Why Businesses Should Accept American Express

Looking for ways to save money in your business? Here are five. The primary purpose of any EFTPOS machine is to enable customers to pay for products or services safely and securely. However, operating a business is expensive — and accepting cards and other cashless forms of currency comes at a cost. Zeller was established to help Australian businesses grow, so it makes sense that together, Zeller Terminal , Zeller Transaction Account , and Zeller Debit Card can save you money. Here are five of the ways Zeller helps keep more money in your business. 1. One low, flat fee. Transaction charges are an expense a business incurs each time an electronic payment is processed. Depending on your payment services provider, these fees can vary widely — making it difficult to anticipate what charges you'll be up for at the end of the month. Zeller processes every tapped, dipped and swiped transaction (including AMEX) for one low rate of 1.4%. Quinton Evens, owner of White Lily Couture , recently made the switch to Zeller. “It started with thinking, how we can use our cash smarter? We looked at other banks and terminal options, but they couldn’t beat our current rate," he says. "When we calculated how much we were paying versus how much we could save with Zeller, it was a no-brainer. Saving $10,000 a year on transaction fees is insane." 2. Automatic surcharging for zero-cost EFTPOS. Surcharging is a part of modern-day life, and an easy way to recoup your cost of acceptance from customers who choose to use cashless forms of payment. The number of customers who carry cash is dwindling, meaning most sales these days come at a small cost — which you can pass on to the customer as a surcharge. For every purchase made with a card or device that is tapped, dipped or swiped to Zeller Terminal, the transaction cost is just 1.4%. As a merchant, you are legally able to pass your cost of acceptance on to your customers – giving you fee-free EFTPOS . Some EFTPOS providers charge merchants an additional fee to switch surcharging functionality on, and make the switch irreversible. This effectively forces merchants to make a definitive decision for their business, one way or the other, and financially commit to it. But how do you know if surcharging is right for your business, and your customers? Zeller Terminal’s surcharging functionality can easily be toggled on from Zeller Dashboard. You can even customise your surcharge amount. With surcharging enabled, your Zeller Terminal will automatically apply a surcharge to every transaction total, after your customer's card is presented, but prior to any card verification and transaction authorisation steps (such as PIN entry or signature). If you decide surcharging is not for you, simply toggle the functionality off. Considering implementing a surcharge at your business? Read our article first to determine if it’s right for your business and your customers, or if there’s another way you can recoup the cost of transactions. 2. Fast settlement. For many merchants, the reality is that funds accepted via their EFTPOS machine aren’t cleared for one or two business days. That means that any payments accepted at the end of the week are often not available to be spent until Tuesday or Wednesday, the following week. The faster you can access your funds, the faster you can put them to work — paying staff, ordering supplies, and investing in your business. That’s why, when you accept funds via Zeller Terminal and have them settled in to your free Zeller Transaction Account, you are able to use your Zeller Debit Card to spend the funds the very next day. 3. Easy tipping. Tipping may not be an ingrained part of Australian culture, but by not offering it you’re removing the opportunity for customers to reward your staff for their efforts. You could be costing your business — especially if you have a large tourist clientele. Some EFTPOS terminals will prompt customers to leave a percentage-based tip, or to key in a specific amount. With Zeller, you have the option to do both, one or the other, or neither. Why not enable Zeller’s tipping functionality, and leave it to the customer to decide whether they want to tip or not? Zeller Terminal enables you to prompt your customers to leave a dip during the transaction flow. This is particularly handy for hospitality-based businesses, however, these days many Australians are also tipping for services rendered. So, how much should you prompt customers to tip? Some sources say 10% is typical. Others say $5 per person, or more if dining at a high-end restaurant. With tipping enabled, Zeller Terminal can prompt your customer to either enter a numerical figure or select a percentage-based tip. You can even customise the percentage-based tip amounts – say, 5%, 10% and 20%. 4. Transaction visibility. In order to appropriately manage your cash flow and identify any opportunities to save costs, you need visibility over your transactions. Any time you have the Zeller Terminal in hand, you can scroll through a chronological list of transactions. Instead of manually counting a cash draw or reconciling your paper receipts, simply tap Transactions from the Navigation menu and a list of transactions will appear. Knowing the state of your takings at any point in time is important. If you operate a food truck, for example, you might have a specific target to meet. With an hour to go until closing time, wouldn’t it be handy to know you only have $150 in transactions to go until you hit your goal for the day? Armed with that knowledge, you might decide to combine some of your items into a special — meaning less food wastage, and a strong end to the day. 5. Fee-free business debit card. Spend the funds settled into your Zeller Transaction Account using the Zeller Debit Card, and you won’t pay any fees for domestic purchases. There’s no annual card fee, either. You can use it both in person and online. We offer this to provide you more affordable business spending. Funds accepted through a Zeller Terminal will be swept into a Zeller Transaction Account overnight, and available for you to spend using your Zeller Debit Card the next business day. You are, however, able to settle funds to an external third-party bank account instead. By sharing your details with us, we may contact you from time to time. We promise we won’t bug you — and you can unsubscribe from communications at any time.

