When evaluating your options for a payments partner, you want to choose a provider that fits your business like a glove. Should you go with your bank or POS provider? Or, a local payments expert like Smartpay?
Learn the who, what and how behind in-store payments in our handy guide below. Get ready to accept seamless payments today.
Traditionally, in-store payments in New Zealand are made up of three types: debit card payments using the “eftpos” network, credit card payments and contactless payments (which can be with a debit card, credit card or smart device payment via a service like Apple Pay). We’ll look at how this has worked to date in New Zealand, and share a way that this can be further simplified—with built-in savings for your business.
When it comes to EFTPOS transactions for these three payment types, there are three main services you need to lock in to get up and running:
When it comes to EFTPOS, one of your first questions will likely be: what’s the cost for my business to accept EFTPOS payments?
The biggest chunk of this cost is from who helps facilitate transactions for your business, which is a bank or an acquirer (like Smartpay!). They will assign your business a percentage rate to accept payments, called a Merchant Service Fee (MSF), which covers the facilities they provide. MSF varies by industry, card type and transaction volumes.
While accepting EFTPOS and debit cards is included in the payment network fee, an additional MSF per transaction is charged for accepting credit cards and contactless transactions.
They’ll also help you by providing a Merchant ID (also referred to as a Merchant Number), which you need if you sign up to the payment network (read on to learn more about this!). The bank or acquirer also ensures that your transactions are settled into your business bank account.
In New Zealand, merchant numbers are usually issued by 'acquirers'. An acquirer is an organisation that collects funds on behalf of merchants, such as banks.
You will need to fill out an application form and pay a fee in order to get a merchant number in NZ.
Simply put, a payment network manages the electronic funds transfers to your bank account. They authorise transactions and make sure you're getting the correct amount of money.
Payment networks help:
Traditionally in New Zealand, this is a separate service that you need to sign up to, with Worldline being the largest payment network provider. You would need to get a Worldline ID and provide this to your EFTPOS machine provider and your acquirer to get your payments up and running. But more on this later—and how Smartpay can help your business simplify!
As a final key piece of the puzzle, you’ll want to get your hands on a physical EFTPOS machine that allows you to accept electronic payments in a flash. This is where an EFTPOS provider comes in!
On top of the EFTPOS machine itself, a quality provider also offers ongoing security compliance and support. Providing reliable expertise that's up-to-date with the latest advancements, so you can keep those payments rolling in.
An EFTPOS provider can help:
Smartpay has operated as an EFTPOS machine provider in the New Zealand market for decades, offering a best-in-class experience for our Long Term and Short Term rental customers. We help our customers navigate the full payments setup process, including walking through how to engage with the other providers that make up their solution.
If researching and signing up for all these different providers sounds cumbersome and time-consuming, it can be! But thanks to Smartpay, that hassle can be wiped away: With Smartpay Low Cost Tap & Pay, we can help your business roll out a more streamlined payment experience and get up and running quickly.
Get a merchant number for your business ASAP – so you can get paid faster.
Streamline your payment backend – enjoy fuss-free, speedy operations and focus on what you do best, running your business!
Get a tailored rate for every Visa and Mastercard contactless and credit transaction; you’ll pay the same low percentage rate across these payments.
Enjoy the backing of a 24/7, local customer support team – ready to lend a hand anytime, anywhere.
Ultimately, your in-store payments solution is a critical part of business operations, and you want to make sure the partner(s) you choose have your back.
According to Smartpay SME research (2023), the top 3 drivers of customer satisfaction are customer support/ease of doing business, fees and intuitive EFTPOS terminal.
Keep this in mind when searching for a reliable EFTPOS provider! Things you want to look out for include:
Flexibility: You can accept the types of payments your business needs
Cost savings and reduced admin: low fees, ideally from as few parties as possible
Reliable EFTPOS machines: Your terminal has multiple connectivity options (i.e. Wi-Fi and SIM card)
Backed by the best: When you have any issues, your solution comes with 24/7 support, including an in-house technical support team
Value adds: Offer additional features and add-ons, such as POS integration and a portal to view your transactions
When it comes to how payments happen in your store, you want to make sure you’re getting the best from your EFTPOS machine provider. Your EFTPOS machine should keep pace with you and your growing business, no matter what the future throws at you. Keep an eye out for EFTPOS features that help you adapt easily to any sea change!
