Card Surcharges
As of 1st of October will MYOB be charging us the 1.8% Credit Card surcharge + the .25c transaction fee or will it be removed as per the RBA's recommendation?
Forum Discussion
I understand the guidelines mean that we can no longer pass on the fee/surcharge post October 1st. But shouldn't the 1.8% be reduced given that MYOB's wholesale interchange fees will going down? If MYOB keep it at 1.8% we will definitely be turning this feature off. Please tell us now as invoices being sent out now may well be getting paid in October.
Hi Louisa33 , the fees associated with online payments (1.8%+25c) are being reviewed as part of the changes, but I do not know if/what the change will be.
I would recommend registering for the webinar as we might know more by then and be sharing during the webinar.
You can find the webinar registration details here to save your spot.
Hi Mike,
I hope there is some good news there although I am not holding my breath given what has been communicatd by MYOB so far! If MYOB decide to keep their fee at 1.8% despite the interchange fees being capped at 0.3% for domestic credit cards this seems to contradict the aim of the RBA introducing the caps. Which are there to minimise the costs to businesses who now have to absorb the costs themselves. Not for companies like MYOB who act as an intermediary to just increase their profit margin.
I have another question... if we turn off online payments on or close to October 1st what will happen to customers who have already had their invoices emailed with the link to pay via credit card. They won't be able to pay via credit card with the link I hope?
Hi Louisa33
Thanks for checking in for an update. To confirm, we are reviewing our pricing ahead of the October changes.One clarification though: the 0.3% cap specifically applies to interchange fees on consumer credit cards. Interchange is only one part of the total processing fee (alongside scheme fees, acquirer costs, etc.), and debit/prepaid cards are actually moving to a different, lower cap (0.16%). So there are genuine savings coming, but they won't mean our overall rates drop to 0.3% across the board.
We'll share updated pricing details before the changes take effect on 1 October.
Regarding the last question. If you disable the online payments feature, this will apply to new invoices that are created. It will not remove the option from existing invoices that have already been sent with the link.Hi Mike,
I am aware that it was not going to reduce to 0.3% as you have other costs and profit margin etc. However I was hoping for more than a 0.1% reduction! Could MYOB perhaps consider a 2-tier approach? So a cheaper rate for the standard card types, as the 1.7% also includes Amex etc
I have turned it off now by default. We will be turning it on manually for pre-paid (non account) invoices under $2000, as it is very convenient for these types of payments. (We just want to avoid our 30 day customers using it to pay 10k plus accounts every month, as a free cash blow boost for them.) I also updated the invoice template to advise that we have turned off online payments by default and explaining this policy. I also said to get in touch with us to re-issue the invoice if the online payment option is not available when it should be. As I am sure that we are going to forget to turn it on sometimes!
For everyone else worried about turning off online payments and customers paying previously issued invoices online, I found somewhat of a workaround.
- Turn online payments off by default across the board.
- Manually change any invoices which have already been issued to turn off the surcharge.
- Email the invoice again.
- Then if you click on the link online payments no longer appears
