Credit Where It’s Due: Credit and Debit Card Processing Fees Explained for Merchants.

Discover some simple ways to reduce your credit card processing fees. Merchant services fees are unavoidable. These days, more and more customers prefer to pay with a card or digital wallet. It’s simply more convenient than coins and notes. However, there are a few ways you can reduce the fees you pay to accept cashless transactions, and keep more money in your business. Keep reading to discover more about these costs, as well as seven ways to save money on merchant fees so you can focus on improving your margins, reinvesting in your business, and scaling your operations. What are merchant services? Merchant services are financial services and products for businesses. The term typically refers to EFTPOS machines and the technology required to process digital transactions. When a customer taps their card or digital wallet to your EFTPOS terminal, a number of things have to happen for the funds to move securely from their account into your business’.  Multiple security checks happen in milliseconds to ensure the customer has the required amount of funds available in their account for spending, and cardholder data must be encrypted. That process incurs a fee, called a processing fee. Your cost of acceptance (the amount of money it costs your business to accept cashless payments) accounts for a very small proportion of business costs. However, some merchant services providers also charge monthly fees, authorisation costs, terminal rental fees, and more. These costs add up, and eat into your profits. How to reduce the cost to your business The only way to avoid merchant fees altogether is to refuse cashless payments, and operate as a cash-only business. This is a drastic measure that will cost you customers in the long run. Your customers no longer carry cash, and sending them to the nearest ATM is likely to result in a lost sale. However, there are some ways to reduce merchant fees without sacrificing revenue or losing customers. 1. Understand your fees If you don’t know what you’re paying, you can’t possibly know if you’re paying too much — or identify opportunities to cut your costs and save money. Worse still, merchants who don’t understand their fees could be paying expensive fees unknowingly. Some common costs you could be paying include: establishment fees. Some providers will charge you just to get set up with an EFTPOS terminal. Each individual terminal may incur an additional fee. installation fees . Older terminal models may require a merchant services representative to visit your business for manual installation. monthly account keeping fees.  You could be up for administrative charges every month, just to use your account. terminal rental charges. If you do not purchase your terminal outright, you will be paying a rental fee for each EFTPOS terminal. minimum service fees. Your provider may impose a minimum monthly transaction amount which you must meet, or pay a fee. statement fees. You may be charged for the printing and mailing of your monthly merchant services statements. cash out fee. You may be charged a flat fee or percentage of the transaction to process a customer’s cash-out request. The first thing you need to do is carefully read your merchant statement and identify your true costs. You can’t cut costs if you don’t know what they are. Zeller fees are simple and straightforward: pay just 1.4% per tapped, dipped or swiped transaction. There are no hidden fees or charges. Purchase Zeller Terminal outright, and get set up in minutes. Zeller has been designed for busy, growing businesses, with a simple, easy-to-use design so that you can begin selling as soon as possible. Put dollars back on your bottom line and take the hassle out of trying to find out what exactly you’re paying for, and why. 2. Switch to zero cost EFTPOS Another way to cut business costs is to pass the cost of processing an electronic transaction on to the customer via a surcharge. That way, the customer pays for the cost of the transaction — and your business gets a fee-free EFTPOS solution . Surcharging is common practice in Australia, and customers are used to paying an additional couple of cents for the convenience of using their card. With Zeller, you can toggle surcharging on or off as you please. You have the option to surcharge customers the full cost of the transaction, or a percentage — it’s up to you. 3. Avoid long-term contracts Long contracts lock you into a merchant services facility for months or even years. If your merchant services provider doesn’t do a good job at supporting your business, or chooses not to develop their systems in line with the latest technology, you are still legally obligated to continue paying for the service. Plus, costs for ending a contract early can be steep. What seems like a good deal at the time can quickly become an anchor, tying you into a merchant services facility that costs your business dearly in the long run. Flexible contracts, or no contracts at all, are the way to go. Not only does this give you a competitive edge — by making it possible for you to change providers when it suits your business — but it ensures your provider has to work hard to keep you as a merchant customer. And you’ll never be up for early cancellation fees. When you sign up for Zeller, there are no lock-in contracts or commitments. We know you’ll love our solution enough to never want to leave. 4. Stay PCI compliant PCI stands for Payment Card Industry. As a merchant, there are security standards you must abide by to protect both your customers and your business. In a nutshell, these standards require you to store your customer’s data securely. There are a number of things you must do, such as: encrypt the transmission of cardholder data across open, public networks. track and monitor access to cardholder data. maintain a firewall configuration to protect cardholder data. The fees and fines for not complying with PCI standards are costly — not to mention the cost to your business, and customers, that flow from a security breach. When you accept payments via Zeller Terminal, Zeller takes care of your PCI compliance. It’s just another way our team of security experts helps keep your business safe. 5. Set a minimum card spend Some merchants choose to impose a minimum card spend, forcing customers that make a purchase under a set amount to pay with cash. Customers who aren’t carrying physical money (i.e. the vast majority) have two options: add additional, unwanted items to their purchase so that the minimum card spend is met. abandon the purchase. This is an obviously frustrating experience for customers, and one that could cost your business a customer for life. For this reason, while it is one way to minimise your transaction costs, it is not recommended. 