Merchant Services Options For Small Business

What merchant services are available for small businesses in Australia?

What is merchant services?

Merchant services refer to the payment terminal and/or software used by the business to accept credit card and EFTPOS or debit card payments. The system then settles the payments into the business account at the financial institution that issued the payment terminal or software; this typically happens on the same day (same day settlement) or overnight. Many payment terminals have a limit on the number or monetary amount of transactions they will process per month.

There are a bunch of different options out there for businesses to receive payments, with payment terminals and eCommerce solutions available from big banks, customer-owned institutions, and even independent software developers.

Different fees and charges apply to each payment option, so it’s worth shopping around. Common fees are credit card processing fees, debit card processing fees, and a monthly or once-off fee to purchase or hire a card reader or payment terminal.

In this article, we analyse the merchant services options on offer from each of the institutions we research and rate for our Bank of the Year – Small Business Award, plus a few other alternative methods for receiving business payments.

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You should also be sure to connect your merchant services to the right small business account, so that you’re not paying too much to process your everyday ingoings and outgoings:

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Canstar is an information provider and in giving you product information Canstar is not making any suggestion or recommendation about a particular product. If you decided to apply for a product you will deal directly with a financial institution, and not with Canstar. Rates, fees, and other product information should be confirmed with the relevant financial institution. For more information, read our detailed disclosure, important notes and additional information.

ANZ

ANZ’s merchant services include:

  • EFTPOS payment terminals and mobile phone payment terminals for payments made in-store or on the go
  • Online internet payment solutions for eCommerce (ANZ Payment Gateway)
  • Medicare EasyClaim rebate processing for health industry professionals
  • HealthPoint health fund rebate processing for health industry professionals

To be more specific, ANZ’s EFTPOS terminals include the following devices:

  • ANZ FastPay Next Generation is the latest iteration of a small card reader that inserts into an Apple or Android smartphone’s audio jack, to receive contactless payments or chip insert payments. App sends receipts by email and SMS. A corresponding online desktop portal allows the merchant to resend customer receipts, view transaction history in detail, and export transaction reports to Microsoft Excel or .CSV files.
  • ANZ POS Turbo 2 is an EFTPOS terminal that processes contactless payments, as well as the ability to swipe or insert a chip card. Multiple communications methods (Dial Up, GPRS or ANZ IP) provide a back-up in case of primary communication failure. Optional features include adding a tip (tipping).
  • ANZ POS Mobile 2 is a compact, portable payment terminal that connects through 3G to receive contactless transactions, or you can insert a chip card.

It’s also worth noting that in 2016, ANZ’s merchant services won the Canstar Blue Most Satisfied Customers Award for customer satisfaction in small business merchant services.

Source: ANZ Australia

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Bankwest

Bankwest offers four merchant services options:

  • EFTPOS Mobile is a portable payment terminal
  • EFTPOS Integrated is a larger payment terminal that links directly to your point of sale system to process transactions faster
  • bpoint is an online payment solution that receives payments by EFT transfer, debit cards, and credit cards
  • BPAY Biller payments system

Source: Bankwest

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Bendigo Bank

Bendigo Bank’s merchant services include options for face-to-face EFTPOS payments and out-of-sight payments such as BPAY, online website payment gateway, mail orders and telephone orders, and batch processing.

Bendigo’s options for receiving EFTPOS payments accept all credit and debit cards from Visa, MasterCard, American Express, Diners Club, and JCB:

  • redy is a compact, tablet style, mobile payment terminal that links to an app on Apple or Android smartphones. Customers with the redy app earn Creds points that can be redeemed for rewards or donations to the charities they care about. The redy mission is to build social and economic prosperity by connecting consumers and business with the communities and causes that matter to them.
  • GoPOS mobile payment terminal allows contactless payments, as well as the ability to swipe or insert a chip card. Runs on Optus or Telstra GPRS network, and has an in-built thermal receipt printer.
  • GoPOS Lite is a more compact payment terminal that pairs to a free app on a smartphone. Suits businesses that are on the go or need a portable payment terminal (e.g. to take to tables in a restaurant).
  • Verifone EFTPOS is a large payment terminal featuring an in-built thermal receipt printer.
  • Integrated POS allows your EFTPOS payment terminal to be integrated with desktop Point of Sale (POS) software via IP or ADSL.

