Eftpos promotes potential savings for Australian small business in COVID recovery

EFTPOS today launched an advertising campaign to promote a way that Australia’s small businesses may be able to reduce their costs as they rebuild after COVID-19.

The six week campaign will help inform merchants about how they can potentially reduce the fees they pay to accept ‘tap’ card transactions on dual-branded debit cards by routing them through eftpos as opposed to international payment companies.

Known as Least Cost or Merchant Choice Routing, the method can lead to significant savings of up to 40 percent (based on numbers provided in the RBA Bulletin March 2020) on transaction fees from debit cards – Australia’s most popular form of payment.

“Right now in Australia, nothing is more important for Australian business owners than protecting cash flow,” eftpos CEO Stephen Benton said. “There are many things outside their control such as labour costs and utility bills, but they may be able to reduce the cost of receiving payments by Least Cost Routing.

“With debit cards accounting for more than 70 percent of card transactions in Australia and more consumers moving away from cash after COVID-19, routing has the potential to deliver significant savings for many thousands of small and medium businesses across the country. In turn, these cost savings could also flow to customers in the form of lower prices or reduced surcharges.”

There are around 35 million dual-branded debit cards in Australia – featuring the eftpos logo on the back and an international scheme on the front.

The new eftpos campaign launches today and will run across outdoor, digital and social media, as well as radio and print publications. It’s the first significant advertising eftpos has done in three years.

Mr Benton said the new campaign was an expression of the company’s purpose – "to do good for Australia" – by offering the opportunity for reduced fees, specifically for small and medium businesses and their customers during this difficult time.

“The Reserve Bank has promoted Least Cost Routing for many years as a way of reducing costs for merchants, and has urged the industry to promote the service more widely,” Mr Benton said. He referred to an article on the RBA Head of Payments Policy on February 5, 2020, published in the Australian Financial Review.

“The message of this campaign is simple – contact your bank or acquirer to find out what savings you can make by routing through eftpos,” Mr Benton said.

About eftpos 

Eftpos is Australia’s debit card system, accounting more than 2 billion CHQ and SAV transactions in 2019 worth around $130 billion.

www.eftposaustralia.com.au 

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