MERCHANT SERVICE DEALS EXPLAINED

Merchant service fees and charges are complicated, difficult to understand and almost impossible to compare.

In 2020 there are new merchant deals available in Australia, but card scheme fees remain stubbornly high and fairly confusing.

What do Visa and Mastercard charge for credit and debit card transactions?

Visa and Mastercard charge interchange fees to banks. The banks charge the shopkeeper. The shopkeeper can choose to surcharge customers or absorb the cost of accepting card payments.

For a simple debit card transaction at a Point of Sale in Australia, Mastercard  is charging up to 0.165 per cent in interchange fees. That is $8.25 per $500 transacted.

Visa is charging up to 2.2 per cent in interchange fees. For contactless debit card transactions, Visa is charging up to 16.5 cents.

Mastercard’s interchange fees for credit card transactions are up to 0.88%. Many Mastercard and Visa credit card transactions will be charged at around the 0.50% to 0.80% range.

Compare NAB’s Merchant Service plans

National Australia Bank is a traditionally popular bank with Australian business. NAB’s merchant plans for retailers requiring a terminal charge around 1.0% to 1.5% of transactions or turnover. There is a monthly minimum cost plus a percentage of transactions over the monthly minimum turnover.

Compare Commbank’s Merchant Service plans

Commonwealth Bank is Australia’s biggest bank by customer numbers and market capitilisation. Commbank’s Simple Merchant Plan charges a flat monthly fee plus 1.5% on turnover over the minimum amount.

Compare ANZ’s Merchant Service plans

ANZ has some of the most popular credit cards in Australia and was the first bank to offer Apple Pay for its card customers.

For merchants, ANZ has a number of plans with different pricing structures and offers interchange-based pricing for large businesses. Finding the actual prices that ANZ charges merchants can be tricky. There’s no actual prices on ANZ Bank’s pricing page for merchants.

Compare Westpac’s Merchant Service plans

Westpac is currently waiving set-up fees ($82.50) and monthly merchant fees for the first 12 months of new contracts. Monthly fees on Westpac merchant deals start at $55 per month with $3,500 of Visa, Mastercard and eftpos transactions included. Westpac has a PDF Guide to Merchant Service Fees & Charges.

Compare Tyro’s Merchant Service plans

Merchants can be paying up to 2.2 per cent per transaction even with Tyro.

THIS INFORMATION IS GENERAL IN NATURE AND DOES NOT TAKE INTO ACCOUNT YOUR PERSONAL SITUATION.  YOU SHOULD CONSIDER WHETHER THE INFORMATION IS APPROPRIATE TO YOUR NEEDS, AND WHERE APPROPRIATE, SEEK PROFESSIONAL ADVICE FROM A FINANCIAL ADVISER.

IF YOU OR SOMEONE YOU KNOW IS IN FINANCIAL STRESS, CONTACT THE NATIONAL DEBT HELPLINE ON 1800 007 007.