Least Cost Routing for eCommerce
- A compelling business case – save up to 50% on your merchant service fee. Transition is invisible to your customers.
- Contracts and support provided directly by a Global Payment company.
- With optional 3D Secure to help manage chargebacks.
- Perfect for online retailers.
Advantages & Benefits
- Channel eCommerce sales away from Visa/MasterCard
- Use EFTPOS instead for Merchant Acquiring Fee savings
- Savings can be up to 50%
- The process is invisible to customers
- Customers can continue to use their usual Debit Card for eCommerce transactions
- Transactions are automatically routed via EFTPOS in the background
- This change is frictionless and can result in substantial savings
How It Works
The World of Android Terminals
Australia is about to see the rapid rollout of new Android Terminals, such as the Pax A920. These will be available from a variety of the Big 4 Banks and more specialist payments providers and can be game changing for savvy retailers and logistics providers.
- Host your POS on your terminals
- Run on-screen advertising to generate revenue
- Enable pop-up locations
- Get real time interaction with inventory, accounts and other components of your ERP
- Unique pricing models for better cost control
- Industrial level support
Least Cost Routing for Billers and Retailers
Re-direct your Visa / MasterCard transactions via EFTPOS for massive savings. If you are a biller or retailer with your customer’s card number on file, this is for you
- A compelling business case – save up to 50% on your merchant service fee
- Transition invisible to your customers
- Transition with confidence with management and transition support provided by globally listed payment companies
- A variety of tailored payment solutions to suit your needs
- Perfect for recurring biller – insurers, telcos, utility companies, subscription services and local governments, etc
Case Studies
Utility Company Seeks To Reduce Merchant Acquiring Costs
A Mid-range utility company with inward card payments of $500m p .a. Prides itself on simple, competitive pricing. They sought to reduce their Merchant Acquiring costs, but in order to do so with their brand promise, do so without surcharging their customers a payment fee.
We arranged a new Acquirer who can route Visa and Mastercard Debit Card transactions via EFTPOS for significant fee savings. The transition to the new Acquirer was smooth and invisible to their customers. The client saved .020% on a $500m for a bottom line benefit of ~$1M .p.a.
Online Retailer Seeks To Reduce Merchant Acquiring Costs
A high growth online retailer, who was turning over $600m p.a. was seeking cost savings and fraud prevention. Arrangements were put in place years ago and were expensive, prone to fraud and had a high number of declined transactions. Rapid growth had always seen reviewing payments as a lower priority.
Two solutions were presented to the client.
- To reduce fees, they moved Merchant Acquirers to one that can provide Least Cost Routing online
- To reduce Fraud and increase transaction approvals, we engaged them with an online a fraud management that drastically increased declined / abandoned transactions and took responsibility for chargebacks.
The fee savings alone were 0.5% for a saving of $3m p.a. Increased transaction approvals and eradication of chargebacks delivered a 1% increase in sales for extra revenue of ~$6m p.a.
Common Enquiries
Businesses incur costs when they accept a credit or debit card payment from a customer. Different cards incur different costs – cards that offer significant rewards to consumers can be substantially more expensive. Implementing a surcharge or a service fee on card payments allows businesses to recover the cost of accepting expensive card payments.
The new surcharging framework introduced by the Reserve Bank of Australia ensures that businesses have the right to surcharge in order to cover the cost of accepting card payments whilst ensuring that consumers are not excessively surcharged
The new RBA measures allow businesses to surcharge for merchant service fees and terminal rental, but prohibits profiteering.
- VISA, VISA Debit, VISA pre-paid
- MasterCard, MasterCard Debit,
- MasterCard pre-paid
- Express companion cards
You may choose to set the same surcharge/service fee rate for a number of different payment schemes, provided that the surcharge/service fee is no greater than the average cost of acceptance of the lowest card accepted. For example, if the surcharge for a credit card is 1.5% and for a debit is 0.5%, you can surcharge a flat maximum rate of 0.5%.
The ACCC explains payment surcharges here: https://www.accc.gov.au/system/files/1193_Payment%20surcharges_FA_web02.pdf
The Australian Competition and Consumer Commission (ACCC) has a broad range of investigation and enforcement powers to prevent excessive surcharging. Fines may apply. Visit the RBA Website for the latest information.
