Accepting Credit Cards is Critical for Business

Use of alternative payment methods is skyrocketing. In the digital world, change is rapid. Payment options and alternatives are frequently evolving — as are your customers’ expectations. People expect to be able to transact with the businesses they buy from, quickly and conveniently, no matter which payment method they choose. Some may even go as far as to only transact with those businesses that accept a particular method of payment. As consumer preferences continue to evolve, it’s going to become increasingly difficult and time-consuming for businesses to play catch-up. Those that keep themselves informed of these shifts in expectations stand the best chance of winning and retaining customers in the competitive small business world. Welcome to Payments 4. X A new age is dawning within the payments industry. This era, dubbed “Payments 4. X”, will see a focus on personalised customer experience, industry consolidation and new tech industry players — offering business owners and their paying customers alike “ smarter experiences and smarter interactions ”. But what sparked the change? Payments 4. X has been ushered in by an unprecedented push for contactless payment options, faster transaction settlements, and foolproof security. The most straightforward explanation of the shift comes from Capgemini's 2021 Global Payments Report , which provides an in-depth look at how payments have changed over the last year, as well as the various ways in which the COVID-19 pandemic has shaken the industry up and created new opportunities for merchants to improve the way they run their business. Access the entire global report online , or keep reading for the short version: a distillation of 5 payment trends that will likely impact small business owners in Australia as we enter the age of Payments 4. X. 1. Connected systems The success of any business hinges on its people, processes, and systems. As new tools and apps continue to be developed, the success of a business will increasingly depend on its tech stack. The ecosystem of tools you piece together will impact everything from how you communicate with your customers, to the ease of running promotions, to the time it takes to report on business performance. Integrating your EFTPOS terminal with your point-of-sale system, for example, will enable you to select a customer’s item on-screen and have the transaction amount immediately appear on your terminal — ready for the customer to tap, dip, or swipe to pay. An interconnected system will also make real-time data accessible, enabling you to make quick decisions for the betterment of your business. For your customers, connected systems mean a better experience; more personalised, more efficient, more fulfilling. As tech companies continue to develop products built on the software-as-a-service model, businesses of all shapes and sizes will be able to create their own modular value chain of tools. This plug-and-play tech will enable those merchants who spend time comparing and selecting tools that work well together to save time, build better customer relationships, and grow profits. Perhaps most importantly, spending the time to find the right systems will enable you to run your business in your own unique way. 2. A new type of consumer credit Buy Now, Pay Later schemes (BNPL, for short) are exactly what they sound like. A customer can buy a product now, for a small amount of money, and pay the balance later — no need to wait for payday. In removing these hurdles for customers, they’re more likely to spend. An American study found that businesses that offered their customers to option to buy now, pay later experienced a 20 to 30% uplift in conversion rates. 80% of those that began offering BNPL saw an increase in the amount customers spend in-store. Unsurprisingly, BNPL has exploded in popularity — especially amongst younger generations, where trends come and go quickly. The way they’re using the platforms demonstrates a clear preference to debit over credit; according to Afterpay, 94% of its Gen Z users are opting to buy now, pay later using their own money rather than link their account to a credit card. This is the same generation that commonly reaches for their phone or extends their wrist when it comes time to pay. Anyone with a bank account that meets a set of standard eligibility criteria can sign up for a BNPL scheme to buy whatever they want at stores that accept the payment method. Essentially, that means anyone over the age of 18, with a bank account, who passes a credit risk check can use BNPL. If your business doesn’t already accept BNPL as a method of payment, consider whether 2022 is the year to start. It could be a way to reach a new subset of customers whose spending power is increasing with time, and grow your profits. 