EFTPOS – Advantages, Disadvantages and Why You Need One
Wondering if you should get EFTPOS in your business? Well it’s about time.
Contactless payments have gone from trend to norm in Australia.
And you don’t have to take our word for it.
Advantages of EFTPOS
1. Efficiency and lowered labour costs
Cash is finicky.
It needs to be counted (often recounted) and then deposited into your bank. Daily.
That’s a whole additional task for you or your staff to fulfill.
Having EFTPOS reduces the amount of cash your business will be dealing with, thereby reducing the amount of time your staff spend handling it.
2. Lower risk of theft
Back to our earlier point about cash being high maintenance.
Cash is so much easier to steal. Businesses that store huge amounts of cash are more likely targets for crime. So, protect yo-self!
On top of that, when you’re not on-site you won’t ever be sure if someone is skimming a cut from your profits. EFTPOS payments go straight into your bank offering you peace of mind, and bringing your business a layer of transparency.
3. Lightning fast transactions
The main benefit of contactless payments are the speed they bring to each transaction.
Most hospitality businesses make the bulk of their revenue during rush hours.
For cafes it’s the morning coffee craziness, while for quick service it’s the lunch hustle.
Falling behind, and losing customers during your rush hour
See how you can bust queues with Tyro’s sub 1.6 second transactions. Yes, you will feel the difference.
4. Take all varieties of payments
When you run a business you know that your customer is king, always right, and never carries cash.
When you have an EFTPOS facility in your business you reduce any friction in accepting payments as you will be able to transact any way your customer expects to.
The payments market is deeply fragmented.
Between credit cards, mobile and Apple watch payments, business owners are constantly kept on their toes.
How do you meet consumers’ shifting payments expectations?
You do your research when choosing an EFTPOS for your business.
Most modern EFTPOS machines offer contactless technology which will allow you to take most types of payments.
Disadvantages of EFTPOS
1. Merchant fees
Merchant fees are a necessary evil in taking electronic payments.
When consumers use their credit or debit cards to make purchases through your EFTPOS, you end up paying to take each transaction.
You also have to take into account the cost of renting one (or multiple) EFTPOS machines within your business.
We’ve gone into quite a bit of detail as to what merchant fees are, and how you can minimise them in your business in an earlier blog post. Learn more.
2. Each one of your transactions is logged.
EFTPOS automatically creates a record of teach transaction.
Why is this unfavourable you ask?
Some businesses prefer to deal in cash so that they have more flexibility on what they choose to declare as income.
Now we get it.
You’re functioning on razor thin margins and looking for a way to make more.
In saying that, compliance with the law is fundamental to the prolonged success of any business.
Look to increase margin within your business by creating efficiencies, instead of flouting the law.
3. Reliance on networked infrastructure
When your capacity to take electronic payments goes down, this can frustrate your customers.You may even get a few walk outs.This is why it is pertinent that you invest in reliable systems that will not let you down.
Tyro EFTPOS guarantees 99.9% uptime with 3G backup and dual live centres to keep your payments running smoothly all day, everyday.
Should you get an EFTPOS for your business?
Well, the obvious answer is yes.
Customers are turning towards alternative payments to cash more frequently.
For your business to stay relevant, you need to be able to meet your customers where they are.
Get in touch with Tyro to chat about how our EFTPOS facility and hear about our competitive rates.