Should You Accept Card-Not-Present Payments?

Discover how Zeller MOTO payments work for your business MOTO transactions are a quick, convenient, and secure way to accept payment from customers remotely. Also known as ‘manually entered card payments’, these types of transactions are another way for merchants to grow their business. Unlike traditional card payments — where both the customer and their card are physically present — MOTO payments can occur anywhere. Businesses that accept MOTO payments aren’t reliant upon having a brick-and-mortar location for customers to visit, or even a website or online store. If you've got a Zeller Terminal, you can process a MOTO payment from anywhere in Australia. What is a MOTO payment? MOTO is short for Mail Order, Telephone Order. It refers to the act of processing a payment remotely — over the phone via a verbal request, or in writing via mail. Both of these scenarios are what’s known as card-not-present transactions, or CNP payments. Instead of a customer tapping, dipping, or swiping their card or another payment device to Zeller Terminal, the merchant will enter the card details and process the transaction manually. Typically, when a merchant processes a MOTO transaction, neither the card nor the cardholder is physically present — making it difficult to verify the purchaser’s identity. This lack of visibility increases the risk for fraudulent transactions to occur. For this reason, additional security practices are required to process MOTO payments. How to set up MOTO payments with Zeller Terminal Before you can accept your first MOTO payment on Zeller Terminal, you’ll need to update your software. Follow the simple steps below. First, check to see if your software updated overnight. If it has, you’ll notice a new ‘Mode’ button in the right-hand corner of the payments screen on your EFTPOS terminal . If not, you’ll need to re-boot your Zeller Terminal. Once re-booted, the new software update will be installed and the new ‘Mode’ button will be visible. MOTO settings will now be available in your Zeller Dashboard and in your Zeller Terminal settings, too. For more information, visit the Zeller Support Centre . How to accept MOTO payment with Zeller Terminal To process a MOTO payment: Tap the ‘Mode’ button and then tap MOTO. You’ll notice that the payments screen turns blue to indicate that you’re now processing a MOTO payment. Enter the transaction amount. Tap Manual Charge. Verify the cardholder’s identity. Enter the card number, expiration date, and CVC then tap Next . Check the amount and card details are both correct. Tap Charge. You also have the option to default to MOTO payment. This is especially handy for merchants operating without a brick-and-mortar shopfront, or those processing a higher volume of MOTO payments. Simply update your Sites settings in Zeller Dashboard by toggling Default to MOTO on. To reflect the increased risk of fraud with MOTO payments, you can require that a site PIN be entered before a MOTO payment can be processed by toggling Require site PIN on. Are MOTO payments safe? Zeller monitors your transactions round the clock — 24 hours a day, 7 days a week — to help prevent fraud before it occurs. Our expert team of fraud detectors works alongside real-time, machine-based transaction monitoring in order to identify and reduce fraud risk. However, it’s important to ensure your staff is knowledgeable about securely accepting MOTO payments, as well as best practices for doing so, before you begin accepting MOTO payments from customers. Visit the Support Centre for more information on the risks of accepting MOTO payments, and tips to help keep your business safe when processing manually entered card payments. How much do MOTO transactions cost? To cover the cost of measures put in place to protect against fraudulent transactions, the fee to process a manually entered card transaction is 1.7% — slightly higher than the flat fee of 1.4% applied to in-person card payments. Zeller exists to help Australian businesses grow. When Zeller merchants told us they wanted the ability to accept payment over the phone, our team got to work building the functionality to make it possible. If you have any questions, reach out on Facebook or call our Support team on 1800 935 537. Or, email feedback@myzeller.com to provide any product feedback or feature ideas to our team directly.

