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
MYOB just announced in their webinar that they are reducing the payment fee a whopping 0.1% from 1.8% + 25c to 1.7% +25c, and now we have to bare the costs.
I'll be disabling card payments immediately on 1st Oct.
This is an absolute joke to say the least.
Just a heads up, from my understanding you may want to disable Online Payments now rather than waiting until 1 October.
The change appears to apply to payments made from 1 October, rather than invoices issued from that date. So if you issue an invoice now with Online Payments enabled and the customer doesn't pay it until after 1 October, you could end up having to absorb the 1.7% + 25c transaction fee.
I've decided to switch mine off now for exactly that reason. I'm not prepared to risk having outstanding invoices paid by card after 1 October and being forced to absorb the fee.
I'll also be exploring alternative payment and accounting options going forward. If MYOB's solution is for small businesses to simply absorb these costs, then I think it's only reasonable for us as customers to reconsider whether MYOB continues to offer the best value for our businesses.
MYOB confirmed in the webinar that we don't need to do anything. If an invoice is issued on 29th September for example and you are passing on the surcharge to your customer, and they pay it on or after the 1st, the surcharge will automatically be removed from the invoice when they go to pay it, and will simply be passed on to you.
I'm hoping to clarify what will happen if I send out an invoice on 29th Sept and then on 1st Oct I disable online payments, will the customer still be able to pay it via card, or will they get a message stating that this payment method is no longer available. If I can find out, I'll post back.
Yep, that's exactly my concern. The customer surcharge disappears from 1 October, but MYOB's transaction fee doesn't, so the 1.7% + 25c is instead charged to us as the business.
What's also laughable is that I just switched Online Payments off for my business and immediately received a pop-up survey asking why I was disabling it. Needless to say, I made my reasons very clear.
Hopefully more MYOB customers make their concerns known, both here and through that feedback survey. If enough businesses are vocal about this and start disabling Online Payments as a direct result, perhaps MYOB will actually reconsider its approach rather than expecting small businesses to simply absorb the cost.
For anyone else considering switching Online Payments off, this is the survey MYOB presented when I disabled mine. Make sure you tell them exactly why you're switching it off as well.
Hi Lavinia9 ,
If you issue an invoice while online payments is enabled, and then later disable it.
Then online payments will still be active on that invoice, as it was available at the time it was issued.
Disabling online payments will apply to new invoices you create after having disabled it
Hi henry_ ,
To be clear, this change to surcharging is not being led by MYOB, this is an RBA change that our software must adhere to. It is not 'MYOBs solution' for you to absorb these costs. That is how the change by the RBA has been made.
You as a business can no longer pass the cost of accepting card payments onto the consumer paying the invoice.
In the same way that we would not be able to surcharge a fee to your for your monthly subscription payment.but MYOB can still charge us the fee...no thanks...turning it off...sadly one of our clients can only pay with CC so not sure what well do with them....
It is a cost associated with the ability to accept cards as a form of payment
Whether you were to take this service from a bank, or another provider, there will be a fee for you as the business no matter what.
The change here, is that businesses can no longer pass that fee on to the person making the payment.
One benefit to the flat fee with MYOB, is that is is the same regardless of the card type used, which is often not the case with banks (for example Amex traditionally carries a higher acceptance fee).
I definitely understand that the fee is not something that all business will be able to absorb if they are used to surcharging this.
But I want to provide these answers to try and provide as much clarity where I can
