The cost of accepting EFTPOS in New Zealand varies depending on the device you use, how many devices you have, which network you connect to, and if you accept credit cards.
To accept EFTPOS payments in New Zealand you will need:
- to lease or purchase an EFTPOS machine;
- connect your EFTPOS machine to a payment network, and;
- arrange a merchant facility with a bank.
So exactly how much does all of this cost? First up, let's look at how much it costs for the device itself.
How much do EFTPOS machines cost?
If you lease your EFTPOS terminal you can expect to pay from around $35 - $50 + GST per month, per EFTPOS terminal, depending on your terminal model. If you purchase your EFTPOS terminal you can expect to pay a one-off purchase price of around $1000 - $1900 + GST, per terminal. If you choose to lease your EFTPOS terminal, you'll pay a subscription fee per EFTPOS terminal, per month - depending on the level of support you need, your terminal model (fixed vs. mobile) and the contract length you choose. The key benefit to leasing your terminal is that maintaining payment compliance and related responsibilities is included in your leasing agreement.
Take our quiz: Should I lease or purchase my terminal?
An alternative to an EFTPOS machine is a small terminal known as an ‘mPOS’ device. mPOS devices are available on subscription from your merchant bank.
How much do ‘mobile EFTPOS’ machines cost?
Mobile EFTPOS, or 'mPOS' devices, cost around $25 - $40 + GST per device, per month. These devices look like EFTPOS terminals, but don't have a receipt printer. Some banks also charge a set-up fee starting from $49 + GST, up to $99 + GST. In addition, accepting credit cards on mPOS devices is mandatory which means you will incur Merchant Service Fees whereas accepting credit cards is optional on EFTPOS terminals.
mPOS devices are perfect for 'micro-merchants' who process low volumes of transactions. Businesses with a medium to high volume of transactions are better suited to an EFTPOS machine, because:
- The devices run on battery power, so you need to make sure the device is charged, or you have a charging facility with you whenever you are trading.
- mPOS devices don't all offer the same range of functionality that EFTPOS machines offer, for example:
- Receipt printing
- MOTO (Card-not-present) transactions
- Credit card surcharging
- Offline transactions are only available on some devices
- POS integration is only available on some devices
Tips: Get tips on how your EFTPOS machine can help you recoup or save money here
The next key component for accepting EFTPOS is a connection to a payment network.
How much does it cost to connect to a payment network?
There are two payment networks to choose from in New Zealand: The Verifone Network and the Worldline network. We’re the only terminal provider with our very own network - the Verifone network.
There is a monthly fee per terminal for payment network connection. Worldline charges $18.90 + GST per terminal, while we only charge $15.00 + GST per terminal.
A key benefit of choosing us as your terminal provider is that your terminal and network services can be bundled. This means one contract, one monthly payment for both your terminal subscription and network and just one number to call for support.
Connecting to both networks is free over a standard broadband connection.If your terminal connects using mobile data your terminal provider will include a mobile data SIM with your terminal. The cost of the SIM and mobile data usage will either be included in your rental price, or you may incur a ‘SIM’ fee of around $13.00 + GST per mobile terminal, per month.
How much does it cost to accept credit cards?
The last thing you need to accept EFTPOS transactions in New Zealand is a merchant facility with a 'merchant acquiring bank'. Your bank oversees the transfer of funds from your customer's bank accounts to your merchant account. The bank can also provide you with a facility for accepting credit cards.
When your customers use an EFTPOS debit card, the transaction is free for you to process. If you choose to accept credit cards however, you will incur a 'merchant service fee' (MSF) charged monthly and payable to your merchant acquiring bank. Contactless 'PayWave' debit cards also incur merchant service fees.
Your Merchant Service Fee is made up of Interchange Fees charged by the cardholder’s bank (known as the card ‘Issuer’) and fees charged for the provision of card payment services by the card schemes, the payment networks and your bank.
Most of your MSF is made up of Interchange Fees. These are fees charged by the cardholder’s bank to help cover the cost of reward schemes and fraud protection, as well as costs incurred by your bank to process the transaction. The fee is set by the credit card schemes and is influenced by a number of factors including the type of transaction (e.g. card-present vs. card-not-present), the card type (contactless vs chip and PIN), and even your industry.
Interchange fees can be charged as a set dollar amount or as a percentage of the transaction value. There are generally three different pricing structures for MSFs:
- Fixed - You pay the same MSF rate each month.
- Variable - Your MSF will vary month-to-month depending on transaction value, average transaction size and the cards you process since cards issued overseas incur higher transaction fees.
- Interchange Plus - Your MSF is made up of two separate rates - the actual interchange costs for each type of Visa and Mastercard transaction, plus a separate 'acquiring' cost.
mPOS 'mobile eftpos' merchant service fees
The MSF for mPOS devices is an example of a fixed MSF. The rates differ from bank to bank, but if you use a mPOS device, you can expect to pay between 2.6% and 2.9% of the value of your Visa and Mastercard credit and international card transactions. Some banks have lower rates for UnionPay and contactless debit card transactions.
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Wondering how much your EFTPOS solution is going to cost you? Need advice about which solution is best suited for your business? Our EFTPOS experts can help.
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