Protect from Wi-Fi outages and get flexibility to sell on-the-go for pocket change. We’ve all experienced the frustrations of poor internet connectivity and service disruptions, however that frustration pales in significance compared to the impact an outage can have on your business. When your Wi-Fi or personal hotspot cuts out, your business is left exposed to the risks of lost revenue, reduced productivity, and customer complaints. There are many potential reasons for an internet connection to drop, which can range from equipment failures to power outages to faults on the line – all of which are out of your control. The good news is that Zeller Terminal can be powered through Wi-Fi, personal hotspot or Zeller SIM Card to ensure you can continue serving customers without disruption. Keep reading to discover some of the ways adding a Zeller SIM Card to your Zeller Terminal can benefit your business. Mobility More than just providing reliable connectivity, using Zeller SIM Card enables businesses to be more mobile. SIM connectivity is a great option for any mobile business, such as a food truck, pop-up retailer or mobile service provider, because SIM cards provide connectivity where there may not otherwise be internet. Instead of being reliant on Wi-Fi or a personal hotspot, Zeller Terminal together with Zeller SIM Card allows you to operate your business from anywhere and be mobile from one place to the next without any additional set-up or infrastructure. Reliability If your business advertises that it accepts credit cards and other cashless payment methods, you need to make sure this option is always available to your customers. Zeller SIM Card is powered by Optus, which covers a huge 98.5% of the population of Australia. That means you can rely on Zeller SIM Card to keep your Zeller Terminal connected to the internet, from wherever business takes you. You can use your SIM connectivity as the primary method of internet connectivity, or connect your Zeller Terminal to your Wi-Fi and rest easy knowing Zeller SIM Card is there to back you up in case of interruption. Faster transactions A quick transaction is reliant on a fast internet connection. However, your staff may not always take payment while standing directly next to your Wi-Fi router or hotspot. When connectivity is weak, transactions typically take longer – and customers become disgruntled. No one likes waiting, so don’t make them. Zeller SIM Card will ensure you can continue to take payment from every customer efficiently. Better customer experience These days, customers expect to be able to pay from wherever is most convenient for them – whether that’s by the road (for click and collect purchases), at the table, or another location. Zeller SIM Card allows you to bring the terminal to the customer, and provide an even better customer experience. Fewer late payments If you’re in the practice of issuing invoices, pairing your Zeller Terminal with Zeller SIM Card can considerably speed up the time it takes for funds to hit your bank account. It takes an average of 25.5 days for an invoice to be paid. If you process the transaction through Zeller Terminal, the funds will be in your account by the next business day – or even faster, if you settle the funds to your Zeller Transaction Account. Plus, you’ll save yourself the administrative burden of issuing and chasing up invoices. How does Zeller SIM Card work? Zeller SIM Card is available for a flat fee of $15 per month, and we’ll even give you your first month of data for free. With unlimited data, no lock-in contracts, and the option to cancel at any time, it’s an obvious choice for businesses seeking to mitigate the risks of poor connectivity and provide an exceptional customer experience. Plus, having a separate service plan provides visibility into cost, and does not count towards your phone or tablet’s monthly data quota. Zeller SIM Card can be purchased from the Zeller Shop with free express shipping and same-day dispatch. And, if you purchase Zeller SIM Card during the month of July 2021, you’ll receive free data until 1 October 2021 — that’s three months of unlimited data, for free.

Discover how to pass on your cost of acceptance with Zeller. In Australia, businesses are legally entitled to charge customers a fee for processing an electronic transaction. This fee is called a surcharge. The purpose of this fee is to cover the costs associated with accepting the customer’s chosen payment method — yet some merchants choose to absorb this cost themselves. Zeller Terminal makes it simple to pass on your entire transaction fee, or a percentage of your transaction fee, with the toggle of a switch. When you surcharge the transaction fee in full, your business is getting zero cost EFTPOS . Keep reading to discover more about credit card surcharges, the legalities around passing on your cost of acceptance, and how to set your EFTPOS surcharge on Zeller Terminal. What is a surcharge? Different payment methods have varying costs and benefits to both businesses and their customers. A surcharge is an extra charge you can pass onto your customers who choose to pay with a credit or debit card, or smart device. Every time your business processes a cashless transaction with an EFTPOS terminal , you are charged a small fee to cover the checks and balances that must occur in order to safely move funds from a customer’s bank account into your own. Zeller makes it easy for you to pass that cost — either in its entirety or in part — onto your customers as a surcharge. Having the ability to set a custom surcharge means you can choose what suits your business, and your customers. Why businesses surcharge their customers The prices that merchants set for their goods and services incorporate the general costs of running the business — such as rent and electricity, among other things. Yet an important distinction between other business costs and the costs associated with transactions is that it is the customer that chooses the method of payment, which then determines the cost of the transaction. Cards are the most frequently used method of payment in