The future of electonic payments 3
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Transcript of The future of electonic payments 3
The Future of Electronic Payments in AUSTRALIAAnd What Every Business Owner Needs to Know
Wendy Newbold
“We help businesses to Save Money by Reducing their Merchant Services
Fees, in most cases down to Zero”
CASH IS ABOUT TO DISSAPEAR
THEWAYYOURCUSTOMERSPAYYOUIS
CHANGINGFOREVER
AND THE
SCARY THING
is…
that it’s
creeping up
rapidly
And most of us are blissfully unaware
~9000 BC
~600 BC
~1730
1930
nations abandoned the gold standard
1981
late 2000s
miniHISTORY
ofCURENCY
THE FUTUREElectronic Payments Near Frequency Communication Digital Wallet
Cash is on the Decline
73%Cash
2005 2013 2018
59%Cash
43%Cash
2021
??%Cash
THE GOOD NEWS
THE BAD NEWS
and the
THE GOOD NEWS and the
THE GOOD NEWS
THE BAD NEWS
Text here
THE BAD NEWS
Text here
THE BAD NEWS
Text here
THE BAD NEWS
Retailer(Merchant)
Merchant’s Bank
(Acquiring Bank)
Customer’s Bank
(Issuing Bank)
Merchant Service ChargeOr Credit Card Fee
• Guaranteed payment• Card reader technology• Customer Service• Rate negotiated between
merchant and their bank
Interchange Fee
• Shares out the costs• Invest in new technologies• Protect the system• Covers points systems• 220 categories of
interchange fees
Understand The Process & Fees
THE GOOD NEWS
THE GOOD NEWS
But…Merchant’s are not allowed to profit from Surcharge
CAUTION
Merchant’s do not have the tools to correctly charge surcharge….but we do
CAUTION
CREDIT CARD INTERCHANGE CATEGORY UNIT RATE BANK FEE
TOTAL COMBINED RATE
VISA DOM ELECTRIC CONSUMER 0.09% 0.80% 0.89%VISA DOM DR STANDARD 0.29% 0.80% 1.09%VISA DOM CR ELECTRONIC 0.33% 0.80% 1.13%VISA DOM CR STANDARD 0.33% 0.80% 1.13%MC DOM CR ELECTRONIC 0.33% 0.80% 1.13%MC CR STANDARD 0.33% 0.80% 1.13%VISA DOM DR BUSINESS 0.94% 0.80% 1.74%MC DOM COMMERICAL 1.00% 0.80% 1.80%MC DOM DR PREMIUM 1.00% 0.80% 1.80%VISA DOM STANDARD PLATINUM 1.02% 0.80% 1.82%MC CR PREMIUM 1.04% 0.80% 1.84%VISA DOM CR BUSINESS 1.07% 0.80% 1.87%VISA DOM CR BUSINESS 1.07% 0.80% 1.87%MC DOM CR COMMERICAL 1.10% 0.80% 1.90%VISA DOM CR CORPORATE 1.32% 0.80% 2.12%VISA DOM CR CORPORATE 1.32% 0.80% 2.12%VISA DOM CR PURCHASE STANDARD 1.32% 0.80% 2.12%MC DOM SUPER PREMIUM 1.75% 0.80% 2.55%VISA INTERNATIONAL 1.88% 0.80% 2.68%MC INTERNATIONAL 2.15% 0.80% 2.95%
THE GOOD NEWS
and the
YOU CAN NOW CORRECTLY APPLYCustomer Surcharge
1. The ProductCustomer Surcharge
SIMPLE & FASTStep 1: Press Start button & select the customer’s preferred option of Eftpos or Credit
Example 1.98%
1. EFTPOS 50c2. CREDIT 1.98%3. DINERS/AMEX 2.99%
1. The Product
SIMPLE & FASTStep 2: Select the customer’s preferred option of Eftpos or Credit
Example 1.98%
1. EFTPOS 50c2. CREDIT 1.98%3. DINERS/AMEX 2.99%
Customer Surcharge
1. The Product
SIMPLE & FASTStep 2: Select the customer’s preferred option of Eftpos or Credit
Example 1.98%
2.CREDIT 1.98%
Customer Surcharge
SIMPLE & FAST
Purchase $100.00Surcharge $ 1.98Total $101.98
Example 1.98%1. The Product
Step 3: Key in the amount of the sale, press enter
The terminal automatically calculates the surcharge.
Now, simply collect payment as normal
Customer Surcharge
Purchase $100.00Surcharge $ 1.98Total $101.98
Full Amount goes into the Merchant’s
account
Covers all fees
1. The ProductCustomer Surcharge
1. The Product
Type Default Rate
Final Rate
MasterCard & Visa Credit
1.98% Set by Eftpos HQ after Merchant Statement Review
MasterCard & Visa Debit
1.98% Set by Eftpos HQ after Merchant Statement Review
Debit Eftpos / Savings / Cheque
50c or 1.98%
Set by Eftpos HQ after Merchant Statement Review
Amex / Diners / China Union Pay
2.99% Final Rate
Please note: Photograph of most recent Merchant Statement must be submitted for review to consider any rates other than the default rate.For new account with no trading history, rate reviews after 6 months may be required.
Customer Surcharge
Customer Surcharge Fair and appropriate approach
Without Surcharge,all prices need to rise Greater than the cost of Bank Fees to maintain target Net Profit %
With Surcharge, the cost to the customer only needs to increase by the bank fee/surcharge rate
2. THE SOLUTION & PRODUCT
Merchant’s do not have the tools to correctly charge surcharge….but we do
Want to See How Much You Can Save?
MERCHANT SUMMARY
Wendy
Contact Me for a Free Eftpos Health Check
[email protected] 648 769www.zerobankfeeseftposaus.com.au
2. THE SOLUTION & PRODUCT
Merchant’s do not have the tools to correctly charge surcharge….but we do
2. THE SOLUTION & PRODUCT
1. The Problem
Uhmmm…
This adds up to a big problem over 12 months
1. The Problem
Uhmmm…
This adds up to a big problem over 12 monthsApproximately what Net Profit %
would businesses of this size in your industry be looking to make?
Approximately how much you will save, per year, now that you have begun using surcharge.
If you didn’t apply surcharge, how much additional revenue would you need to make to earn that amount of Net Profit?
10%
$10,000
$100,000Does that sound about right?How do you feel about that?
1. The Problem
Uhmmm…
This adds up to a big problem over 12 monthsApprox. Industry Net Profit %
Your approx. saving per year with surcharge
Additional Revenue required without Surcharge
8%
$10,000
$125,000
(1/NP%)*Surcharge Saving = Revenue Required
IMPACT CALCULATOR