If you are wondering how much an EFTPOS machine costs, you should also take into consideration how much not taking electronic payments is costing your business.

We’ve written extensively about the advantages and disadvantages of EFTPOS, and how you can reduce your merchant fees. But today, we’re more interested in helping you understand how EFTPOS is priced, so that you can make the best decision for your business.

What does an EFTPOS Machine Cost

When choosing an EFTPOS machine for your business there are several things you should be considering:

1. EFTPOS Machine Hire Cost
To take electronic payments, you will need to rent hardware that allows you to do this. In your consideration process think about how many terminals you will need for service, and work this number into the total amount of merchant fees you will be paying.

2. Transaction Processing Costs
This is where things start to get a little confusing.
Your EFTPOS terminal rental cost isn’t the only thing you should be considering when you’re shopping for a solution.
EFTPOS providers (both the banks and private entities) take a clip on each transaction for processing credit cards.

At Tyro, we make things easier with our three EFTPOS pricing models:

Special Offer Simple Cost Plus
  • 0.99% (excluding GST) cut on each transaction
  • Only available for businesses transacting less than $20,000/ month
  • Exclusions apply
  • We give you a fixed percentage or cost for transacting within 3 – 4 card categories.
  • You incur a cost on each transaction depending on the wholesale cost to transact for each card type.
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Special Offer

Here we take a 0.99%1 (excluding GST) cut of each transaction. This particular pricing scheme is only available for businesses transacting less than $20,000 / month.

What does this mean for you? It means a simple, flat fee to accept all cards except for Diners Club, Amex, and JCB. This includes the rental cost of one EFTPOS terminal.

You don’t have to worry about card mix, and the particular type of card you are taking payments with.

Simple Pricing

With our simple pricing2 structure, we break down your fees into three or four common categories – standard, premium, international, and scheme debit.

We then give you a fixed percentage or cost for transacting with those particular categories. This gives you a little more clarity on your overall costs as you will only be dealing with 3 – 4 categories as compared to being open to the full wholesale cost of transaction on each individual card type.

Cost Plus

Our costs are made up of interchange fees, outlined by Visa, Mastercard, EFTPOS, Union Pay and a scheme fee 3. Interchange fees are paid by the acquiring institution (i.e. Tyro) to the issuing bank (i.e. the cardholder’s bank). The scheme fee is paid by Tyro directly to Visa or Mastercard (depending on the card type presented). Tyro then applies a margin to the actual costs of processing eftpos transactions.

Different card types attract different costs depending on their reward systems and attached programs. With Cost Plus you get the true cost of transacting with each card type.

Think about it this way. You have your cost of goods, and you have the margin you make on your products.

For example – you may sell a small cup of coffee for $3.50. Say the cost of goods (i.e. coffee beans, milk, sugar, etc.) work out to $2.00. Throw in your cost to operate and round that number up to $2.25 for each cup of coffee. You make a 35% margin on each small cup of coffee. This number will be different with a larger sized coffee.

It’s exactly the same with card schemes.

To put it simply, with Cost Plus, instead of getting charged the average cost of a card category, you incur a margin on each transaction depending on the wholesale cost to transact for each card type.

EFTPOS you can count on

Want to know more? Get in touch with our team to hear about how we can help your business with payments.

1 Other Tyro fees: An AMEX/JCB and Diners Club switching fee is payable to Tyro (currently 0.10%) for all AMEX/JCB/Diners transactions processed using Tyro terminals and if settled by Amex. Visa/Mastercard card-not-present transactions like MOTO or online payments incur an additional fee of 0.15%.

Note: All fees and charges are quoted exclusive of GST and may be varied under the Tyro EFTPOS Banking Terms and Conditions. American Express Terms and Conditions apply and are available at www.tyro.com/american-express.

2 Simple pricing is where you pay Tyro a Merchant Service Fee (MSF). The MSF that you pay includes both the Tyro margin and the costs associated with the transaction as set out in the Application Form.

Note: All fees and charges are quoted exclusive of GST and may be varied under the Terms. American Express Terms and Conditions apply and are available at www.tyro.com/american-express.

3 *The total merchant service fees (MSF) are comprised of Tyro’s merchant acquiring fee (MAF) along with the interchange and scheme fees. Interchange fees are set by the card schemes and are paid by the acquiring institution to the card issuing institution. Interchange fees are subject to change and will be charged by Tyro at the actual rates published by Visa at https://www.visa.com.au/about-visa/interchange.html, by Mastercard at https://www.mastercard.com.au/en-au/about-mastercard/what-we-do/interchange.html and EPAL at https://www.eftposaustralia.com.au/about/resources/scheme-fees-interchange-fees/.