Across the small and medium business community, business owners have become increasingly concerned about the rising cost of contactless debit payments. This has brought the current ‘tap and go’ payment system into debate by the Reserve Bank of Australia (RBA) Payments System board, urging banks to introduce innovative alternatives, like least-cost routing, that allow you to foot less of a cost for contactless debit payments. In fact, given the popularity of contactless transactions, the inability to process transactions through least-cost routing is costing the Australian economy an estimated $558 million.
In March 2018, Australian business-only bank, Tyro launched its Tap & Save feature otherwise known as least-cost routing, well ahead of the government deadline. This feature allows debit tap & go transactions to be processed through the more affordable EFTPOS network.
According to recent ABA statistics, Australian consumers are more ‘tap happy’ than anywhere else in the world. A whopping 82 per cent of consumers use contactless payments at least once a week. As you can imagine, this gives businesses huge potential to save on card payments by using least-cost routing.
Tap & Save is just another way Tyro and Smartsoft are working together to pioneer solutions that reduce day-to-day costs and help you succeed.
How much can you save with least-cost routing?
On average, Tyro customers could save over 6% on Merchant Service Fees (MSF) through Tap & Save+. The actual savings vary depending on your business' card mix, transaction volume and amount, industry and pricing plan; and you are encouraged to speak with a Tyro specialist to find out exactly how much you can save.
To give you an indicator of your potential savings (according to the RBA):
- The average service fee charged on swiped debit card transactions through scheme card networks is 0.58 per cent
- The average service fee charged on swiped debit card transactions through eftpos is 0.26 per cent (that’s a saving of over 50 per cent!)
Why has Tyro delivered least-cost routing?
When it comes to new innovation, Tyro are keen early adopters. That’s why they are committed to making least-cost routing available to their entire customer base; and with the launch of the initiative will benefit their merchants at the expense of its own profits.
Already using Tyro to process health fund claims and card transactions?
If you are already using Tyro and you want to turn on least-cost routing, you will need to contact Tyro directly to enable the Tap & Save feature on 1300 966 639.
Not a Tyro customer?
For new customers of Tyro, you’ll be able to opt-in via their onboarding process. Start reducing your transaction fees today by making the switch to Tyro. Speak with a Tyro specialist to see how much you can save with Tyro’s Tap & Save by entering your details here.
For a limited time, Tyro is offering a $200 Digital Reward for Smartsoft customers when you apply for Tyro EFTPOS by 30 June 2018*. This reward can be redeemed at Good Food, Coles, Wish, Myer, Flight Centre, JB Hifi or Rebel.
Tyro Payments Limited ACN 103 575 042 AFSL 471951 is the issuer of its own financial products. As Tyro does not take into account your personal circumstances, please consider if these products are suitable for you. You can contact Tyro on 02 8907 1700 or tyro.com and access Tyro’s dispute resolution process at tyro.com/complaint-resolution-process/.
+ 6% savings on Merchant Service Fees (MSF) represents the potential savings of Tyro eligible merchants (calculated as an average), over the period December 2017 to February 2018 and was based on actual eligible transactions processed during this period. Eligible transactions are contactless debit card transactions from $15 to less than $1,000.
*The $200 digital reward offer is only available to Smartsoft customers who are new to Tyro and apply by 30 June 2018. You must have a new ABN to Tyro (excludes merchant groups, corporate groups, buying groups or franchise groups).To be eligible to receive the $200 digital reward, Tyro must receive your completed Tyro EFTPOS Banking application by 5pm AEST 30 June 2018; you must satisfy Tyro's credit and onboarding requirements; and become a Tyro customer within 2 months from the Banking Application date. The $200 digital reward will be emailed to the email address captured on the Account 4-10 weeks after the applicant has been approved as a Tyro customer. Tyro will email the digital reward as a unique code issued by Edge Loyalty Pty Ltd to be redeemed at eldigital.com.au within 1 month from the issue date. This advertised offer is not applicable or valid in conjunction with any other advertised or promotional Tyro offer. Subject to the Terms and Conditions of Digital Rewards by Edge Loyalty Pty Ltd available at https://eldigital.com.au/Pdf/terms.pdf. Tyro may pay financial benefits and/or referral fees to our partners.
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