How to minimize costs for your business, breaking down EFTPOS merchant fees for Australian businesses.
Merchant fees are an unavoidable reality for businesses accepting card payments. These fees, which can include interchange fees, assessment fees, and processing fees, can significantly impact your bottom line. While minimizing these costs is crucial, surcharging presents a viable and transparent solution for businesses to offset the burden of these fees.
Understanding Surcharging to reduce merchant fees
Surcharging allows businesses to pass a portion of the transaction fee directly to the customer. This is achieved by adding a small surcharge to the final transaction amount, clearly communicated to the customer upfront.
Benefits of Surcharging:
- Reduced Costs: Directly offsets the cost of processing card payments, improving your profit margins.
- Increased Transparency: Clearly communicates to customers that they are contributing towards the cost of processing their payment.
- Fair and Equitable: Ensures that all customers who choose to pay by card contribute towards the associated costs.
- Legality: Surcharging is legal in many jurisdictions, provided it is done transparently and in accordance with relevant regulations.
Implementing Surcharging Effectively:
- Clearly Communicate Surcharging Policy: Inform customers about your surcharging policy upfront through signage, point-of-sale displays, and on your website.
- Offer Clear Pricing: Display the surcharge amount clearly on receipts and invoices.
- Ensure Compliance: Ensure your surcharging practices comply with all relevant laws and regulations in your jurisdiction.
Advanced Payment Solutions (APS)
At APS, we support businesses in implementing effective surcharging strategies. We provide clear guidance on surcharging regulations and assist you in implementing transparent and compliant surcharging policies.
Contact us today to learn more about how surcharging can help you reduce costs and improve your bottom line.