which cheapest merchant?

[SOPOOR]

was wondering if someone could help me out,

am in the process of setting up a cafe,

what would be the cheapest merchant facilities available,

obviously, I am not going to be using millions per week through it, nor do I have multiple shops,

so its for a small cafe,

if Im looking for a no frills, cheapest, im not brand loyal in anyway,

what would everyone recommend, and what sort of rates should i be expecting???

 

[MAX_1]

Sometimes if you become a member of an Association, deals are in place.
In my business , our Association has deals with St George Bank and Westpac.

Its not necessary to deal with your own back, but worth telling them about other deals and they should beat or match.

Here is an example from AFTA: ( found by using Google )

http://www.afta.com.au/Assets/279/1/WestpacEftposProcessing1.pdf

 

[Nutcase]

St George has the best priced merchant facilites in the market -

Youre under no obligation to go with the bank that has your broader banking relationship.

A MSF (Merchant Service Fee) of around 0.60% should be applicable.

 

[SOPOOR]

alrighty

thanks everyone,

I have heard many comments from people over the years about bendigo being customer friendly,

Im with CBA, but wouldn't expect them to be very competitive and since I don't have a loan or anything, I believe I will be treated as a walk in.

so I will aim for about 0.6%, hopefully I can get that sort of rate even with low turnover

wish me luck!

 

[cosi]

alrighty

so I will aim for about 0.6%, hopefully I can get that sort of rate even with low turnover

wish me luck!

Good luck in getting 0.60.

Our industry association, which would be very high value with lots of transactions has an agreement with westpac and a merchant fee of 0.708%

 

[thewinchester]

I would take a look at Tyro. They've been picking up a lot of business in the food service industry of late, they have rates that they'll negotiate downwards for you as volumes decrease, and they also have IP-capable terminals as a default option (use an ADSL connection to process instead of a phone line).

 

[SOPOOR]

well my first quote from the CBA, naturally not very good,

1.13% MSF

however, what got to me is the $30 chargeback fee

and .44%/0.39% they pay on refunds, insulting,

 

[notzac]

I would take a look at Tyro. They've been picking up a lot of business in the food service industry of late, they have rates that they'll negotiate downwards for you as volumes decrease, and they also have IP-capable terminals as a default option (use an ADSL connection to process instead of a phone line).

I've also heard good things about Tyro - I don't have any personal experience to go by, but I haven't heard anything bad about them either (which is rare when it comes to anything banking related)!

SOPOOR, do you intend on accepting AmEx?

 

[SOPOOR]

even though I have one, I absolutely hate Amex so if I could avoid it I would

however, the bad publicity all for the sake of 1%, for say transactions between $20-$80,

I would rather suck it up, naturally, if they ask me, which payment method I prefer, i will say, cash, then visa/mc then amex

 

[thewinchester]

Tyro's full fee structure is at:
Tyro - Secure IP EFTPOS Payment Systems

In short, fees on EFTPOS and Visa/MC Debit cards are fixed flat fees (starting at 0.25 and 0.50c respectively depending on annual volume).

Additionally, their terminals are essentially offered on a Rent to own structure. Terminals are owned outright by the merchant after 36mths with no further monthly fees.

The good thing about Tyro is that their fee structure is totally open, and not subject to the whims of business bankers giving preferential treatment.

Additionally, their mobile solution (via wifi/GPRS) is cheap compared to anything else on the market, plus they offer dynamic currency conversion which may be handy if in a tourism precinct with high international traffic. Their system is also designed to pass back to the merchant margin profits on these transactions.

 

[SOPOOR]

thanks everyone, im just waiting on the response back from bendigo,

will also BOQ as well,

I did speak to someone at Tyro,

interesting + confusing pricing structure,

im not too sure if Im too keen on the fact that you get charged almost 1.4% for platinum MC/Visas,

I was a bit surprised that the system could actually distinuigsh them,

and yeah rates were about 0.9% which is good, but I guess if most of the customers were platinum cards, thats 1.4% which is up in to the amex price range,

so I will keep on looking around at this stage

 

[one9]

Also be careful as many banks will sign you up to a 3 year contract and then will increase your rates after a year.

Both NAB & Bankwest have pulled this trick on me.

I am considering joining an association so that the merchant rate stays the same.

Here are a few associations that I found whilst doing a quick google search:
* http://www.nationalfootwear.webcentral.com.au/CBA_3.html
* The Retailers Association | Membership
* http://australianhotels.asn.au/documents/corporatediscountsbookletDecember2009_000.pdf

 

[SOPOOR]

welll interesting,

after obtaining quotes, i found at first glance, bendigo bank to be the probably the best,

$19 per month rental
0.89% fees,

it doesn't mention anything about amex/diners, but Im assuming it also doens;'t discriminate between gold/standard/plat cards

 

[kdser]

welll interesting,

after obtaining quotes, i found at first glance, bendigo bank to be the probably the best,

$19 per month rental
0.89% fees,

it doesn't mention anything about amex/diners, but Im assuming it also doens;'t discriminate between gold/standard/plat cards

I am looking for an Online Mail Order/Telephone Order (MOTO) merchant facility. Will the rate be comparable to say 0.89%?

 

[edman]

welll interesting,

after obtaining quotes, i found at first glance, bendigo bank to be the probably the best,

$19 per month rental
0.89% fees,

it doesn't mention anything about amex/diners, but Im assuming it also doens;'t discriminate between gold/standard/plat cards

Mate I presume by now you have found someone to go with, can you share?

My restaurant is through CBA, it does distinguish between standard/platinum cards but all at the same rate - .67%. Was arranged through the Campbells Cash and Carry group.