Hi madamswer, I am not an expert here but some comments
1. In terms of the surcharges, I assume your customers ultimately pick up the tab for those surcharges. But who deems what the surcharges are? Tyro? Answer - Yep - we pass on surcharges to customers, There is a cost of acceptance suggested surcharge (from Tyro) but the business has an option to charge more/less noting that it would be pretty poor form to gouge. Tyro makes recommendations on charges determined from past card usage. We are a large taker of cash still, so our card payment business is probably 50/50. Currently we are "under-recovering" our fees but this is less than $100/month.
2. Presumably there is a monthly rental price at which it would no longer make sense for you to use a terminal. Would you be prepared to say what that price threshold is? (I promise I'm not an undercover agent for Tyro; I'm just trying to get a feel for the intrinsic "value-in-use" of a terminal to the merchant, because it is that which will ultimately dictate the economics of the business.)
Very tough ? to answer but would have to say that without a EFTPOS terminal your business is dead. The younger generation do not carry cash full stop. in all honesty - Tyro could charge us $300/month for machine rental ( of course I am ignoring competitive process here) and we would pay it. imo - no business can operate today without an EFTPOS terminal
TYR Price at posting:
81.5¢ Sentiment: Hold Disclosure: Held
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