3. No more cash The pandemic has hastened the pace of cash’s decline even faster than predicted. In 2020, cash was used for just 20.5% of transactions at a point of sale across the globe. That’s a 32.1% reduction in cash use since 2019. Companies like FIS, for example, previously speculated we would reach these levels in 2023; the pace of decline is three years ahead of schedule. In Australia, we are even further ahead of the pack; cash has been approaching legacy status as a payment method for years. Cash is used for less than 20% of point-of-sale transactions in the Asia-Pacific region, and it’s expected that by 2024 it will account for less than 10% of those transactions. So, how are consumers paying? With their new limb: the mobile phone. Nearly 45% of consumers say they frequently used their mobile wallet to pay for things in 2021 — meaning almost half of consumers reached for the mobile wallet upwards of 20 times. A year prior, just 23% of consumers did the same. This is good news for businesses; the less frequently your customers pay with cash, the less time you’ll spend counting your cash drawer, visiting the bank, and waiting to be able to put those funds to work. Instead, simply accept payment through Zeller Terminal and the funds will be available in your Zeller Transaction Account the very next day. Spend them using your Zeller Mastercard . 4. Innovative forms of payment There’s no question that COVID has accelerated the adoption of digital wallets while speeding up the decline of cash. However, consumer payment preferences are growing increasingly diverse. With Payments 4. X ushering in an accelerated transformation timeline, every business owner needs to take stock. How will your customers expect to be able to pay in 12 months’ time? Credit card use is expected to flatline. There’s an abundance of payment methods available, and more to come. What was once considered an ‘alternative payment method’ — such as a digital wallet attached to a mobile phone or smart ring — is now mainstream. Cash won’t simply be replaced by credit cards and mobile wallets. Remember, the technology powering NFC-reliant digital wallets is still in its infancy. As younger generations embrace these newer payment methods with gusto, the trend accelerates — indicating there’s more change to come. Is your business prepared? Convenience is key; when a new payment trend emerges, you’ll want to ensure your EFTPOS terminal can meet your customers’ needs by accepting whatever form of payment is most convenient. 5. An even faster pace The pace of innovation and competition within the industry has sparked a change in consumer expectations: everything must happen quickly. Near instantaneously. Consumers have gotten used to fast transactions, and are increasingly expecting the process to become faster and faster. In this instance, a ‘consumer’ in a digital transaction refers to both: the customer of the bank (i.e. the business carrying out the transaction and accepting funds) the customer of the business (i.e. the person who is making a purchase). Both expect the transaction to happen swiftly, meaning instant payments and quick transaction settlements are already table stakes. Businesses need the ability to quickly and seamlessly process transactions, so customers can pay and continue with their day without disruption. This includes the ability to quickly identify the reason for a declined transaction , and being enabled with the information to quickly correct the issue and progress the sale. However, increased transactions volumes and instant processing requirements are stretching the banks’ decades-old legacy payments infrastructure. Nimble payments providers will be able to adapt to change and offer their users the most forward-thinking solutions, so that you can offer your own customers a great payment experience. Preparing your business for Payments 4. x The picture the Global Payments Report paints is overwhelmingly positive, despite the obvious challenges. Innovation is opening significant opportunities for payment providers to step up and differentiate themselves as forward-thinking companies that can keep up with the pace of change, and build the functionality that enables businesses to take advantage of those changes. As a merchant, it’s up to you to ensure that every one of your customers has a positive payment experience. Whether you are able to accept a customer’s method of payment, troubleshoot a declined transaction, or even continue operating in a thunderstorm depends on your EFTPOS provider. It's an important choice that will have an impact on the way you run your business for years to come. 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.

