Lower Bank interchange fees to 'enhance' credit card earn rates

[PaulybGC]

Not personal Comoman - but aimed squarely at Xero this is bloody criminal - how does any business operator sleep nights shafting customers to that extent? I am truly staggered.

Technically not Xero's fault as Stripe is only one of many "ad on's" that the business chooses to manage payments through Xero.
Square is another popular one with a rate of 1.9% across the majors.
Paypal is another & with decent volume can be down around 1.5%

 

[lovetravellingoz]

Yes we use Xero. The built in credit card facility is from Stripe - they charge 2.7% across all cards. Obviously MC/Visa users get shafted.

They're going to have to reduce this post 1st July.

Would not the company that billed you have decided to levy the 2.7% ?

I have paid some suppliers through Xero with no surcharge and so natually paid on my Amex.




As to the %, my volumes are not high and so PayPal costs me about 2.6% for any credit card payment in..

 

[Cruiser Elite]

Technically not Xero's fault

Paint it anyway you like - blame whoever - 2.7% for Visa / MC is bordering on criminal IMHO. Simple cough like myself can get a .65 Merch Fee for both through my bank and never ever surcharged any customer - again again again IMHO A Merch fee to process CCs is a business expense and should be built into pricing. RB a bunch of tools for ever allowing it.

Point of Reference: On this very matter - currently RB permits 'Reasonable Recovery of Costs' for CC usage does it not? Can someone please point us to exact notation of this as it stands currently? Exact notation of what is permitted post July 1?

 

[PaulybGC]

Paint it anyway you like - blame whoever - 2.7% for Visa / MC is bordering on criminal IMHO. Simple cough like myself can get a .65 Merch Fee for both through my bank and never ever surcharged any customer - again again again IMHO A Merch fee to process CCs is a business expense and should be built into pricing. RB a bunch of tools for ever allowing it.

Point of Reference: On this very matter - currently RB permits 'Reasonable Recovery of Costs' for CC usage does it not? Can someone please point us to exact notation of this as it stands currently? Exact notation of what is permitted post July 1?

I don't disagree with you , i'm the same have never charged surcharge to a client and don't intend to. I use Xero & run all my payments through a manual terminal.
I think the charge is more of a service fee rather than a merch fee for the use of the online payment gateway and again in my opinion should be absorbed by the business. Will be interesting to see how it works next month, can they still oncharge a service fee??
I assume your .65 is not for the same type of service but a standard merchant terminal? even so a great rate.

 

[theblank]

Simple all round good bloke like myself can get a .65 Merch Fee for both through my bank and never ever surcharged any customer - again again again IMHO A Merch fee to process CCs is a business expense and should be built into pricing. RB a bunch of tools for ever allowing it.

can you really get 0.65% merchant fee without paying any monthly fee and setup cost?
I dont think so. That is why 2.5% charged by some non bank providers is attractive to busineses with a low credit card turnover who just pass the cost on to the wanker point chasers like myself, whereas most of their clients willl pay cash.

 

[trippin_the_rift]

can you really get 0.65% merchant fee without paying any monthly fee and setup cost?
I dont think so. That is why 2.5% charged by some non bank providers is attractive to busineses with a low credit card turnover who just pass the cost on to the wanker point chasers like myself, whereas most of their clients willl pay cash.

I've never had a merchant account over 1% and i have zero volume or existing relationships.

My understanding of why some biz charge more is the bank charges more based on the type of business they're engaged in based on fraud risks.

2.5% for any retail or online stores is nothing but blatant cash grabbing.

 

[ComeFlyWithMe]

I've never had a merchant account over 1% and i have zero volume or existing relationships.

My understanding of why some biz charge more is the bank charges more based on the type of business they're engaged in based on fraud risks.

2.5% for any retail or online stores is nothing but blatant cash grabbing.

The rate depends on the industry and risk profile.

Many merchants have 2.4 to 3% starting rates. Mine did so I didn't bother accepting cards. As it was B2B, EFT suited everyone just fine.

 

[Scr77]

I've never had a merchant account over 1% and i have zero volume or existing relationships......

Care to share with us or PM me with who you use? I'm in construction, have low CC volumes (under $5,000 per month) and can't do better than 2% + GST.

 

[Cruiser Elite]

Bendigo Bank

 

[albyd]

Suncorp does 0.75% for medicos MC/Visa (including debit excl. hicaps) and 25c for eftpos.

 

[SOPOOR]

Bendigo Bank

times may have changed but 5 years ago but Iwent to my local bendigo too and without a account, Iwas able to get 0.65% + gst for hospiliaty about 6k per week

 

[hossein_au]

Care to share with us or PM me with who you use? I'm in construction, have low CC volumes (under $5,000 per month) and can't do better than 2% + GST.

Exactly the same (construction). Also have another business in 'management consulting'. Would love to hear how I can get below, or even close to, 1%.

 

[Freq Flier 2013]

A medical client was offered this last week via anz bank.

 

[Freq Flier 2013]

Not sure about Amex. Will find out next week.

 

[Spongbob]

A medical client was offered this last week via anz bank.

View attachment 98791

I wonder what are the ANZ "standard", "premium" and "premium plus" cards are after 5 August? I cannot see anything ANZ offers that could be called "premium plus".
And what is the justification for the different rates of fees charged?

 

[Freq Flier 2013]

I did ask the bank for a blended rate - one flat rate across all cards but they do not offer it any more.

 

[SOPOOR]

I did ask the bank for a blended rate - one flat rate across all cards but they do not offer it any more.

Do the banks pay more for these premium cards or is just another cost they claim to gouge customers?

When I got mine facility in 2010. Every one was a flat fee however tyro had just started offering tiered rates. They were a little cheaper but the premium cards were pretty expensive

 

[Freq Flier 2013]

Higher points for customers with premium cards. But the merchant pays for it - as you can see in the offer from the anz.

 

[Freq Flier 2013]

It's getting harder to get a blended rate from banks as they encourage people to go for premium products

 

[hossein_au]

A medical client was offered this last week via anz bank.

View attachment 98791

Wow! I understand monthly terminal rental fee and minimum monthly merchant fee, but annual fee on top of that?? And, 'transaction service fee' on top of 'service fee'??? Wow! They charge you a service fee IN ADDITION TO charging you a fee for providing the service?? Excuse me while I pick up my jaw from the floor...