The big banks charge merchants at the credit card % rate for processing scheme debit card transactions. When you consider that more than 30% of all Visa and Mastercards issued by banks are scheme debit cards, merchants are potentially being overcharged in a significant number of transactions. Tyro on the other hand, correctly identifies each and every single transaction and charges the appropriate fee for the transaction type, generating significant cost savings for a merchant. Take a merchant on a 1% service fee. With a big bank they would pay $5 to process a $500 sale. With tyro, the same transaction would cost only 50 cents. How much you could you be saving? See our plans and comparisons pages.
There are over 40 different types of interchange fees charged by the card issuing banks. Some are very cheap, while others very expensive, but the merchant will never know which is which, because the big banks conveniently bundle them together into just two categories â EFTPOS and credit transactions. Tyro splits transactions up into 7 types rather than just two and reveals the rates and charges for each transaction type to the merchant, making it much easier for them to manage their costs by avoiding or limiting the higher cost transactions.
As both an issuer of cards and acquirer of transactions, the big banks have a conflict of interest when it comes to the merchant. As card issuers, the big banks receive significant income from the interchange fee. The more lavish the reward program the better for everyoneâexcept the merchant who has to pay the price and accept increasing fees. Itâs no wonder that the big banks' interchange and scheme fees are the overwhelming part of the merchant service fee. Tyro has no such conflict. As we are only an acquirer of transactions, not an issuer of cards, we can keep the merchants best interests at heart.