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What is No Cost EFTPOS and does it fit my business?

What is No Cost EFTPOS and does it fit my business?

Whether you’re running a business, or part of a team, ensuring your customers can choose the way they prefer to pay is important. Accepting different kinds of payments, such as cards and digital wallets, often comes with additional costs for your business. More specifically when you’re taking payments via an EFTPOS machine you will be charged a transaction fee every time a card is used, plus you’ll need to pay for machine rental or purchase, as well as stocking up on paper rolls.

Given the challenge, No Cost EFTPOS has been introduced to the market and has quickly caught businesses’ attention as a possible solution, offering hope for better management of transaction costs. However, it’s crucial to understand precisely what No Cost EFTPOS is and how it operates. This article delves into the world of No Cost EFTPOS, unpacking its functionality, examining its impact, and illustrating how it can benefit businesses across various sectors. Additionally, it will also explore the key considerations that businesses should keep in mind before opting for No Cost EFTPOS.

What is No Cost EFTPOS?

No Cost EFTPOS2, Tyro’s version of No Fee EFTPOS, is a payment approach that helps recover EFTPOS fees such as EFTPOS transaction fees, EFTPOS machine rental, and paper roll costs via surcharging. This means that a surcharge is automatically applied to a customer’s purchase, therefore allowing businesses to recover all of their costs of taking electronic payments2.

Comparing No Cost EFTPOS with traditional EFTPOS

No Cost EFTPOS: Businesses transfer all the costs of accepting payments via their EFTPOS machine by applying automated surcharges2.This will allow businesses to recover the costs incurred in accepting electronic payments via an EFTPOS machine2.

Traditional EFTPOS: When businesses accept card payments via their EFTPOS machine, they incur a transaction fee based on a percentage and receive a monthly bill for payment. This bill may also encompass additional costs like EFTPOS machine rentals or paper roll expenses.

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Benefits of No Cost EFTPOS

Keep what you earn

With No Cost EFTPOS, businesses can recover the costs associated with electronic payments processed through an EFTPOS machine2. This can significantly reduce their operational costs, directly contributing to enhanced overall profitability. Consequently, businesses can retain a larger portion of their earnings, thereby boosting their profit margins and fostering a more robust financial position. By leveraging No Cost EFTPOS, businesses can channel their resources toward growth initiatives, innovation, and improved customer experiences, ultimately fortifying their market position and ensuring long-term sustainability.

Less admin time on consolidation of EFTPOS fees 

No Cost EFTPOS solutions not only result in significant cost savings but also contribute to reducing administrative burdens and optimising operational efficiency. By recover the costs of accepting electronic payments via your Tyro EFTPOS machine, businesses can forgo the task of consolidating various EFTPOS-related fees, allowing for a more seamless and simplified bookkeeping process. With reduced administrative complexities, businesses can operate with increased agility and focus, fostering an environment conducive to innovation, growth, and improved customer service.

Is No Cost EFTPOS right for my business? 

Before choosing No Cost EFTPOS solution, businesses should carefully consider several factors to ensure the solution aligns with their specific needs and goals.

Customer perception

By thoroughly understanding your customers’ preferences and market trends, you can make informed decisions about adopting a No Cost EFTPOS solution. This approach ensures that your pricing strategy aligns with customer expectations, leading to a positive customer experience and long-term satisfaction while helping to reduce EFTPOS costs for your business.

Before you switch to a No Cost EFTPOS solution, you might want to conduct a thorough analysis of customer preferences and market trends. It’s crucial to understand how your customers perceive potential surcharges and whether surcharging is a common practice in your industry. This assessment should include evaluating how sensitive customers are to price changes, how they perceive your products or services, and the level of competitiveness in your market.

Understanding legal constraints

According to the Reserve Bank of Australia (RBA) guidelines for surcharging, businesses can only pass on the average cost of accepting each type of card transaction, with excessive surcharging subject to investigation by the Australian Competition and Consumer Commission (ACCC)1.

The term “cost of acceptance” refers to the expense incurred for accepting a specific type of card1. Components considered in surcharging calculations, as outlined by the RBA, include fees to third-party providers for payment terminals, charges for processing online payments, costs of fraud prevention services, and fees related to chargebacks from fraudulent transactions, among others1.

Want to know if surcharging is right for your business? Read our blog.

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How to select a No Cost EFTPOS provider

Choosing the right No Cost EFTPOS provider revolves around several important factors. Here are some key aspects to consider:

Eligibility: Some providers may require a minimum transaction threshold for businesses to access No Cost EFTPOS services, making it important to understand any requirements or limitations associated with the service.

True cost: Although No Cost EFTPOS services are commonly promoted, businesses must carefully review the service terms and the full scope of what is included. Some providers may only cover card transaction fees, leaving businesses responsible for the purchase of necessary hardware or supplies like paper rolls.

Hidden fees and exit fees: While providers may market their services as “No Cost,” it is vital for businesses to understand the fee structure. Check the terms and conditions for any hidden costs related to certain transactions or extra services. Also, be aware of any fees if you decide to stop using the service. This helps you know the real costs of the “No Cost” EFTPOS services.

Check compatibility: Ensure that the EFTPOS system operates seamlessly with your current software, such as the Point of Sale (POS) system, to avoid any potential compatibility issues. Seamless POS integration contributes to smooth operations and facilitates efficient transactions.

Tyro’s No Cost EFTPOS

Tyro’s No Cost EFTPOS solution aims to help businesses keep what they earn through a straightforward and simple pricing option2. With No Cost EFTPOS, businesses can automatically recoup the costs of their Tyro EFTPOS facility by passing on EFTPOS-related fees, including card transaction fees, EFTPOS machine rental, and paper roll costs2.

We understand the challenges of running a business, so No Cost EFTPOS enables businesses to avoid bill shock with monthly bills of $02. It also offers a set-and-forget pricing structure with one headline rate for eligible scheme surcharges to customers. This way, businesses can focus on growing without worrying about unnecessary administrative and consolidation work.

Tyro’s No Cost EFTPOS overview

A final word on No Cost EFTPOS

The introduction of No Cost EFTPOS has transformed how businesses manage their card transaction costs, offering an innovative solution to reduce EFTPOS expenses. We have highlighted the significance of selecting the appropriate provider and evaluating various factors before deciding on such services. If you’re ready to explore the benefits of our No Cost EFTPOS solution, call us on 1300 08 TYRO and start a conversation today. Our team is committed to ensuring that your business can thrive and grow without the burden of unnecessary costs.

Talk to one of our specialists to arrange a demonstration, converse about your requirements, and explore how we can assist you.

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