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Reducing the cost of receiving cashless payments

1 March 2023

Whatever goods or services your business offers, you’ll have noticed that it’s now the norm for customers to use cashless payments. Traditional credit and debit cards have been around for a while. But customers now commonly pay via smart devices, as well as using newer cashless options such as UnionPay, Alipay and JCB.

So that you're not turning customers away, it's important to be able to receive a wide variety of cashless payments. This may however mean that your business is paying more in transaction fees and other costs. But there are some tricks that can help you keep these costs down.

EFTPOS Machines

To make sure our business customers can accept many forms of cashless payments, Bendigo Bank powered by Tyro is an innovative solution providing electronic payment services including EFTPOS machines.

Different businesses have varying requirements from their EFTPOS solution, with a range of devices available to meet these needs. These include countertop and mobile EFTPOS machines, and the Go EFTPOS reader, which is a small portable machine. There are simple, flexible payment options to meet the needs of businesses, and help save customers time and money.

Transaction Fees

Every time a customer makes a payment through an EFTPOS device, the business is charged a transaction fee. The fee amount will vary depending on the card types your customers use. For example, debit card fees are typically less than those associated with credit cards.

Through Bendigo Bank powered by Tyro, the Tyro Portal or Tyro App allows you to easily review how your customers are paying, and the costs involved. There are different approaches to reducing the costs of EFTPOS transactions for your business.

Tap & Save1 for cheaper debit card transactions

One method to minimise transaction fees is least-cost routing. This means that eligible contactless debit card transactions get processed through the cheapest network.

Bendigo Bank EFTPOS powered by Tyro customers can access Tyro’s Tap & Save feature. This provides least-cost routing on eligible contactless debit card transactions of under $1000. With Tap & Save, eligible transactions are processed through the lowest-cost network available, potentially lowering your acquiring cost.1  This may be able to save you money if you receive a lot of contactless card payments from customers.

Tap & Save is easy to set up, with seamless connection to your EFTPOS system and no activation fees. You can then monitor costs through the Tyro Portal, meaning it’s a simple way to make sure you don’t pay more than you need to.

Surcharging

Some businesses absorb the costs of cashless transactions. But others choose to add an extra surcharge for customers who use this payment method. Surcharging can be a way to recoup these costs to your business. Your decision whether to use a surcharge may depend on different factors. These could include whether surcharging is common in your industry, and the types of card transactions you most commonly process.

There are regulations covering surcharges. For example, you need to display signage informing customers about surcharges that will apply to their transaction. Businesses who breach these regulations can face compliance and enforcement action, such as fines, from the Australian Competition and Consumer Commission (ACCC). So, it’s important to get surcharge calculations right. Bendigo Bank provides guidance for businesses to help them enable surcharging but you should do your own research and, if necessary, seek advice. More information can also be found on the ACCC card surcharging website.

Through Bendigo Bank powered by Tyro, you can access tools such as an online calculator. These can help your business determine what is a reasonable surcharge for most cards.

Dynamic Surcharging2

Different payment methods have varied transaction fees. If you charge a single surcharge, it can’t be more than the lowest cost you incur for any single payment type.

Bendigo Bank powered by Tyro provides options to support recouping transaction fees with a range of dynamic surcharging options. It allows you to configure a surcharge rate in the Tyro portal for different payment methods. The EFTPOS machine will then automatically apply the relevant surcharge rate for many different cards. This may save you both time and money. As above, you will need to ensure that information about the surcharge your customers may pay is clearly disclosed.

Helping to build your business

Bendigo Bank powered by Tyro offers business customers tailored and convenient business services and products. These allow businesses to easily accept cashless payment anywhere with a WiFi/4G connection, while minimising costs. The machines integrate with over 330 Point of Sale (POS) or Practice Management Systems, and accounting software such as Xero3.

To find out more about options, make an enquiry today.


Any advice provided in this article is of a general nature only and does not take into account your personal needs, objectives and financial circumstances. You should consider whether it is appropriate for your situation. Please read the applicable product disclosure statement(s) on our website before acquiring any product.
1 Tyro does not guarantee any cost savings by opting in for Tap & Save. Savings on eligible transactions processed through the cheapest network vary for each business depending on their card mix, transaction volume and amount, industry, and pricing plan. Eligible transactions are contactless debit card transactions less than $1,000, but do not include some transactions using a digital wallet. Tap & Save is not available on Special Offer pricing which includes some flat fee simple pricing offers or where you surcharge on debit card transactions as cost savings may not be realised. For details refer to Tyro.com or call 1300 00 TYRO (8976).
2 Dynamic Surcharging is available for Mastercard, Visa, eftpos, UnionPay, American Express, JCB, and Diners Club on CounterTop EFTPOS and Mobile EFTPOS machines, and excludes Card Not-Present transactions.  By default, we do not include your EFTPOS machine rental costs into the calculation of your cost of acceptance, however you may choose to apply these costs into your calculation of your cost of acceptance via the Tyro Portal subject to the surcharging rules as set by the RBA and enforced by ACCC.
3 Xero is a trademark of Xero Limited.
Bendigo Bank EFTPOS and eCommerce powered by Tyro is issued by Tyro Payments Limited ACN 103 575 042 AFSL 471951. Bendigo Bank accounts are issued by Bendigo and Adelaide Bank Limited ABN 11 068 049 178 AFSL 237879.

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Bendigo and Adelaide Bank acknowledges Aboriginal and Torres Strait Islander peoples as the First Peoples of this nation and the Traditional Custodians of the land where we live, learn and work. We pay our respects to Elders past and present as it is their knowledge and experience that holds the key to the success of future generations.

Bendigo and Adelaide Bank Limited, ABN 11 068 049 178 AFSL / Australian Credit Licence 237879. Any advice provided on this website is of a general nature only and does not take into account your personal needs, objectives and financial circumstances. You should consider whether it is appropriate for your situation. Please read the applicable Disclosure Documents before acquiring any product described on this website. Please also review our Financial Services Guide (FSG) before accessing information on this website. Information on this page can change without notice to you.

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