Sorry for so many questions, mods you can delete it if i've asked too many questions I'm just really curious about a few things and they are bugging me.
But yeah, what is the charge to businesses if I were to pay by card? I know that paypal charge from 1.1% + 30c to 2.9% + 30c but I was wondering what the general charge is for non paypal eftpos machines?
See I thought it would be way more than that. Are there any other charges? Like monthly fees? Because anything below 2% I don't understand why all businesses don't accept eftpos.
Oh… that.
It's called Tax Evasion… most 'CASH ONLY' business only declare a portion of their sales so as to not pay GST and company tax on profits.
I had high hopes that some businesses that only accepted cash were genuine lol *sadface~
2 reasons: 1 is tax purpose, another could be the businesses need cash. Businesses such as restaurants they need cash and they dont want to get destroyed by the chargeback or stolen cards as they have to pay cash or shorter credit terms from their suppliers.
that is why farmers wants money fast and quick. otherwise they will just sign contract with coles or woolies and agree to their rebate system…earn way less but can be sure they get the money
Restaurant supplier terms are either 7, 14 or 30 days. Eftpos/CC settles within 48hrs, I fail to see the issue? It's just tax avoidance, plain and simple.
I am sure there are many small businesses avoiding tax on cash payments, but a large number also are reluctant to pay any percentage to a bank, and wish to avoid the costs of eftpos terminal charges and cc fraud.
Even if there was zero tax avoidance, cash would be preferable for many small businesses.
To you, 1% on a $20 transaction is a pittance, but 1% on $100000 of sales in a month is $1000. If they have a 20% profit margin, their business just lost 5% of their profit compared to taking cash only.
I totally understand that but there are a lot of businesses that I won't go to simply because they don't accept card. I'd be happy to pay a surcharge to cover the costs of the transaction but thats generally not an option.
Said business raises their prices by 1% to cover the 'cost' of card transactions.
Problemo solved.
As i said, it is just TAX EVASION, pure, simple and undeniable.
Agreed. The world has moved on in the last 5 years so that many consumers won't use cash - see the thread about what is in your wallet, where more than half carry no cash.
Hold outs in my area were the fruit market, who got eftpos last year, and one of the doctors surgeries, who take cash or cheque(!)
yea except there are quite a few people with fraud cards. I personally heard at least 3 restaurants said people like to order high priced tag items (abalone, lobsters) and pay by card and the restaurants get dispute the next days and businesses get burnt. It is hardly always the banks that pay the bills where cases of dispute happened. Businesses themselves also get burnt.
edit: some businesses (restaurants) dont work on credit terms, they buy their materials like meat,vegie, seafood with cash for extra margins…Not to mention they operate in cash too, pay employees in cash in hand
I'd like to see a surcharge on paying cash.
Cash = Requires balancing til, banking, has a safety concern
Other than tax and any charges by Visa/Mastercard, cash is inferior to card.
A small business using a big bank is likely paying 1-2% on Visa/Mastercard plus a monthly account/equipment fee. Amex doesn't have a monthly, but charges a higher percent, say 2.5%.
Here is the full fees if you use MYOB's gateway services:
http://myob.com.au/products/small-business/point-of-sale/myo…
Note: it excludes the Amex merchant fee but includes a 0.1% surcharge.
yea Amex charges 3%, and Visa/Master is 1%. that is why some businesses have surcharge for Amex or Diner card.
Edit: Eftpos is fixed 15-20c doesnt matter what amount. Which is why it is preferred by all ppl
Does anyone know the deal with pay wave/tap n go? Because I'm pretty sure the bank makes money off those purchases. And if ING can afford to give a 5% cash back then 2%.. they must be making quite a bit off of it.
They must have some corporate deal between themselves I would say
ing must have deals with them. paywave/tap n go are treated as visa/master even if it is a debit card, so banks will earn more if customers use paywave/tap n go instead of eftpos (saving and cheque)
Yes. The rates varies for credit cards but betweeen 1-3%.(usually higher for Amex)
This is part of your assignment question right? = )
Not at all, just curious so I know how much I'm costing businesses by filling up my motorbike with $12 worth of fuel then paying my card.
Its about 1%, or lower if you are a Woolies or Coles. Queensland Transport charges a 0.4% surcharge, which is probably on a cost recovery basis.