$6,800 Annual Savings Driving Rapid Uptake of Zero-Cost EFTPOS Among Aussie Businesses

A growing number of Aussie businesses are ditching traditional EFTPOS fees in favour of a new approach that’s saving them thousands each year.

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Thanks to zero-cost EFTPOS solutions, small business owners across Australia are now saving an average of $6,800 annually. So, it’s not hard to see why the uptake is surging.

In fact, with rising operating costs and margins tightening all the time, many see this model as a smart and simple way to cut their expenditure.

What Is Zero-Cost EFTPOS?

Zero-cost EFTPOS is a card payment solution where businesses pay no transaction fees to accept card payments. The customer pays a small surcharge (usually around 1.5% to 2%), which covers the cost of the transaction.

Here’s how it works:

The point-of-sale system applies the surcharge automatically.
The surcharge amount is shown to the customer before they tap or swipe.
Vendors get the full payment in their account.

It’s an increasingly popular option for Aussie business owners who are tired of being stung by hidden fees and charges.

A Closer Look at Smartpay’s Zero-Cost EFTPOS Model

Smartpay is leading the charge with its no-cost EFTPOS terminal, which is designed to eliminate the usual merchant service fees that come with accepting card payments.

Instead of absorbing the payment processing costs, business owners can pass a small surcharge onto the customer at the time of transaction.

It’s completely compliant with surcharging rules in Australia, and more importantly, it’s optional for customers. This means they could always choose to pay cash if they preferred.

This EFTPOS surcharge model has gained popularity among small retailers, cafes, and service providers across Australia, who are looking to keep overheads low while still maintaining a good level of customer experience.

Why Are So Many Businesses Switching?

Traditional EFTPOS machines charge a merchant service fee on every transaction, sometimes as much as 3%. Over the course of a year, that adds up quickly. Often to a point where it reaches thousands of dollars.

According to internal Smartpay data, adopting their Zero-cost EFTPOS model could save businesses over $6,800 annually, depending on their transaction volume.

That’s money that can go back into your business, whether it be for buying stock, paying staff, or investing in its growth.

However, it’s not just about savings. Business owners can also benefit from the simplicity the system brings because as everything is automated, they don’t have to do any manual calculations or complex reconciliation.

There is also a clear transparency with this method as businesses are not hit with hidden costs or obliged to enter into a lock-in contract.

Is It Legal to Surcharge in Australia?

You might be wondering if surcharging is legal in Australia. Well, the short answer is yes, as long as it’s kept within the “cost of acceptance”. That means you can’t charge more than what it costs you to process the card.

In fact, the ACCC regulates this, which ensures that businesses remain compliant.

Perfect for Small Businesses

Currently, over 40,000 businesses are using the Smartpay Zero Cost™ EFTPOS solution. It seems to be particularly attractive to:

Cafés and takeaway shops
Hairdressers and barbers
Beauty salons
Retail stores
Allied health professionals

In other words, businesses where customers typically pay small amounts with a card. And for whom margins can be tight.

For these business owners, every dollar counts. So, the option to avoid thousands in payment processing costs each year makes this model hard to ignore.

What’s the Catch?

You might be wondering, “Why isn’t everyone doing this?”. And that is a perfectly valid question.

Probably the main reason why is customer reaction. While most Australians are used to seeing small surcharges, some don’t like the idea of having to pay extra for the act of purchasing something they want.

That said, it’s important to keep them reasonable and transparent. If the surcharge is clearly displayed and explained, many customers won’t bat an eyelid.

How to Get Started

Signing up for a zero-cost EFTPOS solution is generally fast and hassle-free. With providers like Smartpay, you’ll get:

Free terminal rental
No monthly fees
No lock-in contracts
Plug-and-play EFTPOS machine delivered to your door

You’ll need an Australian Business Number (ABN) and a business bank account to get started. But once you’re set up, you can start accepting card payments straight away without being charged for the privilege of doing so.

Recent News

Shift4, an American company specialising in integrated payments and commerce technology, recently agreed to acquire Smartpay for NZ$296.4m ($180m) in an all-cash deal.

Shift4 CEO Taylor Lauber said: “This acquisition follows the Shift4 playbook to a tee. It deepens our strategic presence in Australia and New Zealand, providing a significant opportunity to offer our full suite of software and payments solutions in the region,”

“By combining our payment infrastructure with Smartpay’s distribution capabilities, we’re well positioned to go-to-market at scale in the region with our leading products and services,” said Lauber

After concluding negotiations with Smartpay, Shift4 announced that the offer price of NZ$1.2 ($0.71) under the scheme represents its best and final proposal in the absence of any competing bids.

Smartpay CEO Marty Pomeroy said: “Smartpay remains focused on being the payments partner of choice, investing and adding scale to our existing Australian and New Zealand business,”

“The proposed transaction, if completed, will see Shift4 partner with Smartpay to deliver an enhanced value proposition to our customers, employees and other stakeholders while delivering immediate and derisked value to our current shareholders.” he said.

EFTPOS Zero-Cost Market Statistics – Australia

Market Growth & Projections: Australia’s payments market size is valued at USD 1.07 trillion in 2025 and is projected to reach USD 2.29 trillion by 2030, at a CAGR of 16.44%, driven by high internet penetration rates.

Zero-Cost EFTPOS Adoption: Any business with an average turnover of over $10,000 per month in card transactions can apply for Smartpay Zero Cost™ EFTPOS, indicating the threshold for accessing fee-free payment solutions.

Digital Payment Trends: The statistics are a reflection of consumers preference for contactless and other card-based transactions, with the Australian Payments Network reporting a continued shift toward digital payments as cash usage declines.

Business Adoption Statistics: Nearly 80% of adults made at least one online purchase in 2023, according to the Australian Bureau of Statistics, reinforcing demand for efficient digital payment solutions.

Small Business Impact: The platform drove AUD 3.6 billion in net benefits for small merchants in 2024, with roughly 33% reporting revenue growth after adopting account-to-account (A2A) payment solutions, according to Fintech Australia.

Fee Reduction Initiatives: Australian Payments Plus (AP+) has announced a 22% drop in wholesale fees for the domestic eftpos network, demonstrating ongoing efforts to reduce payment costs.

With the economy being as competitive as it is, small businesses need every advantage they can get. The zero-cost EFTPOS model is one practical way to reduce costs without negatively impacting on the level of customer service they can provide.