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Commonwealth Bank – Pi: Albert, Emmy, Leo

CommBank offers merchant services that can be used with different operating systems, whether your business payments happen online, in-store, or on the go. They offer an eCommerce online payment gateway, BPAY, direct debit, Lockbox and eLockbox for EFT transfers, and bpoint for online or telephone payments.

The three EFTPOS payment terminals available from CommBank at the time of writing are:

  • Albert is a tablet device that connects through 3G or Wi-Fi to receive contactless EFTPOS debit and credit payments. Albert accepts MasterCard, Visa, American Express, and Union Pay cards.
  • Emmy is a compact and portable payment terminal that uses Bluetooth to pair with your Apple or Android smartphone or tablet and receives contactless payments through the CommBank Small Business app. Perfect for market stall vendors.
  • Leo is a larger payment terminal that allows customers to make payment with a tap, swipe, chip insert, or PIN. It is compatible with Apple and Android smartphones and tablets, and you can also use Pi to build your own custom apps to process payments the way you like.

Source: Commonwealth Bank

These merchant services run on their innovative, open software platform called Pi, which launched in 2012 and won CANSTAR’s Innovation Excellence Award in 2013. Pi allows businesses to create and upload apps, as well as downloading CommBank apps and other apps from the AppBank app store.

Read more about our other annual Innovation Excellence Award Winners.

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Heritage Bank

Heritage Bank offers access to “support services” rather than merchant services, but the range is the same:

  • mPOS mobile payment terminal from Mint Payments
  • Minternet online payment gateway from Mint Payments
  • EFTPOS merchant facilities available by contacting Heritage Bank
  • BPAY Biller
  • MYOB Banklink for small business bookkeeping

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Hume Bank

Hume Bank’s merchant services include:

  • EFTPOS terminals all enable contactless tap-and-go payments
  • EFTPOS Mobile Terminal with built-in printer and touchscreen
  • EFTPOS Countertop Terminal in more compact form, with touchscreen

Cards accepted as payment methods are Visa, MasterCard, American Express, JCB, Diners Club, and UnionPay International.

Source: Hume Bank

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NAB

NAB’s merchant payment services include the following:

  • NAB EFTPOS Mobile is a portable payment terminal that connects to an app on Apple or Android smartphones. Customers can tap, swipe, or insert a chip card
  • NAB EFTPOS Countertop is designed to stay at the counter with a fixed register terminal. Customers can tap, swipe, or insert a chip card
  • NAB EFTPOS Integrated is an integrated payment terminal that connects to a point of sale system. Customers can tap, swipe, or insert a chip card
  • eCommerce online payments system
  • BPAY, direct debit, and NAB RentCard payments system

Cards accepted as payment methods are Visa, MasterCard, American Express, Diners Club, JCB, UnionPay, and EFTPOS.

Source: nab

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PayPal

PayPal has merchant services for almost every way you can imagine getting paid:

  • PayPal Here is a compact, portable payments terminal connected to a mobile app that uses data or Wi-Fi to process payments to a PayPal account, so you can take payment in person on the go or in-store. The card reader is enabled for customers to tap, swipe, or insert a card.
  • Online website payments are made using “Check Out with PayPal” buttons that you put on your website checkout. Options include Website Payments Standard, Express Checkout, Website Payments Pro-Hosted Solution, or Payflow.
  • With the Virtual Terminal, your computer or tablet device becomes the EFTPOS terminal so that you can accept phone, fax, or mail orders online.
  • Set up your store on eBay with PayPal.
  • Recurring billing services can be set up with Payflow.

