Australians have embraced cashless payments as a fast and reliable way to shop, making more than 6 million1 EFTPOS transactions a day.
Here’s a quick guide to costs, benefits and what you should consider when looking at EFTPOS for your business.
There are a number of EFTPOS providers in Australia (including the four major banks), with varying merchant plans. Some will charge a joining fee, an annual fee and a monthly service amount based on how often you use EFTPOS.
CommBank does not charge a joining fee or annual fee and offer fixed rate plans (starting at $30 a month) to suit your business turnover. You also get one device at $0*. Alternatively, if you’re a member of a professional business group, industry association or buying group, you could qualify for discounted bespoke EFTPOS rates.
So, always look for an EFTPOS deal that works best with the sales volume and goals of your business. Think about whether you are going to charge your customers extra for using EFTPOS or have a minimum purchase amount to cover the payment solution’s costs.
What’s the value to your business?
- Increase potential sales
Customers find EFTPOS convenient as it means they don't have to carry large amounts of cash to pay for goods and services.
If the average bill in your business is higher than the amount of money people tend to carry in their wallet, then it might be impractical to refuse to take cashless payments. The Reserve Bank of Australia has looked at the way Australians pay for goods and services. How much cash do Australians generally have in their wallet? The RBA believes it’s about $55.
- Greater security
Businesses that transact in cash need to keep a regular supply of money in a register or on the premises. With EFTPOS transactions, a business is less likely to require large amounts of cash onsite, reducing its risk of being targeted for theft.
If you’re a business that prefers cash payments you could consider using EFTPOS for high-value payments or offsite transactions to avoid keeping too much cash on the premises or while on the go.
- Lower labour costs
As EFTPOS payments are lodged directly into your business account, this can create lower labour costs and improve security as staff would no longer have to handle money, count takings, deposit funds at the bank or write out cash receipts. Most banks will charge business customers note and coin handling fees.
- Fast transaction speed
EFTPOS payments are quick to process and provide an instant proof of payment for you and your customer, which can help avoid disputes. EFTPOS records can also help save time when you need to report sales for cash flow management, BAS statements and other tax and accounting requirements.
- Advanced payment options
EFTPOS and its providers are constantly adapting to the cashless economy with devices that:
Let you take payments anywhere. Our Albert device, for example, can be taken to the customer’s dining table and passed around to split the bill, while Leo can turn your Apple or Android smartphone or tablet into a mobile payment machine that takes payments anywhere.
Having a contactless facility will mean customers can pay using their phone or watch.
What else do you need to consider?
- Internet connection
EFTPOS transactions require an internet connection and may need access to a mobile phone network. Cash may be more reliable if these services are unreliable or unavailable. Make sure your provider gives EFTPOS technical support 24/7.