1. Our costs on Commercial and Premium cards have increased. We need to pass this cost on. As of October 1st the cost of only your Premium and Commercial transactions will increase by 0.10% (one tenth of one percent).
2. Tyro continues to fight the ePAL eftpos price increase. So there is NO change to the cost of a domestic eftpos transaction i.e. when your customer presses the Cheque or Savings button.
3. Tyro’s advanced technology has been accredited with the important Payment Card Industry; Payment Application Data Security Standard. When using our technology, you are protected from card data compromise.
4. Tyro continues to invest in service availability and has achieved 100% up time of our acquiring system in FY2010/11.
I’d like to give you an update on Tyro and let you know about some recent developments.
Now in our fourth year of operation, Tyro has grown to serve over 5,000 Australian EFTPOS merchants. While we still only serve a little over 1.5% of the Australian merchant base, we believe that we’ve created a real and competitive alternative to the big banks, through value, service and security. We continue to strongly advocate the case of the often overlooked hard-working merchant. Tyro has been the only voice in the financial services industry fighting the interchange fee increase in the domestic eftpos debit system.
Visa and MasterCard Premium and Commercial Cards
We’ve recently reviewed the interchange and scheme fees of these card types. The mix used in the Australian market has changed, resulting in higher interchange scheme fees charged to Tyro. As a consequence the Merchant Service Fee (MSF) applicable to your merchant facility will increase by 0.10% (excluding GST). This increase only applies to Premium and Commercial Cards, all other cards’ fees and charges remain unchanged.
eftpos Debit Cards
Eftpos Payment Australia Limited (ePAL) announced an increase to the interchange fee of 10 cents for transactions in excess of $15 and 5 cents for transaction of less than $15 as of the 1st October 2011. Tyro has campaigned on your behalf against what we consider to be an untimely and unjustified increase. The banks however, have sided with ePAL to increase the interchange fee.
We continue the fight this increase by standing our ground on our existing interchange pricing agreements. For as long as we can hold this position, we will protect you from the ePAL interchange increase, in effect delivering the same base interchange transaction costs as Coles and Woolworths.
Tyro’s System Availability
We have designed and invested in technology that eliminates service interruptions. This now includes terminal technology that switches over automatically between servers and data centres. I’m happy to report that the result for fiscal year 2010/11 has been 100% availability of our acquiring system.
Having said this, our service is affected by the availability of our suppliers; we have suffered degradations of service through card issuer outages, Medicare system failures, merchants’ firewalls or ISPs failures and an instance of slow terminal printer performance. We are working with our suppliers, partners and merchants to improve their resilience.
Tyro’s Security Architecture
You might have followed recent reports in media about the increase in crime syndicates targeting Australian merchants, who are hacking into retailer’s computer systems and EFTPOS terminals to steal the customer’s confidential card data. I’m pleased to report that Tyro has had no data security incidents.
Tyro is the only independent Australian merchant services provider whose EFTPOS solution has been certified by Payment Card Industry Council (PCI) accredited independent security specialists, as PCI PA-DSS compliant. Whether operating in stand-alone mode or integrated with your POS systems, you can have confidence that your Tyro EFTPOS terminals read and exchange sensitive card holder and transaction data securely. With Tyro, sensitive data is quarantined from your computer, network or other devices.
The last financial year at Tyro has been very exciting. Being a small institution competing directly with the big banks is more challenging than ever. With your ongoing support, I’m confident that we can continue to grow to ensure that there is a real competitive alternative in the Australian EFTPOS business.