110,000 businesses in Australia use PayPal to receive payments from 6 million Australian buyers and 173 million buyers around the world.

Source: PayPal

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St.George Bank

Payment solutions from St.George Bank include:

  • Mobile PayWay is St.George’s most popular option according to their website. This compact, portable payment terminal connects to a smartphone or tablet device to receive contactless tap, swipe, or chip insert payments.
  • EFTPOS 1 Machine is a stand-alone, cordless countertop payment terminal that connects over 3G with back-up communication options. It allows contactless tap, swipe, or chip insert payments.
  • EFTPOS 1i is an integrated payment terminal and desktop point of sale system.
  • eCommerce solutions: Hosted Payment Page monitored via Merchant Administration Console (MAC) online banking portal, specialised solutions, or third party provider solutions.

Customised solutions for more complex business needs can be accessed by contacting St.George Bank directly.

Source: St.George Banking

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Stripe

Stripe is a relatively new addition to the Australian market in terms of payments infrastructure. It offers software solutions built for developers, so that you can customise the apps for the payments you receive:

  • Online payments integrated into your own website’s checkout, so your customer doesn’t have to leave your website to make payment
  • Mobile payments app

Stripe can be connected to a PayPal account, and it can be linked to Xero Accounting Software to make bookkeeping and keeping track of transactions easier.

The 100,000+ businesses that currently use Stripe services include Facebook, Twitter, Pinterest, Fitbit, and Adidas.

Source: Stripe

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Suncorp Bank

Suncorp’s merchant services include:

  • Counter-top EFTPOS payment terminals processes payments via dial-up, broadband, or GPRS
  • Mobile EFTPOS terminal is a portable, cordless payment terminal that process payments via an Optus or Telstra GPRS connection
  • Integrated POS is an EFTPOS terminal that integrates with your point of sale system
  • Automated stock control functionality helps keep your inventory from running low
  • Suncorp Bank Shopping Cart online store payments system can be integrated into your website or IVR system
  • Mail and telephone order payments (MOTO) allows fax, phone, or mail orders to be processed
  • Medicare EasyClaim rebate processing for health industry professionals
  • HealthPoint health fund rebate processing for health industry professionals

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Tyro

Tyro is a bank that provides Australian SMEs with products and services to improve the day-to-day running of their businesses. Tyro has:

  • A Smart EFTPOS system with 3G backup and dual live data centres that processes transactions in less than two seconds
  • A Smart Account for business transactions, with no monthly account keeping fees, no dishonour fees, no ABA upload fees, transaction fees or overdraw fees

Source: Tyro

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Westpac

Westpac offers merchant services including:

  • EFTPOS 1 Mobile and EFTPOS 1 Stand-alone are two portable, cordless payment terminals that enable contactless tap, swipe, or insert chip payments. They connect via IP/Ethernet, Wi-Fi, 3G and dial-up, with back-up communication options.
  • EFTPOS 1i is a payment terminal integrated with your point of sale system.
  • Mobile PayWay is Westpac’s most popular product according to their website. This compact, portable payment terminal is enabled for contactless tap, swipe, or insert chip payments, and connects via Bluetooth to an app on your Apple or Android smartphone or tablet device.
  • Westpac-hosted PayWay enables payments through the eCommerce store on your website (PayWay Net) and over the phone (PayWay Phone).
  • Virtual Terminal app then turns your computer or tablet device into a EFTPOS terminal so that you can accept phone, fax, or mail orders online.
  • PayWay API allows you to customise and integrate your phone sales, website, or business software with your credit card payments.
  • Third party payment gateway is another option for receiving online payments.
  • Recurring billing and batch payments enabled via direct debit, MasterCard, Visa, American Express, Diners Club, and JCB.

Source: Westpac Banking

Find more financial solutions for your small business using the Canstar business products comparison website:

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