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How your business can reduce credit card processing fees

Spenda
29 July - 8 min read

How to save money on in-store payment fees

No business owner or employee enjoys telling customers their preferred payment method is not accepted in store. Or even worse, that a surcharge will be added.

Right now is a perfect time to expand your accepted payment types and to understand transaction fees better. After all, these could be the factor behind a customer buying from your store or walking out.

Modern Point Of Sale and Payment software supporting more payment options with fast and seamless transactions can help avoid these headaches.

Why is this important? Australia is now the fourth-highest user of in-store card payments globally. Exploring the technology that will enable your business to handle any transaction means a happy customer and potentially more sales.

SpendaPOS accept more transaction methods and charge you less to process customer purchases in-store.

How Spenda can save you money on in-store transaction fees

Spenda can save you money

Most POS and integrated payment systems in Australia will charge upwards of 2.5% per transaction. If you’re paying more than 2% for these, you’re losing too much money on in-store purchases.

With Spenda, our integrated payment fees start from 1.5% per transaction, with 2% fees for international cards and only 30c charges for card purchases.

Having a mix of payment options for your business coupled with an elite Point Of Sale and integrated payment system makes transactions fast, shortens checkout queues, has a lower impact on your gross profits and helps extend your cash flow to its full potential.

Try SpendaPOS on a 30-day FREE trial now. Download to your iPad from the AppStore by searching ‘Spenda’ or find out more here.

Why modern POS and Payments systems are needed

A modern point of sale system can speed up transactions and lower cost

Why does your business need an elite POS system in 2020? Because as technology evolves, cash payments and registers are rapidly diminishing as shoppers demand more diverse and innovative payment options.

It’s why the market value for POS systems will top almost $100 billion worldwide by the end of 2022. That’s on the back of a compound annual growth rate of nearly 14%.

Innovation used to be debit and credit cards. Evolution is now pay-and-wave processes, mobile payments, electronic apps, buy now pay later services and even crypto-currencies across bricks and mortar stores.

More than 80% of shoppers now also use smartphones, tablets or some kind of digital equipment purchasing in stores. It’s seen a decline of more than 20% in cash payments over the last 10 years in Australia and an increase of more than 20% in card payments.
Since the COVID-19 pandemic where most businesses are now refusing to accept cash payments for hygiene purposes, digital and contactless payments have surged even higher.

As a result, the demand for elite integrated POS systems that can handle more digital payments in-store is rising.

While having modern POS and integrated payment systems means you’re prepared to accept more payment methods and satisfy your customers, understanding the fees associated with each provides an insight into how your cash flow is affected by each purchase in-store.

The breakdown of in-store payment fees

Below is a list of the some common payment types in-store and the fees, pros and cons associated with each.

Visa Fees: Between 1.25% – 2.65% of the transaction value.

Pros: One of the most widely accepted and used payment types. It is also contactless, meaning faster processing of customers at the POS and improved hygienic safety during COVID-19.

Cons: Business owners will actually pay more with tap-and-go (around 0.55%, compared to 0.15% on EFTPOS) which is something to consider in case you want to pass that cost on to your customers.

Save of credit processing fees

EFTPOS Fees: Approximately 1.25% – 2.00% of transaction value.

Pros: Millions of Australian’s use EFTPOS daily and most enabled with tap-and-go functionalities for purchases under $100.

Cons: Minimal, although it’s not as ubiquitous as Mastercard or Visa.


Mastercard Fees: Usually between 1.25% – 2.65% of the transaction value.

Pros: Credit or debit cards issued by Mastercard are commonly used, therefore widely available and accepted across Australia. Contactless payment methods are available and also compatible with Apple, Samsung or Google Pay digital payment methods.

Cons: When customers pay using tap-and-go (which is becoming more prevalent given COVID-19), merchants will pay more on fees at around 0.55%, compared to EFTPOS rates of 0.15%.


Diners Club Fees1.25% – 2.65% of the transaction value but usually sits around 1.75%.

Pros: Customers using Diners Club cards tend to spend more and businesses often put their expenses on these corporate cards.

Cons: Not as commonly used as most other payment cards in Australia.


Union Pay Fees1.25% – 2.65% of the transaction value but usually sits around 1.75%.

Pros: Many tourists (including most of the 1.2 million Chinese visitors to Australia each year) choose to use UnionPay and spend around $8,000 on average per visit. This can be a great source of purchases for businesses with international tourists.

Cons: Not all business facilities in Australia are set up to accept UnionPay and it can induce more costs on some merchant plans.


American Express Fees: Approximately 1.25% – 2.65% of the transaction value.

Pros: Customers using American Express (Amex) tend to spend more in-store to earn valuable membership rewards points, meaning your business has an opportunity to build loyalty with these cardholders.

Cons: The cost of handling Amex transactions is more than other credit and debit cards. Many Australian businesses also refuse to take Amex or add a surcharge on top of the purchase price.


Apple Pay Fees1.25% – 2.00% of the transaction value.

Pros: Our phones are an extension of ourselves and more customers in-store demand the convenience of using their digital wallet for purchases. Payments are fast, contactless and accepted without entering card numbers.

Cons: Not many, although can incur slightly higher costs.

Spenda POS works with the latest in transaction technology

Samsung Pay Fees1.25% – 2.00% of the transaction value.

Pros: Similar to Apple Pay, is very convenient and fast. Credit and debit cards can easily be stored on their Android device and be used for tap-and-go purchases. Many businesses now support these payments.

Cons: Similar to Apple Pay in that it can have slightly higher costs.


BPAY Fees$0.65 to $0.70 per transaction depending on your bank. Most businesses will absorb this cost for customers and offer alternative payment methods that remove these fees.

Pros: One of Australia’s favorite ways to pay bills. Has a low fixed cost and is relatively quick and easy. Has been useful for businesses that issue frequent bills.

Cons: Has experienced technical and security issues in the past and can take 1-2 business days for the payment to arrive. Has been used to issue invoices to clients but can lead to late payments because of the delay.


PayPal Fees1.1% – 2.6% plus a fixed fee of $0.30 per transaction in Australia. For purchases in foreign currencies this can rise up to 3.6%.

Pros: Widely known and used payment gateway. Customers can easily draw funds from their linked bank accounts, credit and debit cards.

Cons: Can be pricey for merchants to accept. The platform has also been susceptible to a range of chargeback scams. Introduces an extra step at the checkout stage. Customers also need to remember their PayPal passwords for purchases which can become an inconvenience.


Reward Points Fees: None.

Pros: Australians can be completely unaware they may be sitting on thousands of rewards points. Giving them the option to pay with this unique currency could give you an advantage over your business competitors.

Cons: Has limited access, thus making it a very niche payment option. It is also not well understood and these points can also expire if not utilised within certain time frames.

Save move with Spenda POS

Cash Fees: No fees at the point of sale, although there may be deposit fees of between $0.60 and $2.50 when you deposit this at your bank.

Pros: Simple, effective and fast. Still remains the only good old-school backup for when digital systems fail.

Cons: Given the fear of germs and viruses spreading in a post-COVID world with high-contact items, cash usage is plummeting and many businesses now refuse to even accept it as a payment method. It’s also easy to steal, can be counterfeit and people tend to carry smaller amounts of it because of the risk associated with carrying large wads around. Employees doing mathematical equations for your change isn’t always 100% accurate either.

Need to expand your payment capabilities? Spenda accepts various payments including Visa, Mastercard, Amex, UnionPay, Diners Club and more and can integrate into your POS, EFTPOS terminal and financial systems instantly.

Please contact Spenda to find out more.

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