Considering a card machine? Here's what to weigh up. Having a reliable card machine and accepting card payments is becoming increasingly important to Australian businesses. Contact payment is now the norm, so when you’re starting up a business, one of the first things you’ll need to consider is whether to get EFTPOS (Electronic Funds Transfer at Point Of sale). While there has been a rapid decline in cash payments over the past decade, the rise in payment technology means it’s crucial to be informed about the various EFTPOS options that are available to your business so you can make the right choice. Looking for more information about what EFTPOS is and how it works? We’ve written a handy article explaining exactly that. Let’s take a look at the advantages and disadvantages of using EFTPOS in your business. What are the advantages of EFTPOS? The advantages of EFTPOS include faster transactions, encryption for security, quicker access to your funds, the ability to offer multiple payment methods for your customers' convenience, and proof of payment with a digital or hard-copy receipt. Faster transactions A card machine has the superior ability to speed up transactions, which means you can create a better service experience for your customers while also lowering your labour costs. For the hospitality industry, increased efficiency is the key to handling rush hour. This is the time your business will be making the most money so it’s important to be able to keep customer satisfaction levels high while finalising transactions quickly. Having EFTPOS machines handy helps your employees keep up the pace during those frantic peak times. More secure EFTPOS machines offer businesses a much higher level of security than when you’re dealing with cash and keeping large quantities of it in your till. Thieves primarily target businesses that make a lot of cash quickly. By having card payments where the funds transfer directly into your bank account, you are more likely to avoid being a victim of this type of petty crime. Quicker access to your funds Instead of making a time-consuming trip to the bank to deposit cash, then waiting for it to hit your account, you can accept funds through Zeller Terminal. The money will conveniently settle in your account by the next business day. If you sweep the funds into a Zeller Transaction Account, they can be available even sooner. This helps increase your business's cash flow. Some card machine providers have setups that take longer, so if fast access to takings is important to you, look for a provider that prioritises this. Accept multiple payment methods EFTPOS terminals can accept a wide variety of payment methods, including contactless technology. Options include AMEX, Apple Pay, Google Pay, eftpos, and more. Letting your customer choose what’s convenient for them will ensure you meet their needs. It's a key part of providing exceptional, memorable customer service as a whole. Proof of payment An EFTPOS terminal will provide your customer with a physical receipt, which proves what, when and how they purchased goods or services from your business. Some providers, such as Zeller, will also allow you to email or text a digital receipt to your customers, so they can keep it for their records. Even if your customer doesn’t take the receipt, you’ve got details of the transaction to ensure there’s proof of payment. There’s no need to count your till when a customer says they think they paid with a $50 note, but your staff gave them change for $20, either. Disadvantages of EFTPOS Merchant services fees Each time a customer makes a card payment, you have to pay a transaction fee. When you’re being charged a different rate for accepting AMEX cards, eftpos, and the rest, it can become very difficult to work out how much you’ll need to pay your merchant services provider at the end of the month. This is one reason why the typical merchant statement can be tricky to understand. However, you have the option to pass that off as a surcharge. Look for an EFTPOS terminal provider that charges one flat rate, so you can anticipate your charges. Every card tapped, dipped or swiped on Zeller Terminal costs just 1.4%. You can easily toggle surcharging functionality one or off anytime, from Zeller Dashboard . Risk of downtime EFTPOS terminals rely on a working internet connection to make the transaction happen. Some internet downtime is unavoidable, whether due to service interruption or upgrades — it’s out of your control. When this happens, you won’t be able to accept payment. This is extremely frustrating for a customer and potentially harmful to your business reputation. Decoy Cafe , in Melbourne CBD, was experiencing multiple internet dropouts at peak periods. This rendered their card machines, provided by one of Australia's big four banks, useless — and forced staff to ask customers to return the next day to pay for their purchases. However, since making the switch to Zeller Terminal, Decoy has resolved its downtime issues. Zeller SIM Card (powered by Optus) provides backup internet connectivity, in the event your WiFi cuts out, so you can continue taking payment. Should you get an EFTPOS machine for your business? Without a doubt, you should be operating your business with a quality EFTPOS machine that’s available to your customers however they pay. Every EFTPOS machine is different, from the speed of settlement to the merchant services fees. Make sure you consider all the pros and cons before you make a purchase so you select the card machine that’s right for your business.

