How to Read a Merchant Statement

How to find the right price to maximise your profits and keep customers happy. The importance of appropriately pricing your products cannot be understated. Too high and you could lose out to more affordable competitors, too low and you could struggle to break even. Finding the right pricing strategy is key to boosting your business’s growth trajectory. Whether you’re starting a brand new business or reevaluating your pricing, this article outlines the five essential steps you should be taking to correctly price, or reprice your product or service. From calculating your costs, to understanding your customers, doing market research, monitoring sales and implementing price changes: this article guides you through the art and science of pricing. 1. Calculate your costs The very first thing you need to do when deciding on a price is to calculate how much it costs you to make or deliver your product or service. You need to identify all the direct costs – that is, raw materials or components, labour costs, packaging, shipping and any manufacturing costs. You then need to consider your indirect costs, these include rent and utilities, staff salaries, marketing or advertising, general supplies and insurance and taxes such as GST. Once you have a good idea of what each product or service costs your business, you can use one of the most simple pricing strategies: cost-plus pricing. This strategy involves simply adding a markup to the cost of your product or service. For many retailers that are on-selling pre-made products, this is a common pricing method that works well. However, it does rely on your cost calculations being accurate. So, to ensure you’re not undercutting yourself, it’s important to also factor in market demand and competition. 2. Research your competitors If you’re entering or operating in a crowded market, it’s critical that you understand what the going rate is for your product or service. Do your own market research by looking online, signing up for newsletters, monitoring social media or by discreetly going into your competitors’ stores or speaking to their customer service. If you discover that your proposed pricing is far higher or lower than competing businesses, identify why. Is your product or service lacking something that your competitors are supplying? Are you offering a customer experience or convenience that your competitors are not? If your proposed pricing is in the ballpark of the existing market, then you have a few strategic options. You might choose to adopt penetration pricing, by setting a relatively low price in order to quickly attract customers to try the product, with the view of increasing prices once your business has gained some traction. Or, if your product is new or highly innovative, you may want to initially set your prices higher than your competitors in a strategy that is known as skimming pricing . This capitalises on the willingness of early adopters to pay a premium. Then you can gradually lower your prices to target broader market segments. Or, you could simply opt for competitive pricing, whereby you set your prices close to or just under what your competitors are charging. Whatever you do, it’s important to remember that your competitors’ costs and customers aren’t identical to your own. So, the aforementioned strategies will always work best for your business if you implement them in alignment with your production costs and your customers’ spending capacity. 3. Cater to your customers Getting to know your customers is one of the most important business lessons you’ll ever learn. What they value and what you offer them can make or break your business; so it pays to listen. Talk to your clients and find out what they’re looking for, then bring them more of it. If you don’t have face-to-face interaction with your customers, having a customer contact management solution will help offer insights into their purchasing behaviour. If you’re operating within a demographic that values quality, they’ll likely be prepared to pay a premium for well-made goods or white-glove service. If this is the case, your business could benefit from implementing a value-based pricing strategy , which focuses on the perceived value of the product or service. Consider the benefits, quality, and uniqueness of your offering, and price your product or service accordingly. Or, if you are aiming to create an image of prestige, you could opt for a premium pricing strategy , whereby you purposefully set a high price to position your product or service as luxurious, exclusive, and superior quality. If your customers are searching for a bargain, either you’ll need to find ways to reduce your production costs to ensure your prices stay low, or you could adopt the loss leader pricing strategy. This involves deliberately selling certain products at a loss, in the hope that customers will purchase other, more profitable items as well, making up for the initial loss. For businesses catering to a mix of customers at both ends of this spectrum, having a tiered pricing strategy will help you accommodate the diverse needs of your clientele. By offering a range of prices, you cast a wider net for reaching potential customers. 4. Track your sales Once you’ve decided on a pricing strategy, it’s time to evaluate whether it’s working or not. Having a simple, integrated process that easily shows you what’s coming in, and what’s going out is key in this process. Whether you’re accepting payments via an EFTPOS terminal or through invoicing , Zeller’s all-in-one solution is a great way to evaluate your cash flow. Business expenses can be paid for using the Zeller Debit Card or through a direct debit from the Zeller Transaction Account , and sales can be tracked via an online dashboard and mobile app , giving you an insightful visualisation of your business cash position. Seeing the net balance of your funds over time will quickly tell you if your pricing strategy is working or not, and moreover, it will enable you to identify spending patterns, which can inform whether or not you implement a dynamic pricing strategy . Adjusting your pricing to align with sales peaks or troughs – whether over days, weeks, or seasons – can help bring in customers when business is slow, or capitalise on demand at busier times. Similarly, if your business operates in different locations, being able to compare your sales in different venues can help you implement a geographical pricing strategy if necessary, where you adjust your prices to local market conditions. 