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Unhappy With Your EFTPOS Provider? The Majority of Retailers Are — Here’s How To Fix It
In today’s near-cashless economy, an EFTPOS terminal is a critical business tool. Despite the growth in e-commerce brought on by COVID-19, Australian shoppers are increasingly opting to make purchases face-to-face; 67 percent of all payments are made in person, and that percentage is growing at a rapid pace.
When they reach the counter, consumers are reaching for their credit cards, smartwatches or contactless-enabled device over cash — and expecting to be able to pay for their purchases quickly and conveniently. However, the majority of Australian retailers aren’t happy with their current EFTPOS payments provider.
Seven in ten Australian business owners are dissatisfied with the outdated EFTPOS technology currently on the market. Research reveals that 71 percent of Australian business owners using clunky EFTPOS terminals regularly consider switching providers, as a result of high costs and expensive fees, slow deposits that impact cash flow, and the lack of local support typically provided by the big banks and incumbents.
As the economy picks up, there will likely be unprecedented growth in all areas of small-to-medium business — especially retail. In fact, there’s even a word for it. The term ‘revenge spending’ has been coined to describe the post-lockdown cash splash experienced in other newly-opened markets across the globe. For existing retailers, this shift presents an opportunity to diversify or grow their product line and take advantage of consumers’ pent-up desire to spend. For new merchants, it could be the catalyst to explore a new venture.
Will your business’s payments provider enable you to capitalise on this anticipated uptick in consumer spending?
Preparing for the cash splash
The right provider can help you to speed up cash flow, provide a better customer experience, and keep more money in your store. When searching for a new payments solution, there are four key considerations to keep in mind.
1. Quick set-up
For many retailers, the biggest hurdle to establishing a new venture is financial services. The ability to accept payment from a customer and have funds deposited into your merchant account, quickly and securely, so that you are able to spend or reinvest your takings into your store is critical. Yet while large enterprises enjoy the privilege of financial solutions tailored to their specific needs, the vast majority of Australian business owners are often required to weave together multiple products from different providers.
Any retailer that has gone through the process of setting up their business banking will understand the frustrations — long lines at the bank, multiple identification processes, phone queues, and sometimes even the requirement to use outdated technology, such as fax machines. This can take weeks, restricting retailers’ ability to sell their wares in person. Zeller was established to help merchants overcome these roadblocks.
Instead of taking days or weeks to get set up, merchants can sign up for a Zeller in minutes — and most businesses can begin accepting payment immediately.
2. Fast deposits
Cash flow is critical to business success. A healthy cash flow circulates enough money to pay staff, fulfil invoices for more products, and invest in future growth. The quicker funds are settled, the quicker those funds are able to be spent or reinvested in your store. However, reliable access to available funds is proving increasingly difficult to achieve.
Lack of cash flow is one of the main reasons half of Australian small to medium businesses go out of operation in the first three years, and a recent study shows 46 percent of small businesses remain cash flow negative — which means more money is flowing out the door than coming in.
Speed of settlement can have a big impact on a retailer’s cash flow. Depending on which payment services provider you choose, you could access your funds the same day you earn them — or you could be waiting upwards of three business days. Choose a provider that’s slow to settle, and you may find yourself in the frustrating situation of needing a business loan to tide the business over until your funds are released. Yet with a loan comes interest, which takes more money away from the store.
Fast deposits are one way Zeller helps keep more money in your business. When payment is accepted via Zeller Terminal, for example, funds are deposited to the associated Zeller Transaction Account that same day. Or, funds can be swept to any other bank account and settled the next business day.
3. A low cost of acceptance
When it comes to choosing an EFTPOS payment terminal, one of the most costly (and common) mistakes retailers make is misunderstanding transaction fees. Often, these fees will vary based on the type of card a customer chooses to use — making it difficult for retailers to forecast and account for their processing costs.
As well as that, many merchant services providers tack on hidden fees and charges — such as terminal rental fees, account-keeping fees, and more. Over time, these costs add up significantly. To add further insult to injury, hefty cancellation fees often apply.
The retail industry is a highly competitive space, and retailers often run on slim profit margins. With Zeller, you pay one low rate for every transaction processed through Zeller Terminal. Each tapped, dipped or swiped payment costs just 1.4 percent, including American Express transactions, and you have the option to pass the surcharge onto your customers.
4. A positive payment experience
The importance of customer experience cannot be understated. Often, the last interaction a customer will have with your staff is at checkout. That is why it’s imperative for retailers to provide customers with a positive, frictionless payment experience.
What it means to provide a positive payments experience has changed over time. For example, the newest generation of shoppers — Gen Z — values speed and convenience. These shoppers are comfortable using smartphones and wearable tech to make purchases, but they expect the transaction to be fast. No one wants to wait an extra minute or two for connectivity to kick in these days.
A mobile EFTPOS terminal with multiple connectivity options, like Zeller Terminal, enables staff to accept payment from around the store — meaning fewer queues at the counter and a quicker, more convenient shopping experience for customers. Having the option to connect to the internet via Wi-Fi or mobile hotspot also safeguards your business against unforeseeable events, such as an internet outage or service interruption due to a storm or scheduled maintenance.
While it might not seem like the most exciting task when setting up a new retail store, choosing a payments provider is not a decision to be taken lightly. The decision will impact not only your cash flow, but also your customers’ payment experience.
Whether you’re opening a new store or simply unhappy with your current provider, taking the time to weigh up your options now will pay dividends for years to come. Learn more about Zeller here.