Considering a card machine? Here's what to weigh up. Having a reliable card machine and accepting card payments is becoming increasingly important to Australian businesses. Contact payment is now the norm, so when you’re starting up a business, one of the first things you’ll need to consider is whether to get EFTPOS (Electronic Funds Transfer at Point Of sale). While there has been a rapid decline in cash payments over the past decade, the rise in payment technology means it’s crucial to be informed about the various EFTPOS options that are available to your business so you can make the right choice. Looking for more information about what EFTPOS is and how it works? We’ve written a handy article explaining exactly that. Let’s take a look at the advantages and disadvantages of using EFTPOS in your business. What are the advantages of EFTPOS? The advantages of EFTPOS include faster transactions, encryption for security, quicker access to your funds, the ability to offer multiple payment methods for your customers' convenience, and proof of payment with a digital or hard-copy receipt. Faster transactions A card machine has the superior ability to speed up transactions, which means you can create a better service experience for your customers while also lowering your labour costs. For the hospitality industry, increased efficiency is the key to handling rush hour. This is the time your business will be making the most money so it’s important to be able to keep customer satisfaction levels high while finalising transactions quickly. Having EFTPOS machines handy helps your employees keep up the pace during those frantic peak times. More secure EFTPOS machines offer businesses a much higher level of security than when you’re dealing with cash and keeping large quantities of it in your till. Thieves primarily target businesses that make a lot of cash quickly. By having card payments where the funds transfer directly into your bank account, you are more likely to avoid being a victim of this type of petty crime. Quicker access to your funds Instead of making a time-consuming trip to the bank to deposit cash, then waiting for it to hit your account, you can accept funds through Zeller Terminal. The money will conveniently settle in your account by the next business day. If you sweep the funds into a Zeller Transaction Account, they can be available even sooner. This helps increase your business's cash flow. Some card machine providers have setups that take longer, so if fast access to takings is important to you, look for a provider that prioritises this. Accept multiple payment methods EFTPOS terminals can accept a wide variety of payment methods, including contactless technology. Options include AMEX, Apple Pay, Google Pay, eftpos, and more. Letting your customer choose what’s convenient for them will ensure you meet their needs. It's a key part of providing exceptional, memorable customer service as a whole. Proof of payment An EFTPOS terminal will provide your customer with a physical receipt, which proves what, when and how they purchased goods or services from your business. Some providers, such as Zeller, will also allow you to email or text a digital receipt to your customers, so they can keep it for their records. Even if your customer doesn’t take the receipt, you’ve got details of the transaction to ensure there’s proof of payment. There’s no need to count your till when a customer says they think they paid with a $50 note, but your staff gave them change for $20, either. Disadvantages of EFTPOS Merchant services fees Each time a customer makes a card payment, you have to pay a transaction fee. When you’re being charged a different rate for accepting AMEX cards, eftpos, and the rest, it can become very difficult to work out how much you’ll need to pay your merchant services provider at the end of the month. This is one reason why the typical merchant statement can be tricky to understand. However, you have the option to pass that off as a surcharge. Look for an EFTPOS terminal provider that charges one flat rate, so you can anticipate your charges. Every card tapped, dipped or swiped on Zeller Terminal costs just 1.4%. You can easily toggle surcharging functionality one or off anytime, from Zeller Dashboard . Risk of downtime EFTPOS terminals rely on a working internet connection to make the transaction happen. Some internet downtime is unavoidable, whether due to service interruption or upgrades — it’s out of your control. When this happens, you won’t be able to accept payment. This is extremely frustrating for a customer and potentially harmful to your business reputation. Decoy Cafe , in Melbourne CBD, was experiencing multiple internet dropouts at peak periods. This rendered their card machines, provided by one of Australia's big four banks, useless — and forced staff to ask customers to return the next day to pay for their purchases. However, since making the switch to Zeller Terminal, Decoy has resolved its downtime issues. Zeller SIM Card (powered by Optus) provides backup internet connectivity, in the event your WiFi cuts out, so you can continue taking payment. Should you get an EFTPOS machine for your business? Without a doubt, you should be operating your business with a quality EFTPOS machine that’s available to your customers however they pay. Every EFTPOS machine is different, from the speed of settlement to the merchant services fees. Make sure you consider all the pros and cons before you make a purchase so you select the card machine that’s right for your business.

