Adrian Floate 10 January - 3 min read
Paying merchant fees might seem like the simple cost of doing business, but the recent surge in eCommerce means it is an area where businesses can save a significant amount of money.
One of the simplest things you can do for your business is conduct a health check on your merchant rates and negotiate a better deal.
Merchant fees are the transaction fees that the merchant bank account must pay whenever a customer uses a debit or credit card to make a purchase.
The fees associated with taking online transactions can be considerably higher than in-store purchases. With more Australian businesses incorporating online stores, they are copping increased charges.
For payments made online, typical transaction rates tend to jump and can be as high as 2 – 3 per cent per sale. This can represent a huge chunk out of business profits.
These high merchant fees on transactions can cost a business thousands of dollars each day.
If you are paying more than 2% in these transaction fees, you’re paying too much.
Types of merchant fees
When looking at potential payment solutions for your online site, understanding the fees is the first step to avoid paying too much.
Merchant fees include:
The key to saving money on merchant fees is to shop around. There has been a proliferation of fintech payment solution providers in Australia in recent years. Competition has driven merchant fees down as new players try to increase their market share.
Ways to save include:
While businesses can make considerable savings on their merchant fees, price should not be the only consideration.
As well as competitive rates, ensure your payments provider offers excellent customer service and supports extensive business integrations.
We offer one of the cheapest rates in Australia which means you get to keep more from every sale. We can conduct a free health check on your rates, so get in touch with us to see how much you can save.
E-invoicing has transformed how businesses send and receive invoices. It automates the exchange of invoice information directly between a supplier’s and a customer’s accounting software.
For businesses built in the cloud, pivoting, scaling and expanding to new countries can be achieved at a very low cost. These companies also implement some of the latest systems and processes in payments technology — think instant payments, secure payment networks and the ability for customers to choose from a range of options in how and when they pay.
Late payments aren’t new to Australian businesses. For many businesses, having almost $40,000 in outstanding invoices is the reality of operating, but it doesn’t have to be the case.
© 2021 Spenda. All rights reserved