6. Minimise chargebacks Sometimes, a customer may dispute a payment and seek to have the funds returned to their account. This is called a chargeback . When this occurs, the customer’s bank will contact your business for proof that the product or service in question was provided. If adequate proof cannot be provided, the bank will reverse the charge. On top of that, your business may have to pay a chargeback processing fee. Chargebacks are expensive. Thankfully, there are ways you can minimise the likelihood of them occurring, such as documenting evidence of each transaction you process. This documentation can include clear, itemised receipts, signed proof of delivery, a photo of your products in their postal packaging, and more. You can also minimise the risk of chargebacks by partnering with a secure payment processor with in-built fraud and chargeback prevention measures, like Zeller. 7. Find the best merchant services provider for your business Choosing a merchant services facility is one of the most important business decisions you can make. The provider you choose will impact how quickly you receive your funds, your profit margin, the transparency of your incomings and outgoings, and more. Consequently, the impact of choosing incorrectly will be felt across multiple points of your business. EFTPOS terminals used to be basic machines that merely facilitated the movement of money from a customers’ account to your own. Since then, technology has advanced. Your chosen payments partner should enable your business to grow by: enabling you to accept every payment from every customer processing cashless transactions in seconds giving you fast access to your funds allowing you to track transactions in real-time empowering you with transaction data you can use to make important business decisions If your merchant services provider isn’t doing those things for your business, it’s time to shop around for a better option. Zeller is built to give merchants better insight into the financial side of their business. It’s more than just a payments system. With Zeller as your payments partner, you get access to Zeller Transaction Account, Zeller Mastercard and Zeller Dashboard, so you can process sales, spend your takings and track your incomings and outgoings with ease. To learn more about how Zeller can help your business grow, contact Zeller Sales today.

In Australia there’s often confusion between debit cards vs. eftpos cards. While the word EFTPOS can be used in multiple ways; in this instance we’re referring to the Australian debit card network, eftpos. While there are plenty of similarities between an eftpos card and a debit card, there are also a handful of important differences to be aware of when selecting a spending solution for your business. Read on to earn the difference between debit cards vs. eftpos cards. What is EFTPOS? The word EFTPOS stands for ‘Electronic Funds Transfer at Point Of Sale’, which is an in-person payment technology used to accept payments from customers for goods or services. You will frequently use an EFTPOS terminal when you’re shopping with your card or a mobile wallet. However when people talk about eftpos (with a lowercase ‘e’), they’re also referring to the privately run Australian debit card network. If you’re interested in learning more about how EFTPOS transactions work , you can discover the process behind every transaction, and how Zeller delivers seamless payments for your business at the article linked above. What are debit cards? Many business owners are familiar with the concept of debit cards. Debit cards are payment cards linked to your bank or business transaction account . Unlike a credit card, which withdraws funds with a pre-approved spending limit, a debit card withdraws money that is held in your account, reducing your balance instantly. Debit cards vs. eftpos cards Now you’ve got the background on debit cards vs. eftpos cards, let’s look at it in more detail. Australia’s eftpos system functions like a debit card system. Eftpos cards are linked to your business bank or transaction account, and when you spend funds using an eftpos card you are paying for those goods and services with funds held in your account. Therefore when it comes to debit cards vs eftpos cards — they’re more or less performing the same action. Some debit cards may have an approved overdraft limit, enabling the cardholder to spend beyond the balance of their business bank or transaction account limit. But in most instances when you’re spending on an eftpos card or debit card, your limit is defined by the balance held in your account. It’s important to keep in mind that eftpos cards can only be accepted within Australia, by merchants who have an EFTPOS machine set up to accept payments. You cannot use your eftpos card to spend outside of Australia. Differences between debit cards vs. eftpos cards The below table summarises some important differences between eftpos cards and debit cards. While the discussion on debit cards vs. eftpos cards can be confusing, for cardholders and merchants it’s important to understand the differences between each when deciding which card to use for your everyday business spending. Choosing the right debit card solution for your business If your business is searching for a convenient and affordable way to transact in-person and online, a Zeller Debit Card may be the perfect solution for you. Zeller Debit Cards are issued free, and give you the choice of transacting with virtual or physical cards. With no monthly fees or hidden charges, Zeller is the smartest and most affordable way to manage your business spending.