5. Adjust your prices (if you need to) After monitoring your sales for a period of time, you might decide you need to change your tack. If this means decreasing your prices, most customers will welcome the change. Just make sure you can reassure them that the quality of your product isn’t also decreasing. If, on the other hand, you need to bump up your prices, there are a number of ways to go about it to ensure you don’t get your customers offside. Soften the blow by offering discounted bundles when several products or services are purchased together as a package. Improving the quality of your product, or adding in extra features, benefits, or improvements can also help to justify the increase in price. Alternatively, consider incremental increases over time to allow customers to adjust to the changes gradually. Or implement psychological pricing by rounding them down from the nearest whole, $9.99 for example. Timing is also an important factor. Generally, the beginning of the financial year (after the sales) is a good time to adjust your prices. Otherwise, identify when your busiest season is, and implement the changes then. If you’re worried about backlash, notify your clients of the price increase either in-store or via email, and clearly explain the reasons. Educating your customers and being transparent with them will help build their trust and loyalty. Finding the right price starts with the right tools. Understanding your costs, customers, positioning, competitors, and ideal profit will help you pinpoint the pricing strategy that’s right for your products. However, it’s important to note that it’s unlikely you’ll ever choose one strategy and stick with it. Your approach will adapt and change over time and in line with the market, which is why it’s important to remain agile. Equipping yourself with the right tools to help you regularly evaluate your pricing will ensure you’re always ahead of the curve. Zeller’s end-to-end solution is your number one ally when it comes to tracking your business cash flow and using sales data to strategically grow your business.

Understanding how much accepting card payments really costs your business. Let's be real: the vast majority of your customers are paying on card these days. Yet when it comes to EFTPOS transaction fees and associated costs charged by banks, there’s been little evolution. The Reserve Bank of Australia’s Consumer Payments Survey  suggests that as of 2022, cash payments represented just 16 percent of in-person transactions, continuing the downward trend that has been underway for nearly two decades. Despite the transformation of the payments landscape on the side of the customer, banks have made minimal effort to assist business owners in adapting to this evolving environment. The lack of flexibility on the part of the big four has made fertile ground for tech-forward payment solutions such as Zeller that are heralding a revolution in business banking — without the banks. Read on for a transparent breakdown of what fees are involved with traditional EFTPOS plans, and how Zeller Terminal could be a smarter alternative for when your business needs to accept card payments. What is an EFTPOS transaction fee? An EFTPOS transaction fee refers to the amount a business is required to pay whenever it processes a card payment with an EFTPOS terminal. With most traditional providers, the fee you pay will vary depending on what type of card a customer uses and will usually be charged as a percentage of the transaction value. Transaction fees, however, are just half of the picture. There can be plenty of other costs associated with EFTPOS, and it pays to understand these before you get started. Kirsten and Malcolm are just some of the thousands of business owners who have cottoned on to the fact that, by virtue of the increased volume of card users, the banks’ EFTPOS transaction fees and costs have become extortionate, despite there being no material improvement in the service provided. Whether you’re planning for your new business or are shopping for a better deal, it’s important to understand the terminology, and how the fees are calculated so you don’t get caught out later. The four factors to consider when calculating your EFTPOS costs 1. Establishment and Setup Establishment fee When you get started with EFTPOS, banks typically charge a one-off establishment fee that covers the setting up of your payment terminal. It is usually charged per facility, so if you have more than one EFTPOS machine , you will be charged for each. At Zeller, the only upfront cost you'll incur is the price of the Terminal, aside from that, it’s free to get started. What’s more, when you sign up, you’ll immediately receive a free Zeller Transaction Account which you can choose to settle your funds into and use to keep track of your business cash flow. You can also order a free Zeller Debit Card to manage your business expenses. Monthly service/plan fee Depending on the bank and the pricing plan you establish, you will also likely have to pay a monthly service/plan fee. This fee is charged to cover the costs of providing your payment service. At Zeller there is no monthly service fee. POS integration fee If you would like to integrate your EFTPOS terminal to your point-of-sale, the banks will typically charge you a one-time fee. At Zeller, integrating your POS and your terminal is easy and you can do it yourself – for free. Of course, if you have any issues, our