Banks can have a way of making small businesses feel a little pinned down. Small-business owners have a lot on their plate, from managing cashflow to everyday operations, it’s all too easy to avoid checking if there are better deals in the market for business expenses.
But as the 2020s bring extraordinary change, businesses are looking for ways to save smarter; and one thing they should be considering is their EFTPOS provider. In fact, four in five businesses are considering switching their EFTPOS provider and in the process could save thousands of dollars in merchant fees by avoiding bank pricing models.
Unpacking merchant fees and finding the best solution
Every time a customer uses a credit or debit card to purchase, the merchant is charged a number of complex fees. If they use a bank’s EFTPOS system by default, they’re tied to their payment structure, on the bank’s terms. Some businesses are absorbing up to $5000* per year of their sales in these fees. But who wants to be punished for their business doing more transactions? There is an alternative.
Smartpay gives small businesses a choice in managing these transaction costs, either a Zero Cost EFTPOS or a Simple Flat Rate solution.
Smartpay customer Suzi, manager of the Wallis Lake Fishermen’s Co-op warns that bank fees can really add up.
“A small percentage fee on each transaction doesn’t seem like a big deal, but you add it up over a year and it’s significant,” she says. “We were paying $12,000 to $15,000 each year just on EFTPOS bank fees.”
Smartpay’s Zero Cost EFTPOS solution automatically calculates and passes on the transaction costs, simplifying the process and keeping prices competitive.
Smartpay’s Simple Flat Rate solution is the other option. Locking in a Simple Flat Rate means their budget isn’t derailed by unexpected EFTPOS fees.
Applying one fixed rate on either product takes away the need to decipher multiple merchant fees across different card types and the same bill at the end of the month makes reconciliation a breeze.
Customers supporting their local community businesses
It’s no secret that many small businesses have struggled during the pandemic. But with that struggle has come positive consumer sentiment towards shopping small and keeping it local.
Peter Thomas, Smartpay’s Chief Customer Officer, says research shows customers are happy to pay a higher cost to support small businesses and keep them open.
“Consumers are usually more than willing to absorb the minimal EFTPOS cost. They understand the choice between covering this small cost or having to pay more for their purchases across the board when businesses increase prices to cover their merchant fees,” he says.
“Contactless payments are more popular than ever thanks to COVID-19 – so bank EFTPOS fees are increasing for some businesses. Customers understand that access to that tap and go technology is non-negotiable.”
Bounce back better
Nobody wants a fuss and small businesses don’t need to go through the hassle of changing their business bank account to use Smartpay’s solutions. They are all about EFTPOS payments, it’s the core of what they do.
Smartpay wants small-business owners to get a better deal on their EFTPOS so they can take control of their budgets, pricing and keep investing the savings into their business and community.
* Canstar Merchant Services Survey, 2018