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The emergence of a cashless society and how to combat the fees that come with it

How often do you tap your card or phone to pay versus paying with cash? 

As society is transitioning to digital wallets, it is evident that there is a rise in cashless payments. Data from the Reserve Bank of Australia (RBA) shows that cash only accounted for 13% of all payments in 2022, highlighting just how prominent card payments are - and why it’s essential for beauty businesses to accept card payments. With this, a growing fee emerges for business owners: EFTPOS fees. These fees can become quite significant and cut into a business’s profits.                       

Fees is a trigger word these days, especially for small to medium-sized businesses. Businesses are struggling with record-high costs while trying to remain competitive in response to rising inflation and interest rates. Labour costs, goods and overheads like electricity bills and petrol are all going up. Conversely, EFTPOS fees are often higher when your business does well, as they are typically percentage-based, based on your monthly turnover. That means that a particularly good month of sales could equal a larger bill in EFTPOS fees.                   

If you and your business are looking for cost-cutting measures, you’re not alone. But what are some of the best ways to tackle this? For one, try negotiating with your suppliers. This can be a good pattern to approach regularly, calling up service providers and seeing if there are any deals you can tap into or the chance to renegotiate your rates.  As well, don’t be afraid to shop around and compare rates to make sure your business is getting the best deal. Smartpay offers beauty merchants a Zero Cost™ EFTPOS solution that allows you to automatically pass on a small surcharge to cover EFTPOS fees and help you save on your EFTPOS bill - reducing costs and improving the cash flow in the process.                       

In a recent Smartpay survey, over half of small and medium-sized businesses surveyed had actively noticed an increase in clients supporting local businesses, suggesting that clients might be more open to embracing surcharges than you think.      

“When you are a small business trying to grow, keeping costs down is critical. The fees we were paying did not make a lot of sense, so we started to shop around. That’s when we came across Smartpay’s Zero Cost™ EFTPOS,” shared Michael, business manager of Sophie’s Beauty Room, one of the many beauty salons in Australia that use Smartpay.  As a small business, Sophie’s Beauty Room relies on repeat business, so Michael was worried about how clients would react to the business introducing a surcharge. However, he discovered that they didn’t need to worry.


“We placed a sign up at our register and found our customers were OK with a small surcharge. Our customers know we are a small business and provide excellent service,” said Michael.

Now, Sophie’s Beauty Room is using the $7,000 they’re saving annually in EFTPOS fees to invest back into the business. “We’re using the savings to pay for our new loyalty programme, so our customers still benefit. This is a significant change to help us grow the business and reward our loyal customers,” said Michael.                 

Whatever solution is right for your business, a cashless society is here to stay. Exploring your options could help your beauty business save up to thousands a year.                       

This article was written by Smartpay Australia. Sign up to Zero Cost™ EFTPOS via the ABIC landing page and receive a $250 cashback. T&Cs apply.                                                       



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