Understanding how much accepting card payments really costs your business. Let's be real: the vast majority of your customers are paying on card these days. Yet when it comes to EFTPOS transaction fees and associated costs charged by banks, there’s been little evolution. The Reserve Bank of Australia’s Consumer Payments Survey  suggests that as of 2022, cash payments represented just 16 percent of in-person transactions, continuing the downward trend that has been underway for nearly two decades. Despite the transformation of the payments landscape on the side of the customer, banks have made minimal effort to assist business owners in adapting to this evolving environment. The lack of flexibility on the part of the big four has made fertile ground for tech-forward payment solutions such as Zeller that are heralding a revolution in business banking — without the banks. Read on for a transparent breakdown of what fees are involved with traditional EFTPOS plans, and how Zeller Terminal could be a smarter alternative for when your business needs to accept card payments. What is an EFTPOS transaction fee? An EFTPOS transaction fee refers to the amount a business is required to pay whenever it processes a card payment with an EFTPOS terminal. With most traditional providers, the fee you pay will vary depending on what type of card a customer uses and will usually be charged as a percentage of the transaction value. Transaction fees, however, are just half of the picture. There can be plenty of other costs associated with EFTPOS, and it pays to understand these before you get started. Kirsten and Malcolm are just some of the thousands of business owners who have cottoned on to the fact that, by virtue of the increased volume of card users, the banks’ EFTPOS transaction fees and costs have become extortionate, despite there being no material improvement in the service provided. Whether you’re planning for your new business or are shopping for a better deal, it’s important to understand the terminology, and how the fees are calculated so you don’t get caught out later. The four factors to consider when calculating your EFTPOS costs 1. Establishment and Setup Establishment fee When you get started with EFTPOS, banks typically charge a one-off establishment fee that covers the setting up of your payment terminal. It is usually charged per facility, so if you have more than one EFTPOS machine , you will be charged for each. At Zeller, the only upfront cost you'll incur is the price of the Terminal, aside from that, it’s free to get started. What’s more, when you sign up, you’ll immediately receive a free Zeller Transaction Account which you can choose to settle your funds into and use to keep track of your business cash flow. You can also order a free Zeller Debit Card to manage your business expenses. Monthly service/plan fee Depending on the bank and the pricing plan you establish, you will also likely have to pay a monthly service/plan fee. This fee is charged to cover the costs of providing your payment service. At Zeller there is no monthly service fee. POS integration fee If you would like to integrate your EFTPOS terminal to your point-of-sale, the banks will typically charge you a one-time fee. At Zeller, integrating your POS and your terminal is easy and you can do it yourself – for free. Of course, if you have any issues, our support team is always here to help, at no cost. 2. EFTPOS Transaction Fees Minimum merchant service fee If your total sales fall below a certain amount, banks will typically charge you a monthly fee per EFTPOS machine. At Zeller, we pride ourselves on our transparent pricing. There are no minimum sales requirements, so even if you don’t start using your Zeller Terminal straight away, you won’t be charged until you make your first sale. Interchange & scheme fees When a customer uses a credit or debit card to make a purchase, a number of fees are charged between your bank, your customer's bank and the payment card network (eg. Visa, Mastercard, or American Express). Without getting into the weeds, (you can learn how EFTPOS transactions work here ), the important thing to understand is that the transaction fee you pay your bank, is entirely dependent on the type of card your customer uses, and it could be anywhere between 0.2% and 3.5%. While Zeller also incurs the same variable interchange and scheme fees as the banks do, we simply charge you one fixed amount, no matter what card a customer uses. Every payment that is tapped, dipped or swiped on a Zeller Terminal (including payments using an American Express card) costs just 1.4%. If the payment is made over the phone, the transaction costs 1.7%. Not only