow and record keeping.
With a merchant facility, all customer payments and costs are usually managed directly through your linked business account. Using Merchant Services also typically gives you:
- A portable terminal for fast payments
- High-speed transactions and printing
- Network coverage for 98% of Australia
- Secure authorization to reduce the risk of fraud.
Choose Merchant Services
But how do you choose a merchant service that’s right for your business? There are many different options offered by Australian financial institutions, established software companies and startups.
Here are some key points to keep in mind as you do that research and shop around. Find:
- How your customers prefer to pay
- Any upper transaction limit
- Different transaction fees.
Merchant and payment options – at a glance
- mobile eftpos. This portable terminal allows customers to “tap and go”. It has an integrated printer and a color touch screen.
- Payment ID. With PayID, your customers don’t need to know your bank account and BSB details to make a payment. The funds arrive quickly in your account.
- PayPal and Bandaged. Alternative options include PayPal and Stripe which process payments for online businesses, with transaction and service fees*
Fees for merchant services
There may be several different pricing structures depending on your business and facilities: a busy restaurant where people pay at different tables will need more terminals than a newsagent where everyone pays at one checkout. This is why most establishments, including Newcastle Permanent, offer different package options.
It is common for banks to charge a small monthly rental fee for the capped amount of turnover and additional fees for additional terminals. Banking institutions will also charge a percentage fee for any transaction that exceeds this monthly limit. Talk to your financial institution or our Business Solutions Team, for more information to find the right solution for your business.
