EFTPOS Machine Hire Cost
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|
1.1% (excluding GST) fee on each transaction
Additional terminal rental from $29 per month
Only available for businesses transacting less than $20,000/ month
Other fees are payable
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.
|Learn more||Learn more||Learn more|
Here we charge a 1.1%1 (excluding GST) fee for each transaction. This particular pricing scheme is 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. You don’t have to worry about card mix, and the particular type of card you are taking payments with.
With our simple pricing structure2, 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.
The cost of each transaction is made up of an interchange fee as charged by VISA, Mastercard, eftpos, UnionPay; a scheme fee as charged by the schemes to us3 and Tyro’s margin. So basically, Tyro charges the actual cost for each particular transaction and adds its margin to it.
Different card types attract different interchange 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.
Note: All fees and charges are quoted exclusive of GST.
1 Other fees A Switching fee is payable to Tyro (currently 0.10%) for some schemes (including American Experess/JCB and Diners Club) where you have a separate agreement with that scheme. A MOTO fee, for Visa/Mastercard card-not-present transactions (currently 0.15%). An
International Service Assessment fee for Visa/Mastercard international Transactions payable as charged by Visa (the International Service Assessment Fee) and Mastercard (the Mastercard cross Border transaction assessment fee) with an addition additional international service assessment fee for DCC transactions, rebates apply for DCC Transactions.
2 Simple Pricing is where you pay Tyro a set fee for each transaction (merchant service fee) that includes both the Tyro margin and the interchange and scheme costs associated with the transaction.
3 Interchange fees are charged by Tyro at the actual rates published by the schemes.