{"id":38806,"date":"2023-10-20T14:59:04","date_gmt":"2023-10-20T14:59:04","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/small-businesses-urged-to-rethink-eftpos-provider-startupsmart\/"},"modified":"2023-10-20T14:59:04","modified_gmt":"2023-10-20T14:59:04","slug":"small-businesses-urged-to-rethink-eftpos-provider-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/small-businesses-urged-to-rethink-eftpos-provider-startupsmart\/","title":{"rendered":"Small businesses urged to rethink Eftpos provider – StartupSmart"},"content":{"rendered":"

An independent Eftpos provider has attempted to convince small businesses to consider alternatives to ePAL in light of new interchange fees, as research shows Eftpos transaction volume continues to grow. <\/span> <\/p>\n

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The Eftpos system, which is run by ePAL, is owned by major entities including banks and supermarket chains Coles and Woolworths.<\/p>\n

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Whenever a consumer made a purchase under the old Eftpos structure, the consumer\u2019s bank paid an interchange fee to the retailer\u2019s bank for processing the payment.<\/p>\n

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The fee, which is fixed at four to five cents per transaction, is set by the Reserve Bank.<\/p>\n

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But on October 1 the process was reversed, with the retailer\u2019s bank paying a five-cent interchange fee to the consumer\u2019s bank for each Eftpos transaction over $15.<\/p>\n

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Jost Stollmann, chief executive of independent Eftpos provider Tyro, says the new system will create an additional $1.23 billion in income for the banks this financial year.<\/p>\n

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According to Stollmann, the new system doesn\u2019t reflect the level of service delivered to consumers and retailers over the last year \u2013 the banks have been plagued by \u201ctechnical glitches\u201d.<\/p>\n

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\u201cThese fee increases come during a year when the big banks failed to provide the reliable and regular Eftpos service that consumers expect,\u201d Stollmann says.<\/p>\n

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\u201cHow can the banks justify such fee increases when their service is so unreliable?\u201d<\/p>\n

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In a bid to carve a larger slice of the Eftpos pie, Stollmann says merchants should consider switching to an independent option if they\u2019re unhappy with the service of their current provider.<\/p>\n

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\u201cThey should give the alternative a go. Banks have to perform or lose the business,\u201d he says.<\/p>\n

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It\u2019s becoming increasingly important for small business owners to rethink their Eftpos provider, with new researching showing Eftpos volumes continue to grow as the role of cash diminishes.<\/p>\n

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The growth of Eftpos is detailed in the latest Eftpos Bulletin, issued by Sefiani Communications Group on behalf of ePAL, which analyses RBA payments data to the end of August.<\/p>\n

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\u201cEftpos volumes continued to experience growth, with the total number of transactions increasing from 187.6 million in July to 191.5 million in August,\u201d the report says.<\/p>\n

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\u201cThis was a significant 16.5% above the August 2010 result. The total value in August was $11,635 million, up by 2.6% from July and 13.5% above August 2010.\u201d<\/p>\n

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According to the report \u201cthe great majority\u201d of Eftpos transactions are purchases, and there were 189.9 million in August 2010.<\/p>\n

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\u201cThis is a massive 35% above the level of August 2009. The value of these purchases was $10.3 billion in August 2011 and this was 28.1% higher than two years ago,\u201d the report says.<\/p>\n

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\u201cVolume is growing faster than value as Eftpos further penetrates the smaller ticket size markets.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

An independent Eftpos provider has attempted to convince small businesses to consider alternatives to ePAL in light of new interchange<\/p>\n","protected":false},"author":2,"featured_media":61516,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/38806"}],"collection":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/comments?post=38806"}],"version-history":[{"count":0,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/38806\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media\/61516"}],"wp:attachment":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media?parent=38806"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/categories?post=38806"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/tags?post=38806"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}