How often do you tap your card or phone to pay versus paying with cash? As society is transitioning to digital wallets, it is evident that there is a rise in cashless payments. Data from the Reserve Bank of Australia (RBA) shows that cash only accounted for 16% of in-person payments in 2022, highlighting just how prominent card payments are – and why it’s essential for businesses in the hospitality industry to accept card payments. With this, a growing fee emerges for business owners: EFTPOS fees. These fees can become quite significant and cut into a business’s profits.

Fees is a trigger word these days, especially for small to medium-sized businesses. Businesses are struggling with record-high costs while trying to remain competitive in response to rising inflation and interest rates. Labour costs, goods and overheads like electricity bills and petrol are all going up. Conversely, EFTPOS fees are often higher when your business does well, as they are typically percentage-based, based on your monthly turnover. That means that a particularly good month of sales could equal a larger bill in EFTPOS fees.

If you and your business are looking for cost-cutting measures, you’re not alone. But what are some of the best ways to tackle this? For one, try negotiating with your suppliers. This can be a good pattern to approach regularly, calling up service providers and seeing if there are any deals you can tap into or the chance to renegotiate your rates. If one of your regular providers has changed their fee structure recently, now might be the time to explore your options and ensure you are still getting the best deal for your business.

Also, don’t be afraid to shop around and compare rates to make sure your business is getting the best deal. Smartpay offers hospitality merchants a Zero Cost™ EFTPOS solution that allows you to automatically pass on a small surcharge to cover EFTPOS fees and help you save on your EFTPOS bill – reducing costs and improving the cash flow in the process.

This transition to cashless payments – and the rising costs with it – is felt across the food services and hospitality industry. Cati, Bar Manager at Fitzroy’s Si Senorita Bar, made the switch to Smartpay after realising that as their bar grew, so did their merchant fees. She said, “Our merchant fees kept going up as we grew and then came Covid, which changed the landscape significantly. Everyone started paying by card or mobile wallet, and hardly anyone used cash. Again, that just pushed up those merchant fees.”

She continued, “We have five part-time staff who just punch in the amount, and the surcharge is calculated automatically. Totally streamlined and easy. Our staff can focus on our customers.” And this hasn’t impacted their customer satisfaction either: “We have not had any issues from customers. Surcharging is very common now,” Cati added. With Smartpay Zero Cost™ EFTPOS, she’s now saving about $24,000 a year in transaction fees.

Whatever solution is right for your business, the rise of the cashless society is here to stay. Exploring your options could help your business save up to thousands a year.

This article was written by Smartpay Australia. Smartpay is a leading provider of EFTPOS solutions and can also help you reduce your POS costs. Get in touch to learn more about our POS and payments deal that are lightyears ahead via our website.