support team is always here to help, at no cost. 2. EFTPOS Transaction Fees Minimum merchant service fee If your total sales fall below a certain amount, banks will typically charge you a monthly fee per EFTPOS machine. At Zeller, we pride ourselves on our transparent pricing. There are no minimum sales requirements, so even if you don’t start using your Zeller Terminal straight away, you won’t be charged until you make your first sale. Interchange & scheme fees When a customer uses a credit or debit card to make a purchase, a number of fees are charged between your bank, your customer's bank and the payment card network (eg. Visa, Mastercard, or American Express). Without getting into the weeds, (you can learn how EFTPOS transactions work here ), the important thing to understand is that the transaction fee you pay your bank, is entirely dependent on the type of card your customer uses, and it could be anywhere between 0.2% and 3.5%. While Zeller also incurs the same variable interchange and scheme fees as the banks do, we simply charge you one fixed amount, no matter what card a customer uses. Every payment that is tapped, dipped or swiped on a Zeller Terminal (including payments using an American Express card) costs just 1.4%. If the payment is made over the phone, the transaction costs 1.7%. Not only does this make reading your merchant statement much less of a headache, but more importantly, it allows you to more precisely forecast your EFTPOS transaction fees. This means more accurate budgeting, and ultimately, healthier cash flow for your business. What’s more, having a simple flat fee makes it much easier to calculate a surcharge for zero-cost EFTPOS (more on this below). Return or refund fees When you need to refund your customer, the banks may charge a flat fee per refund transaction processed where a credit or debit card has been used. The fee is typically based on the volume of refunds processed. Zeller does not charge a return or refund fee. Chargeback fees A chargeback is a transaction reversal initiated by a cardholder through their bank or credit card issuer. It allows the cardholder to dispute a transaction and request a refund of the funds. If this happens, the bank will charge you a processing fee for investigating and resolving the dispute. With Zeller, you will not be charged if a customer successfully disputes a chargeback. 3. EFTPOS Hardware Monthly terminal fee When you sign up to EFTPOS with a bank, they provide you with the machines under a rental agreement, you do not own them outright. You will therefore be charged a monthly fee to cover the rent of your EFTPOS terminal(s). The fee varies depending on the type and quantity of terminals you use. Zeller EFTPOS Terminal costs $259 and is available to buy outright. Aside from the accessories and stationary mentioned below, there are no additional costs associated with the hardware. Equipment not returned/damaged fee Given that bank-issued EFTPOS terminals remain the property of the bank, if these are not returned or become damaged due to negligence or misuse, you will be charged a fee. Paper rolls and accessories For any additional accessories you request, such as terminal stands, EFTPOS cables or paper rolls; a cost is incurred. Note that many bank-provided EFTPOS machines do not have digital receipt capability, so it’s important to take the cost of paper rolls into consideration. The beauty of Zeller Terminal, is that you can choose to SMS or email customers their receipts — removing the need for printer paper, and further reducing your costs. 4. Surcharging In Australia, it is legal to pass the cost of your EFTPOS transaction fees onto your customer. This process of surcharging is referred to as 'zero-cost EFTPOS'. While it's gaining widespread popularity among business owners, it's important you understand how it works, because charging more than what you pay in transaction fees can get your business into trouble. With a bank-provided EFTPOS machine, surcharging requires the merchant to calculate their own surcharge rate. Legally, the rate needs to be set at the average acceptance cost of the lowest card system . For instance, your surcharge fee might need to be set at 1% — even if the bank charges you 2.6% to accept American Express cards. It’s important to take this seriously as the Australian Competition and Consumer Commission (ACCC) may take action against any merchant whose card surcharge exceeds its ‘cost of acceptance’ (that is, the amount it costs you to accept a payment from a particular type of card). Having a complicated fee schedule makes it very difficult to work out the correct rate to surcharge at, especially if you are running a new business with no history of EFTPOS transactions to base your decision off. Thanks to Zeller’s flat rate applied to all cards, surcharging is simple. Business owners have the flexibility to toggle surcharging on or off — as and when it suits their business — and to choose to pass on the entire EFTPOS transaction fee, or just a fraction. With surcharging enabled, your Zeller Terminal will automatically apply a surcharge to every transaction total, no calculation required. Read our blog to find out whether surcharging is right for your business . The way people are paying has evolved, so it’s time your EFTPOS process did too. When figuring out what EFTPOS terminal is right for your business, it’s important not to simplify the decision down to transaction fees alone. The bank charges associated with setting up the service, connecting your POS, renting the terminal and paying for additional fees for refunds or receipt rolls can end up costing you much more than you think in the long run. Additionally, complex transaction fees that vary depending on each customer’s card makes surcharging a complicated, and stressful, experience. The way people are paying has evolved, so it’s time your EFTPOS process did too. Join the thousands of Australian businesses simplifying their transactions and saving money with Zeller.

