Best EFTPOS deals for small business

Business is all about the bottom line, and merchant services are crucial in helping small Australian businesses maximise their potential. Card payments are easy and convenient, and the last thing you want is to lose a customer just because you couldn’t facilitate their payment method. But not all merchant services are the same, and business owners need to be conscious of getting a good deal from their bank.

That’s why Canstar Blue annually surveys hundreds of small business owners and key decision makers to find out how they rate their merchant services provided by a major bank. In 2016 we’re able to report that ANZ has been rated highest of the four major banks, with five-star reviews in almost every category, including overall satisfaction. It also achieved the highest satisfaction rating in terms of fees.

Merchant services fees and charges

Lots of factors are important in determining overall satisfaction with a merchant services provider but when you’re considering your options, it’s important to fully understand the fees and charges. Merchant service fees are made up of several fixed and variable components. The fees are usually based on the number of transactions per month and can vary between types of businesses. As an example, Westpac lists the following ‘main monthly fees’ that apply to all:

• Credit card merchant service fees
• Interchange fee
• On charge scheme fees
• Participation fee
• Terminal access fee

In addition, numerous other fees may apply, including an installation fee, establishment fee, excessive chargeback fee, minimum merchant service fee and closure fee.

EFTPOS minimum spend

Almost half of small business owners and decision makers reported there is no minimum spend when customers use their EFTPOS facilities (49%). However, 20% said customers need to spend $11 or more, 22% ask for $6 to $10 and 5% allow payments of between $1 and $5.

Interestingly, 4% didn’t recall what their minimum payment is. That may sound surprising but around one-third (32%) of respondents admitted they have considered removing their EFTPOS terminal because it isn’t used often enough. They will, presumably, be the same people who told us the majority of their business is cash-based (35%). On both counts, this is particularly true for sole traders (41%).