Merchant services: What are the options?

If you are starting your own business, one key thing to consider is how you will take payments from customers. That’s where merchant services come in.

Cards have become the most frequently used payment method in Australia, surpassing cash. According to a survey by the Reserve Bank of Australia, credit and debit card payments make up just over 60% of the total number of consumer retail payments. So it’s perhaps more important than ever that businesses have the tools to accept card payments from their customers.

What are merchant services?

Merchant services refer to the software, hardware and services that are used by businesses to accept credit and debit card payments. Examples include standalone EFTPOS machines, EFTPOS machines that are integrated with a point of sale (POS) system and online payment systems including payment gateways. Merchant services can allow businesses to accept payments in-person, online or over the phone.

Depending on the provider, businesses may be able to receive same-day settlement of funds or it may take a few days for the funds to go into their account.

How much do merchant services cost?

The cost of merchant services will vary depending on the provider. Some merchant services providers may charge monthly plans, while other providers may charge per transaction or a combination of the two methods.

Some common fees you might encounter include:

• Merchant service fee: a fee charged for processing each transaction. This is typically a percentage-based fee based on the transaction amount. There may also be different fees for different card types.
• Establishment fee: a one-off fee that is charged to cover the cost of setting up your payment facility.
• Merchant terminal rental fee: an ongoing fee that is charged per EFTPOS terminal.
• Chargeback fees: a fee that is incurred if a customer disputes a transaction.

Who offers merchant services in Australia?

There are a range of different merchant services options for businesses in Australia, including payment terminals and eCommerce solutions from banks and specialised payment companies. Here are some of the most popular merchant services providers in Australia and a summary of the products on offer. This list is based on the majority of providers identified in our Merchant Services Customer Satisfaction Award, with providers are listed in alphabetical order:

ANZ

ANZ provides a range of merchant services including:

• EFTPOS machines, including standalone machines and machines integrated with your POS system
• Online payment systems, including ANZ Secure Gateway and ANZ eGate
• Other payment solutions such as BPAY® and direct debit
• Health solutions to process claims and receive card payments from patients

Bankwest

Bankwest offers businesses merchant services such as:

• EFTPOS terminals, including terminals integrated with your POS system
• Bankwest Simplify, a tool to help you build your own online store and take payments
• eCommerce solutions, including Bankwest Gateway and Internet Merchant Accounts to accept online payments
• Online and recurring payment solutions

Bendigo Bank

Bendigo Bank offers merchant services in partnership with payment companies Tyro and Eway. Services include:

• Tyro EFTPOS machines, including mobile, countertop and integrated EFTPOS machines
• eCommerce payment gateways powered by Tyro and powered by Eway
• Billing and recurring payment solutions, including BPAY and direct debit

Commonwealth Bank

CommBank offers a range of business payment options including:

• EFTPOS machines, including machines that can be integrated with your POS system
• eCommerce and online payment tools, including tools to build your online store and payment gateway CommWeb
• Recurring payments and billing solutions, including BPAY

Heritage Bank

Heritage Bank offers merchant facilities powered by Mint Payments. It currently offers:

• Mint EFTPOS machines, including mobile machines and machines that can be integrated with POS systems
• Mint online payment tools, including payment gateways

NAB

NAB’s merchant products and services include:

• NAB EFTPOS mobile machines, including integrated terminal options
• eCommerce and online solutions
• Billing and recurring payments solutions, including direct debit and BPAY

PayPal

PayPal offers payment solutions such as:

• PayPal Checkout, which allows you to accept debit and credit cards online or in an app and also includes PayPay’s buy now pay later option Pay in 4
• QR codes, which allow customers to pay by scanning a code using the PayPal app
• Virtual Terminal, which lets you accept credit and debit card payments by phone

Square

Square offers a range of merchant services including:

• EFTPOS payment options, including the Square Reader for tap and go payments, Square Stand, Square Terminal and Square Register
• Online payment services

St.George Bank

St.George offers the following payment solutions for businesses:

• EFTPOS terminals, including standalone and integrated terminals
• eCommerce solutions
• BPAY

Stripe

Stripe offers online payment processing tools such as:

• Stripe Checkout, which adapts to your customer’s device, location and more
• Stripe Elements, which allows you to design your own payments form

Suncorp

Suncorp’s merchant services currently include:

• EFTPOS machines, including mobile and integrated machines and EFTPOS options for healthcare
• Online store payment solutions
• BPAY

Tyro

Tyro currently offers the merchant services such as:

• EFTPOS machines, including countertop, mobile and integrated machines
• eCommerce payment solutions

Westpac

Westpac currently offers the following merchant services products:

• EFTPOS machines, including countertop and mobile terminals and standalone and integrated terminals
• eCommerce and recurring billing solutions, including PayWay
• Other online payment solutions, including BPAY

How can I choose a merchant services provider?

When comparing merchant services providers, you might like to consider factors such as:

• speed of services and transactions
• customer service
• device functionality
• online reporting tools
• fees and charges
• reliability

You can check out Canstar’s Most Satisfied Customers – Merchant Services Award. We surveyed hundreds of businesses and asked them to rate their satisfaction with their merchant services provider.

Find more financial solutions for your small business with Canstar:

Compare Small Business Solutions

Cover image source: StratfordProductions/Shutterstock.com