does this make reading your merchant statement much less of a headache, but more importantly, it allows you to more precisely forecast your EFTPOS transaction fees. This means more accurate budgeting, and ultimately, healthier cash flow for your business. What’s more, having a simple flat fee makes it much easier to calculate a surcharge for zero-cost EFTPOS (more on this below). Return or refund fees When you need to refund your customer, the banks may charge a flat fee per refund transaction processed where a credit or debit card has been used. The fee is typically based on the volume of refunds processed. Zeller does not charge a return or refund fee. Chargeback fees A chargeback is a transaction reversal initiated by a cardholder through their bank or credit card issuer. It allows the cardholder to dispute a transaction and request a refund of the funds. If this happens, the bank will charge you a processing fee for investigating and resolving the dispute. With Zeller, you will not be charged if a customer successfully disputes a chargeback. 3. EFTPOS Hardware Monthly terminal fee When you sign up to EFTPOS with a bank, they provide you with the machines under a rental agreement, you do not own them outright. You will therefore be charged a monthly fee to cover the rent of your EFTPOS terminal(s). The fee varies depending on the type and quantity of terminals you use. Zeller EFTPOS Terminal costs $259 and is available to buy outright. Aside from the accessories and stationary mentioned below, there are no additional costs associated with the hardware. Equipment not returned/damaged fee Given that bank-issued EFTPOS terminals remain the property of the bank, if these are not returned or become damaged due to negligence or misuse, you will be charged a fee. Paper rolls and accessories For any additional accessories you request, such as terminal stands, EFTPOS cables or paper rolls; a cost is incurred. Note that many bank-provided EFTPOS machines do not have digital receipt capability, so it’s important to take the cost of paper rolls into consideration. The beauty of Zeller Terminal, is that you can choose to SMS or email customers their receipts — removing the need for printer paper, and further reducing your costs. 4. Surcharging In Australia, it is legal to pass the cost of your EFTPOS transaction fees onto your customer. This process of surcharging is referred to as 'zero-cost EFTPOS'. While it's gaining widespread popularity among business owners, it's important you understand how it works, because charging more than what you pay in transaction fees can get your business into trouble. With a bank-provided EFTPOS machine, surcharging requires the merchant to calculate their own surcharge rate. Legally, the rate needs to be set at the average acceptance cost of the lowest card system . For instance, your surcharge fee might need to be set at 1% — even if the bank charges you 2.6% to accept American Express cards. It’s important to take this seriously as the Australian Competition and Consumer Commission (ACCC) may take action against any merchant whose card surcharge exceeds its ‘cost of acceptance’ (that is, the amount it costs you to accept a payment from a particular type of card). Having a complicated fee schedule makes it very difficult to work out the correct rate to surcharge at, especially if you are running a new business with no history of EFTPOS transactions to base your decision off. Thanks to Zeller’s flat rate applied to all cards, surcharging is simple. Business owners have the flexibility to toggle surcharging on or off — as and when it suits their business — and to choose to pass on the entire EFTPOS transaction fee, or just a fraction. With surcharging enabled, your Zeller Terminal will automatically apply a surcharge to every transaction total, no calculation required. Read our blog to find out whether surcharging is right for your business . The way people are paying has evolved, so it’s time your EFTPOS process did too. When figuring out what EFTPOS terminal is right for your business, it’s important not to simplify the decision down to transaction fees alone. The bank charges associated with setting up the service, connecting your POS, renting the terminal and paying for additional fees for refunds or receipt rolls can end up costing you much more than you think in the long run. Additionally, complex transaction fees that vary depending on each customer’s card makes surcharging a complicated, and stressful, experience. The way people are paying has evolved, so it’s time your EFTPOS process did too. Join the thousands of Australian businesses simplifying their transactions and saving money with Zeller.