An EFTPOS machine is an essential tool for modern businesses. EFTPOS (which stands for Electronic Funds Transfer at Point of Sale) machines accept credit and debit card transactions. A modern EFTPOS machine from a reliable payment services provider will capably handle this task, by sending transaction approvals and transferring funds between different systems. Then, the customers' funds are settled into your nominated business transaction account — ready for you to spend, reinvest in your business, or pay suppliers and employees. This is the bedrock of a functional EFTPOS machine. No matter what other features and services are offered, your business needs an EFTPOS terminal that is ready to process every customer’s electronic payment quickly, securely, and affordably. Understanding the basic EFTPOS functionality An EFTPOS machine facilitates the movement of funds from a customer’s account into your own. When you’re selling in-person, you require an EFTPOS machine in order to accept digital payments. Contactless payments are now the norm in Australia; without an EFTPOS machine, you’re narrowing your potential customer pool to those few Australians who still carry cash. Zeller Terminal accepts payments through various methods, including inserted, swiped, and contactless payments from cards or NFC-enabled devices, as well as MOTO payments . How do you enter a card number on a payment terminal? To enter a card number on a card machine, simply key in the card number, expiration date and Card Verification Value (CVV). These transactions are known as MOTO (short for Mail Order Telephone Order) payments . On Zeller Terminal, accepting a manually-entered card payment is easy — simply toggle the mode switch from Card to MOTO. The ability to manually enter card details provides you with a quick, convenient and secure way to accept payment from customers when they’re not with you in-person. Using advanced EFTPOS features A next-generation EFTPOS machine offers you functionality beyond just accepting payments. The best EFTPOS machines combine fast, reliable payment processing with valuable features that can help you grow your business, such as: enabling you to showcase your brand through receipts and screensavers. providing you with enhanced security on every transaction accepted. integrating with POS systems, or offering a free, built-in point-of-sale. automatically splitting transactions by amount, or by number of guests. prompting customers to add a tip at the end of a transaction. Keep reading to discover how to use an EFTPOS machine to grow your business, by leveraging Zeller Terminal’s advanced features. Showcasing your brand A receipt, whether printed or digital, is the perfect place to promote your business and deliver a memorable customer experience. No longer just for proof of purchase, your receipts can help you promote your business by: boosting brand awareness by giving you a place to showcase your logo. motivating customers to follow you on social media with links. building customer relationships with a custom note or message. minimising the risk of chargebacks by including helpful return information. Additionally, the best EFTPOS machines, like Zeller Terminal, enable you to add a custom screensaver to the display. This screensaver could include your business logo, or a promotional offer to display to customers when they’re making payment. You can also learn how to Use Zeller Receipts as a Marketing Tool here . Providing enhanced security As your business grows, it’s likely that you hire new staff members to accept payments with your EFTPOS terminal. Unfortunately in some circumstances, this can create a security risk to your business, and your customers. Zeller Terminal enables you to take control of who can access secure information and features from your EFTPOS machine — such as transaction information, issuing refunds, or updating terminal settings. By setting a secure PIN code on Zeller Terminal, you can immediately restrict access to specific features on your EFTPOS machine, helping to protect your business and enhance your security. Point-of-sale functionality and integrations A point-of-sale (POS) system enables you to create an item library, track inventory, build a shopping cart, accept payments from customers, and send an itemised receipt, in one seamless, fully integrated flow. POS systems are a modern alternative to the traditional cash register and can be run on computers, tablets, smartphones, and even EFTPOS terminals. Zeller POS Lite comes built-in free to Zeller Terminal 2, enabling you to build a robust item library that displays directly from your EFTPOS terminal or smartphone (via Zeller App). You can use Zeller POS Lite to manage items, add modifiers and attributes to products, and create detailed item reports to track what’s selling, and what’s not. Alternatively, a modern EFTPOS machine should also integrate directly with your existing POS system — whether you use a hospitality-based POS like Redcat , or a retail-focused system like Zii POS . Zeller Terminal integrates seamlessly with over 600 third-party POS systems, which you can find on the Zeller Partner Hub . Split transactions In many circumstances, such as in a restaurant or cafe, your customers may ask to split a payment across a number of people. This requires you to operate a modern EFTPOS terminal that will enable you