Making the switch – getting a better deal from your EFTPOS provider

It’s rare in business to weigh up options only to find that one choice clearly has no downside. Switching from bank-provided EFTPOS and upgrading to a dedicated EFTPOS specialist, however, is certainly one of those all-win opportunities. With SME businesses now transitioning to the new normal and the gradual recovery of in-person shopping, it’s now high time for these merchants to revisit their business expenses in favour of a better deal and do away with complicated fee structures and unpredictable monthly charges associated with legacy bank EFTPOS terminals.

“A recent Canstar research report found three out of four merchants are unhappy with their current EFTPOS solution, but only one in four ever change,” Peter Thomas, Chief Customer Officer at EFTPOS provider, Smartpay, says. “The market is dominated by bank-issued terminals, and most people think that if you change out your EFTPOS, you’ve got to change your bank too. It’s actually a much smoother process than that, and there’s no need to change your bank account at all. This is just one of the mistaken reasons why people won’t switch even though they’re unhappy, when it’s actually super easy – and once your application is approved, generally you usually can have your new terminal within two weeks.”

Smartpay’s EFTPOS solutions address a range of issues linked to traditional systems, not least of which are the variable card transaction fees that depend on the type of cards customers choose to pay with. Banks issue premium cards to end consumers who love their reward points, but it’s business owners that usually end up paying higher percentages on those card transactions, meaning they could face higher-than-expected EFTPOS bills even during a low-turnover month.

It’s this dynamic that Smartpay’s offering serves to disrupt – giving merchants the choice between a Simple Flat Rate with a simple percentage based only on sales volume, or a Zero Cost EFTPOS option where 100 percent of all involved costs are covered by a small customer surcharge.

“With the Zero Cost EFTPOS product, the merchant can lease the terminal for free,” Thomas explains. “We find most SMEs choosing that option are usually in the service industries where surcharging is common practice – such as hair, beauty, food services and hospitality – who otherwise could be paying thousands of dollars in fees every year to the bank. The research shows overwhelmingly that consumers not only don’t mind the small surcharge, they’re usually more than willing to pay to support local businesses. Retailers, on the other hand, often choose the simple flat rate, so no matter what their transactions are in a month they know they’ll pay the same small percentage.”

Beyond the favourable product solutions, working with an independent EFTPOS specialist leads to better and more dedicated customer service. Smartpay offers 24/7 support, 365 days per year with a direct customer support line – the kind of attention banks can’t offer from their contact centres that are also handling queries for other business banking products. Smartpay’s free upgrades and easy replacements also ensure merchants are covered from a security and safety perspective if anything goes wrong with the terminal device. SMEs can be confident about the stability of the company too, with Smartpay already serving more than 30,000 SME merchants across Australia and New Zealand, having been in the business for more than a decade.

With no difference to the consumer experience and everything to gain for the SME, it remains to ask the question, why are business owners hesitant to make the switch? Most businesses and individuals are familiar with the concept that switching a utilities provider can result in significant savings, which is exactly the same for business EFTPOS. Merchant fees can be lower or in some cases non-existent by switching to a non-bank provider like Smartpay, it’s often just a matter of taking the time to call. While people might expect there’s a barrier around the ease of switching or any business disruption, with Smartpay the changeover is very quick – SMEs keep their business bank account and can have the EFTPOS terminal in very short order and be paying zero merchant fees from that point on – which for most business owners is a pretty exciting proposition.

“What is really interesting is that a lot of the merchants we talk to actually don’t pocket the savings,” Thomas says. “They put the savings back into their business – that could be hiring more staff, putting it into marketing to attract more people or setting up a loyalty programme to reward their customer base. So, not only are they saving costs, the consumers can see the benefit, and they’re supporting their local businesses at the same time. It’s a pretty exciting proposition for businesses wanting to grow.”

To find out how you can “Make the Switch” to Smartpay and save on your EFTPOS bill, click here.