Small and medium businesses could possibly save money by changing how their customers’ tap and go payments are processed.
Previously, payments were processed either thru Visa or Mastercard which results in higher costs for merchants, whereas today, Reserve Bank, ANZ and Westpac started offering businesses contactless contactless debit card payments to be processed by eftpos which costs lower.
According to retailers, the routing of debit payments through the international card schemes' systems has cost them hundreds of millions of extra fees.
John Collins, ANZ's payments and merchant services lead, said “Based on the statistics that we have looked at, and the uptake over the last week, there would be a large proportion of our customers that will benefit from merchant choice routing.”
However, the value of savings still depends on the size of the transactions that the business processes and the fee arrangements of their bank.
Mr.Collins further noted that, “The merchants need to make a conscious decision that it’s right or not right for their business, rather than us making a decision on behalf of them in terms of how they run their business.”
Tyro chief executive Robbie Cooke started offering "least-cost routing" to merchants in March last year and has found out that its merchants had saved more than $2.7 million from the change, with some businesses saving more than $50,000 in fees.
According to Paul Evans, Suncorp's executive manager for deposits and payments, “We’re proud to be one of the first banks to offer small business customers choice in managing the cost of accepting payments from their customers.” Merchants need to reconsider their payment processes if they want to save more on extra fees.
Source: Sydney Morning Herald
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