Issuing payment cards to employees for business-related spending is a great way of simplifying expense management in the workplace. What’s less simple, however, is understanding the different card types available to businesses. From corporate credit cards to business debit cards, prepaid cards, and expense cards, there’s a bit to get your head around. Below we explain the difference between the most common card types and provide a list of pros and cons for each. Business Credit Cards Business credit cards  are designed for businesses to cover work-related expenses with funds borrowed from an issuing bank. They often provide rewards such as cash rebates or a points program and are available to businesses of all sizes, typically without any minimum annual revenue or spending threshold requirements. They do, however, require a credit check and often a personal guarantee, meaning the business owner is liable for all debt. Because of the risk of misuse, business credit cards are usually only held by business owners, or authorised personnel, not employees. Corporate Debit Cards & Business Debit Cards A  corporate debit card , or  business debit card  is linked to a business’s transaction account. When a transaction is made, funds are deducted from the available balance of the company’s bank account. When a business owner  opens a business bank account , they will receive a business debit card. Unlike credit cards, they are not linked to a line of credit, and spending is limited to what is available within the account. Most debit card issuers don’t offer the ability to easily modify spend limits on individual cards, meaning that whoever has access to the debit card, can access all the funds on it. Prepaid Cards & Expense Cards A  corporate prepaid card, otherwise known as a business expense card, or employee expense card is a payment card that has been preloaded with funds, allowing businesses to control employee spending. These cards are typically very easy to get, with no paperwork or application process required. Prepaid cards are managed by the finance team or CFO, topped up as necessary, and assigned to employees to give them access to company funds. Zeller Corporate Cards Similar to prepaid cards,  Zeller Corporate Cards  are designed for businesses as a convenient way to track and regulate spending while providing employees with a secure and flexible payment method. These cards are linked to your  Zeller Transaction Accounts , and are managed by the finance team or CFO who can set maximum spend limits per transaction and per day, week, fortnight, month, or quarter. Additional cards are very easy to issue (virtual cards can be issued instantly from Zeller Dashboard, or Zeller App), and can be assigned to employees as necessary. Zeller Corporate Cards: Do not require a credit check to qualify Can be set up in minutes Allow you to set spend limits and recurring budgets, reducing admin time Provide a layer of security if cards are lost or stolen Are accepted anywhere Mastercard is accepted Do not need to be topped up with funds – cards draw funds directly from the transaction account, but only within the card's pre-defined limits. Learn more about the benefits of Zeller Corporate Cards here What card types are best for managing team spending? Although it’s common practice for businesses to share one business credit or debit card, and to pass it around to employees as they need it, this is not recommended. Not only do you run a greater risk of losing the card, but also, company money could be used irresponsibly. When choosing a card type for managing work-related expenses for your team, it’s important to choose one that has been designed for that purpose. Corporate credit cards are a good option, however, given their strict eligibility requirements, they remain largely inaccessible to many businesses.  The best option for managing team spending is either prepaid or expense cards, or even better: Zeller Corporate Cards .  These options give your employees the flexibility to pay for work-related expenses without the risk. You remain entirely in control of how much your employees have access to. With Zeller Corporate Cards, you will benefit from robust expense management features, which allow employees to easily upload receipts against their transactions, and employers to control spending limits and reconcile expenses from their desktop or Zeller's mobile app. Additional cards are easy to order, and Zeller supports virtual cards, which employees can add to their mobile wallets.