Looking for ways to save money in your business? Here are five. The primary purpose of any EFTPOS machine is to enable customers to pay for products or services safely and securely. However, operating a business is expensive — and accepting cards and other cashless forms of currency comes at a cost. Zeller was established to help Australian businesses grow, so it makes sense that together, Zeller Terminal , Zeller Transaction Account , and Zeller Debit Card can save you money. Here are five of the ways Zeller helps keep more money in your business. 1. One low, flat fee. Transaction charges are an expense a business incurs each time an electronic payment is processed. Depending on your payment services provider, these fees can vary widely — making it difficult to anticipate what charges you'll be up for at the end of the month. Zeller processes every tapped, dipped and swiped transaction (including AMEX) for one low rate of 1.4%. Quinton Evens, owner of White Lily Couture , recently made the switch to Zeller. “It started with thinking, how we can use our cash smarter? We looked at other banks and terminal options, but they couldn’t beat our current rate," he says. "When we calculated how much we were paying versus how much we could save with Zeller, it was a no-brainer. Saving $10,000 a year on transaction fees is insane." 2. Automatic surcharging for zero-cost EFTPOS. Surcharging is a part of modern-day life, and an easy way to recoup your cost of acceptance from customers who choose to use cashless forms of payment. The number of customers who carry cash is dwindling, meaning most sales these days come at a small cost — which you can pass on to the customer as a surcharge. For every purchase made with a card or device that is tapped, dipped or swiped to Zeller Terminal, the transaction cost is just 1.4%. As a merchant, you are legally able to pass your cost of acceptance on to your customers – giving you fee-free EFTPOS . Some EFTPOS providers charge merchants an additional fee to switch surcharging functionality on, and make the switch irreversible. This effectively forces merchants to make a definitive decision for their business, one way or the other, and financially commit to it. But how do you know if surcharging is right for your business, and your customers? Zeller Terminal’s surcharging functionality can easily be toggled on from Zeller Dashboard. You can even customise your surcharge amount. With surcharging enabled, your Zeller Terminal will automatically apply a surcharge to every transaction total, after your customer's card is presented, but prior to any card verification and transaction authorisation steps (such as PIN entry or signature). If you decide surcharging is not for you, simply toggle the functionality off. Considering implementing a surcharge at your business? Read our article first to determine if it’s right for your business and your customers, or if there’s another way you can recoup the cost of transactions. 2. Fast settlement. For many merchants, the reality is that funds accepted via their EFTPOS machine aren’t cleared for one or two business days. That means that any payments accepted at the end of the week are often not available to be spent until Tuesday or Wednesday, the following week. The faster you can access your funds, the faster you can put them to work — paying staff, ordering supplies, and investing in your business. That’s why, when you accept funds via Zeller Terminal and have them settled in to your free Zeller Transaction Account, you are able to use your Zeller Debit Card to spend the funds the very next day. 3. Easy tipping. Tipping may not be an ingrained part of Australian culture, but by not offering it you’re removing the opportunity for customers to reward your staff for their efforts. You could be costing your business — especially if you have a large tourist clientele. Some EFTPOS terminals will prompt customers to leave a percentage-based tip, or to key in a specific amount. With Zeller, you have the option to do both, one or the other, or neither. Why not enable Zeller’s tipping functionality, and leave it to the customer to decide whether they want to tip or not? Zeller Terminal enables you to prompt your customers to leave a dip during the transaction flow. This is particularly handy for hospitality-based businesses, however, these days many Australians are also tipping for services rendered. So, how much should you prompt customers to tip? Some sources say 10% is typical. Others say $5 per person, or more if dining at a high-end restaurant. With tipping enabled, Zeller Terminal can prompt your customer to either enter a numerical figure or select a percentage-based tip. You can even customise the percentage-based tip amounts – say, 5%, 10% and 20%. 4. Transaction visibility. In order to appropriately manage your cash flow and identify any opportunities to save costs, you need visibility over your transactions. Any time you have the Zeller Terminal in hand, you can scroll through a chronological list of transactions. Instead of manually counting a cash draw or reconciling your paper receipts, simply tap Transactions from the Navigation menu and a list of transactions will appear. Knowing the state of your takings at any point in time is important. If you operate a food truck, for example, you might have a specific target to meet. With an hour to go until closing time, wouldn’t it be handy to know you only have $150 in transactions to go until you hit your goal for the day? Armed with that knowledge, you might decide to combine some of your items into a special — meaning less food wastage, and a strong end to the day. 5. Fee-free business debit card. Spend the funds settled into your Zeller Transaction Account using the Zeller Debit Card, and you won’t pay any fees for domestic purchases. There’s no annual card fee, either. You can use it both in person and online. We offer this to provide you more affordable business spending. Funds accepted through a Zeller Terminal will be swept into a Zeller Transaction Account overnight, and available for you to spend using your Zeller Debit Card the next business day. You are, however, able to settle funds to an external third-party bank account instead. By sharing your details with us, we may contact you from time to time. We promise we won’t bug you — and you can unsubscribe from communications at any time.