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
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.
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 canI don't see a flat fee a benefit at all, whatsoever.
I would bet my last dollar that MYOB is using least cost routing, so why can't you offer us dynamic pricing based on the type of card a customer is using?
Instead, you've just pulled a number out of thin air and decided "We'll charge this fixed fee no matter if the customer is using a Westpac debit card or a Platinum AMEX".So why isn't MYOB passing on the exact costs to process each transaction to us, your customer? It's fair that you add a little bit on top, as I understand there's other costs involved in processing payments and you're not just going to pass through whatever low rate you've negotiated with your own payment provider, but just lumping us all into a single bucket fee seems greedy.
My advice would be to find a 3rd party payment processor, there are many to choose from and some are cheaper than 1.7%. Just send that particular customer a link from the external platform along with your MYOB invoice every month, and build in the payment fee to your price.
