Electronic payment systems have significantly progressed in recent decades. Customers are using electronic payments more than ever before. From swiping your card and signing to pay, to entering a PIN, contactless payments continue to grow as well. According to the Reserve Bank of Australia’s paper Trends in Payments, Clearing and Settlement Systems, cash payments made up just 37 per cent of consumer transactions valued at over $10 in 2016. Several new electronic payment systems have surfaced in recent years. This is due to the move away from cash payments in favour of electronic payments,
If your business uses an electronic payment system, making sure you’re using the best system for your needs is crucial. Not only will spending some time picking the right system help you save money, but it will give you an opportunity to think about additional ways to better serve your customers with convenient payment options. Below, we’ve provided an overview of some of the most popular electronic payment systems in the market.
Traditional Credit Card Terminals
Traditional credit card terminals and readers, for example, EFTPOS terminals, allow you to accept credit and debit card payments. The newer terminals also allow businesses to accept contactless payments with integrated chip technology. The best part of using these systems is the ease of setup and minimal training required to operate the terminals. On the downside, processing fees vary by card type, there’s a cost for purchasing or renting the equipment, and traditional terminals don’t automatically integrate with other business systems such as your accounting software.
Pricing: ranges between $0 and $1,200 for the machine plus merchant fees depending on transaction volume.
Mobile Payment Systems
Mobile payment system and devices offered by banks allow businesses to accept payments anywhere, anytime. This is perfect for people who sell at markets or mobile businesses as it allows businesses to accept payments in realtime.
Beyond being able to process transactions anywhere, mobile payment systems are typically cheaper than traditional payments systems. With these cost savings, you can invest more money back into your business and focus on the other important parts of being a successful business owner.
Pricing: ranges between $0 and $99 for the equipment, plus monthly fees. For example, Square charges 1.9% for each transaction while PayPal Here charges 1.95% per transaction and 2.9% + $0.30 for transactions using manual card entry. The devices offered by banks typically charge a monthly fee from $60 to $150 depending on your monthly turnover of card transactions.
Beyond Payment Systems
Another alternative to traditional credit card terminals and mobile payment systems is Beyond Payment Systems. For businesses with more than $20k worth of credit card transactions (with an average value over $25 per transaction) per month, Beyond Payment Systems offers fee-free payment processing for the life of the terminal contract. The system also allows businesses to legally pass credit card fees straight to the customer. This helps businesses to save on processing credit card transactions.
Pricing: free for businesses who meet the minimum requirements.
The features and prices of each electronic payment system typically differ based on your transaction volume. Beyond considering your transaction costs, you also need to consider how your customers prefer to pay. This will help you to make sure you’re making a decision that’s suitable for your business and your customers.
Speak with a lending specialist today about funding the growth of your business.