EFTPOS terminal fees

Choosing the right EFTPOS Solution cannot always be easy, in fact finding the right person to help can be just as difficult. Smartpay want to make the process as simple and easy as possible, that is why we have developed a series of questions Merchants can ask their bank to make sure they are getting the most out of their EFTPOS.

1. Do they offer a single flat rate Merchant Service Fee (MSF)? Or does it vary depending on the type of card presented?

Many banks advertise that they offer merchants a single flat rate on their MSF, also referred to as a Blended MSF. However when they receive their monthly merchant Statement they are surprised to find that the “single MSF rate” is only for standard credit cards.

Many banks in Australia now have a Split MSF which assigns a different percentage to the various types of credit cards presented. For example if a merchant is presented a Platinum Visa credit card they will incur more fees under this model than they would if the customer had used a standard bank credit card. In many cases we have found differences in merchant’s MSF rise as much as 4% per transaction.

2. Do they charge a Minimum MSF, Participation Fee or any other hidden fees?

Around 80% of the banks within Australia charge a Minimum Monthly MSF of around $20 – $30. For example at the end of the month if a Merchant has only accrued $5 in fees and they have a Minimum Monthly MSF of $25, their fees are increased by $20 to meet the minimum MSF. Smartpay has solutions where you only pay for what you use.

3. Do they charge a cancellation fee even after the contract has ended?

Most banks within Australia charge merchant’s an early cancellation fee for terminating their Merchant Account before the end of the contract. However quite a few Australian banks also charge Merchant’s a cancellation fee even when the contract period has finished. It pays in the long run to check with your bank that they aren’t penalising merchants for cancelling a completed contract.