EFTPOS is a critical tool to allow customers to pay you quickly and securely. However, like any service, EFTPOS comes with associated costs. Understanding these fees is key to managing your business’s expenses and ensuring you're making the most of your payment system. The advantages of providing customers with a fast, secure, and convenient payment method often far outweigh these costs.
Here’s a breakdown of the three components that make up your EFTPOS fees:
1. EFTPOS Terminal Rental Fees
You can a lease a top-of-the-range Android EFTPOS device from us for a fixed monthly subscription fee. Most of our leases span 24-36 months but we also offer flexible short-term rental options to suit your needs. By leasing a terminal you'll get 24/7 support, access to the latest features, and compliance upgrades handled seamlessly for you.
The amount you pay per month to lease your terminal depends on the device model you choose and your contract term length. As your business needs evolve, the flexibility of renting your device means you can upgrade or swap devices as needed. You can get a free, no obligations quote here.
What to consider:
- Renting a terminal provides you with ongoing support and the peace of mind that comes with access to new features and security updates. Plus you avoid the upfront cost of purchasing a device outright and can easily scale your payment system as your business grows.
- EFTPOS terminals have a finite lifespan and are typically subject to “sunset dates”—after which they no longer receive software updates or support. Renting your device means you don't need to worry about compliance.
2. Transaction Fees (Merchant Service Fees)
Your fixed monthly network fee covers accepting payments from EFTPOS and debit cards. For credit cards and contactless payments, a small merchant service fee per transaction applies, typically ranging from 1-4% of the transaction value. Merchant Service Fees are charged by the organisation handling your payment processing. For instance, while your bank can facilitate Visa and Mastercard credit and contactless transactions, you'll need to register directly with AMEX to process American Express payments. This fees can vary slightly depending on your industry and transaction volume, so it's best to consult your provider for precise charges. Many businesses opt to pass these fees onto customers through a surcharge for credit card and contactless payments.
3. Other Fee
Payment network fees - To process EFTPOS transactions you will need to connect your terminal to a payment network. We offer our own network service for just $15 + GST per terminal, per month. Enjoy the benefit of one contract, one monthly payment, and one point of contact for your EFTPOS terminal and payment network. Learn more about the Verifone Network here.
SIM card fees - By connecting your terminal to the mobile data network with a SIM card, you gain the flexibility to accept payments wherever your business takes you. This is particularly beneficial if your Wi-Fi or wired internet connection is unreliable. Our SIM service is available for just $12.95 + GST per terminal, per month, and includes unlimited data.
How to Minimise Fees
- Consider a longer lease, such as 24 or 36 months, to benefit from lower monthly rates
- The Verifone network is the most affordable payment network in New Zealand. Connect a Verifone device to the Verifone payment network and get all the benefits of New Zealand's most advanced payment network at a cost-effective price.
- Surcharging on credit card transactions is an effective way to offset Merchant Service Fees
- If you mainly use your EFTPOS terminal for remote (MOTO) payments Virtual Terminal or Pay By Link might be a better, more cost-effective solution for your business
Understanding EFTPOS fees is essential for any business that accepts card payments. By knowing what to expect and how to optimise your payment solutions, you can ensure that your EFTPOS system is working efficiently and cost-effectively for your business. Remember, when you lease an EFTPOS terminal, you're investing in more than just the device—you're securing comprehensive service and support throughout your contract. This is a crucial factor to weigh when evaluating fees from various providers.
Have questions or need help finding the right EFTPOS solution for your business? Contact us today to explore how we can support your payment needs.
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