to automatically split transactions, without your staff having to calculate the individual payment values manually or with a calculator. With Zeller Terminal, you have the option to split transactions directly from the device. Transactions can be divided by the number of guests evenly, or alternatively, every guest can choose a custom value to make payment for, until the entire transaction is complete. Prompting customers for tips If you’ve delivered a great customer service experience, customers may want to leave you a tip at the end of an EFTPOS transaction. EFTPOS tipping is increasingly common in service industries such as cafes and restaurants, so having an EFTPOS machine that automatically prompts customers to leave a tip is essential. EFTPOS terminals that are automatically enabled with a built-in tipping feature may lead to an increase in gratuity, benefitting your employees. In fact, modern EFTPOS machines like Zeller Terminal, which automatically prompt customers for gratuity at the end of a payment, have delivered an increase in tips by up to 30% . Why you need an EFTPOS machine We know, with certainty, that Australians prefer using debit and credit cards over notes and coins. Research from the Reserve Bank of Australia demonstrates the sharp decline of physical cash use: respondents under the age of 40 used cash for less than 15% of their payments in 2019. In 2016, cash accounted for 30% of their payments. Over the last five years, the number of ATMs across Australia has fallen 53.6% — making it difficult for those few consumers who still want to carry cash to do so. The world has gone digital, and as a result so have businesses. All of this is unlikely to come as a surprise, considering the obvious benefits of credit and debit cards: they’re simple, fast, secure, and generally easy to use. A customer just needs to tap, dip or swipe their card or mobile wallet to your terminal — without the need to handle cash. For this reason, having an EFTPOS machine is just as critical for your business operations as it is for your customers’ experience. The cards EFTPOS machines accept EFTPOS terminals accept both credit and debit cards. However, with advancements in technology come new ways to pay — meaning older terminals from traditional providers may not support the payment methods your customers prefer. When selecting the right EFTPOS machine for your business, it’s important to look for a terminal that will enable you to offer customers a broad range of payment processing options. How do your customers expect to be able to pay for the goods or services you provide? If you run a busy coffee shop in the CBD, your customers might want to use their mobile phone or smartwatch to pay for their morning caffeine hit. Your customers may even use lesser-known payment types that are growing in popularity. When choosing which EFTPOS machine is right for your business, set your sights on an EFTPOS terminal that accepts all of the major card networks (such as eftpos, Mastercard, Visa, American Express, and JCB) as well as other convenient payment methods your customers prefer to use (such as Apple Pay and Google Pay). Do EFTPOS machines need internet? An EFTPOS machine will use a wired or wireless internet connection to process payments. Modern terminals use SIM cards, making it possible for you to process transactions outside of Wi-Fi range (a must when customers expect to be able to pay at the table). However, best-in-class terminals will provide multiple connectivity options: a SIM card slot, as well as Wi-Fi connectivity. Business owners must also ensure that their EFTPOS terminal will connect to the available mobile network — with the 3G network shutdown rolling out across Australia, Zeller Terminal will reliably connect to 4G networks, too. Communication between the terminal, the card issuer, the processing bank, and the payment network requires reliable connectivity — but that doesn’t have to come from a traditional internet connection. Technology has evolved so you no longer need to have your terminal hardwired, sitting stationary by your register. Your payment tools should work wherever you do. How long does an EFTPOS transaction take? Every business owner wants to know how long an EFTPOS transaction takes. The time it takes to settle funds to your business bank account directly impacts cash flow and, by extension, your ability to grow your business. Funds accepted via Zeller Terminal are swept to your chosen Zeller Transaction Account nightly, available for spending instantly using your free Zeller Debit Card . For more information about the limitations of traditional banks, read Transaction Processing and Settlement: Why Do Banks Take so Long? Finding the best EFTPOS machine for your business needs EFTPOS machines make payments easy for customers and business owners alike. Customers can quickly pay for their goods or services and get on with their day, while your business can cut down on wait times and efficiently provide great service to everyone making a purchase. Finding a trusted, secure and innovative EFTPOS provider should be a top priority for your business. Zeller enables merchants to accept every payment, accelerate cash flow, and quickly manage and access funds. Learn more about how Zeller Terminal can help your business. Interested in learning more? Find out how EFTPOS Transactions Work here.