Australia. As cash use continues to decline, the more electronic transactions your business processes. You will need to make fewer trips to the bank to deposit your takings, spend less time counting cash drawers, and benefit from the increased security that solutions such as Zeller Terminal offers. For more information about the shift away from cash and how this impacts your business, read our blog: Why Accepting Credit Cards is Critical for Business . It typically costs just a few cents to process an electronic transaction. However, many merchants look for ways to grow their business. For some businesses, passing on transaction fees via surcharging is a way to achieve this. The downside of surcharging Surcharging is relatively common in Australia — you’ve undoubtedly paid a surcharge as a consumer, whether at your local coffee shop, hairdresser, or high street store. Businesses of all shapes and sizes choose to pass on their cost of acceptance this way. Yet, for some customers, surcharging can be a turn-off that impacts their likelihood to return to your business and purchase again. It may even impact their perception of your business. Research from Finder shows the majority of Australians don’t believe they should be charged for choosing to pay with a card or smart device. Now that cash payments are becoming less and less common, the practice of charging an additional fee for card payments has even been called “ redundant ”. Should your business surcharge customers? In determining whether or not to utilise the Zeller surcharging functionality to recoup your cost of acceptance from customers, consider: the customer perception of surcharging. how common (or uncommon) surcharging is in your specific industry. whether your nearby competitors impose a surcharge. Surcharging is more commonly accepted in some industries than others. For example, 23% of Zeller merchants who run retail stores surcharge their customers, compared to just 2% of those who operate a beauty salon — which indicates that consumers are likely accustomed to paying a surcharge when tapping their card to pay for a new shirt, but less accustomed to paying a surcharge for a manicure. On the other hand, 12.7% of Zeller merchants who run a bar, restaurant, cafe, or other hospitality business surcharge customers. It’s also important to pay attention to what your competitors are doing — especially if you run a business that is reliant on a steady stream of local customers, such as a coffee shop. If locals know they can purchase their daily cup of coffee from a competitor across the street without paying a surcharge, you may risk losing their business. Ultimately, the decision of whether or not to surcharge is yours alone; no one knows your customers better than you. If you decide not to toggle on surcharging, either in full or in part, you could look for other ways to reduce your business expenses — such as by increasing the price of your products or services. Zeller Terminal makes it as simple as possible for those who wish to surcharge their customers to recoup their cost of acceptance, either in full or in part. Keep reading to discover how much you can surcharge, and how to set up your Zeller Terminal for surcharging. Surcharging rules in Australia The Competition and Consumer Amendment (Payment Surcharges) Act 2016 prohibits businesses from charging customers an “excessive” surcharge. However, there is no set rule regarding what is deemed an excessive charge. Legally, businesses are entitled to recoup the cost of accepting a customer’s method of payment — no more. The Reserve Bank of Australia outlines the costs that can be covered in a surcharge, including: Merchant service fees Terminal rental fees Costs to maintain a credit card terminal Other fees including switching fees, fraud-related chargeback fees, and more. How much can Zeller merchants surcharge? In setting your surcharge, it’s important to remember that Zeller Terminal is yours to own outright. That means businesses that use Zeller do not incur terminal rental fees. Transactions processed through Zeller Terminal, where the customer and their card are both present, typically cost 1.4% of the total transaction amount. Card-not-present transactions (whether over the phone or via post) typically cost 1.7%, to reflect the increased security measures required to verify the transaction. The maximum surcharge you can set is equal to your transaction fee. How to set your surcharge with Zeller Setting your custom surcharge takes just a few moments, and can be done via Zeller Dashboard or Zeller Terminal. Simply follow the steps below, and every transaction processed through Zeller Terminal will have a surcharge applied automatically. Setting your surcharge on Zeller Dashboard Surcharging functionality can be accessed via the Payments settings for each individual Zeller Terminal. Follow the below steps to set your surcharge on Zeller Dashboard for in-person payments. Expand the Payments menu and then click Sites . Select the Site you would like to manage. Click the Payments tab at the top of the screen. From here, you can either: Toggle on Surcharge my total fees , or Surcharge a percentage and enter a custom card surcharge that is no more than 1.4%, or Click Save to confirm your changes. Electing to pass on your total fees means you will recoup your costs for the full transaction amount, including any tips, every time. As MOTO transactions incur a higher fee, you need to toggle on surcharging for card-not-present payments separately. The maximum surcharge you can set for MOTO transactions is 1.7%. Setting your surcharge on Zeller Terminal Setting and updating your surcharge on Zeller Terminal is just as simple — however, you must be logged in as an Account Administrator. This is to protect your business from staff accidentally toggling surcharging on or off. For more information about surcharging with Zeller Terminal, visit the Support Centre . Providing Zeller merchants with the ability to pass on transaction fees in full or in part is just one way Zeller supports merchants to run their business the way that suits them.