Kiwi's are starting to use their credit cards more to spend, in 2018 it was recorded that credit overtook EFTPOS/debit transactions and in January 2019 it was reported that 54% of spending was via credit cards.
With the holiday season coming up, it might be a good time for your business to review whether you should start accepting credit transactions. We talk a bit about the costs below.
How much will it cost me?
EFTPOS and debit card transactions are free, whereas credit cards will have Merchant Service Fees (MSF). These fees usually range from 1-4% of the transactions, these fees are what your merchant bank charges you to accept these payment types. Speak with your merchant bank to know what your exact MSF.
When would be a good time to look at accepting credit?
It's important to ask yourself when it is right to start accepting credit transactions. You could perhaps ask your regular customers if they would like to be able to pay with credit card or via contactless payment methods. Perhaps you run a busy café or retail store and taking payments faster means there is will less of a wait for your customers.
Kiwi's have a tendency to purchase bigger ticket items with credit cards, with the average credit transaction being $64. This means if your customers are looking to spend more, they may want to pay with a credit card over an EFTPOS card.
Our surcharge solution can help you recoup the costs of acceptance.
If you are wanting to accept these payment types, but don't want to pay the Merchant Service Fee. Our terminals can offer you with the ability to surcharge your customers to recoup the costs. Read more about surcharging here.
Have a read of Paymark's January 2019 report on the face of payments in New Zealand if you would like more information to help you decide whether your business should start accepting credit card transactions.
Smartpay Holdings Ltd. published this content on 20 September 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 September 2019 21:41:08 UTC