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What is Tyro?
Tyro is a new Australian bank that started its life as an eftpos terminal provider. Even today, it’s best known for providing eftpos terminals to the retail, hospitality and health industries.
Tyro was the first company to offer an integration between the eftpos machine and point of sale that didn’t require a wire. The existing solution at the time, PC-EFTPOS, required wires between the two devices.
The company has perfected the point of sale integration and arguably has the strongest solution in the market. They integrate with over 300 point of sale / practice management solutions, and offer functionalities such as bar tabs, pay@table, split bills, and more.
Tyro offers two device types:
- Integrated EFTPOS: This is the Yomani XR terminal, which is a large eftpos machine best suited to the countertop. It includes a built-in printer and 3G backup.
- Mobile EFTPOS: This is the Yoximo terminal, which is a smaller and more portable eftpos machine that can be used to take payments anywhere. The configuration that Tyro uses also includes a built-in printer and 4G backup.
These terminals are perfectly fit for purpose. However, compared to equivalent terminals from Verifone and Ingenico that other payments providers use, they are a little large.
Tyro accepts quite a broad range of payment types, including:
- Visa and Mastercard
- American Express, Diner’s Club, UnionPay and JCB
- Zip Money (coming soon)
- Medicare Easyclaim and private health insurance claiming
Pricing & Fees
Monthly Volume Under $20k / Month
Tyro’s pricing starts at 1.10% for domestic eftpos, Visa, Mastercard and UnionPay transactions, which is the cheapest quoted pricing for low transaction merchants in the market.
However, there is a 0.40% fee if the customer pays using an international card, and an additional 0.40% fee if the customer wants to pay in their own currency.
They also accept American Express, JCB and Diner’s Club transactions. Merchants must agree on transaction fees directly with those institutions and Tyro will charge at 0.10% fee on top of the agreed rate.
Finally, Tyro is the cheapest provider of Alipay transactions through the eftpos machine at 1.30%. This rate is significantly better than the 1.50% that SmartPay charges or the 12c + 3.00% that Adyen charges for the same feature.Tyro transaction fees
|Payment Type||Domestic||International||International w/ Currency Conversion|
|American Express||AMEX Rate + 0.10%||AMEX Rate + 0.10%||AMEX Rate + 0.10%|
|JCB||JCB Rate + 0.10%||JCB Rate + 0.10%||JCB Rate + 0.10%|
|Diner's Club||Diner's Rate + 0.10%||Diner's Rate + 0.10%||Diner's Rate + 0.10%|
Monthly Volume Above $20k / Month
Tyro will offer bespoke pricing to merchants that transact over $20,000 per month. They offer two pricing structures:
- Semi-Blended Pricing: A standard transaction fee per card category. For example, 0.80% for eftpos transactions, 1.00% for Visa Debit transactions, etc. In this case, there are very few surprises with the cost of each transaction.
- Cost-Plus Pricing: This is also known as interchange-plus pricing. It is simply the underlying cost of processing the transaction, plus a Tyro fee. In this structure, fees will differ for every single transaction, depending on the card and customer type.
For those who are interested in learning more about credit card fees, feel free to check out our article.
As mentioned earlier, Tyro was the first company to offer an integration between the eftpos machine and point of sale that didn’t require a wire.
The company has perfected the point of sale integration and arguably has the strongest solution in the market.
There are two common ways to build an integration between the eftpos machine and the points of sale:
- Cloud connection: The point of sale connects to the integration provider via WiFi, and the terminal also connects to the integration provider via WiFi or 3G.
- Local connection: The point of sale connects to the terminal via WiFi or Bluetooth, and the terminal connects to the integration provider via WiFi or 3G (e.g. Tyro).
Tyro’s integration is cloud-based, which means that both the point-of-sale and the terminal connect to their integration software.
The benefit of this model is that merchants don’t need to rely on stable WiFi to maintain their integration. They have the option of using an ethernet cable for their point of sale and using 3G for their terminal.
Point of Sale Partners
POS integration is only available if you choose Tyro as your payments provider and have a compatible point of sale software.
Tyro has integrated with approximately 300 point of sales systems in Australia. Although this isn’t quite as many as PC-EFTPOS, Tyro has all of the big players covered, so chances are your point of sale software is compatible.
Tyro’s integrated EFTPOS enables all transaction types to be instantiated on the point of sale. This includes:
- Purchase with or without cash out
- Cash Out
- Split bill by percentage or by value
- Mail order/telephone order (MOTO)
Hospitality businesses will be glad to hear that Tyro also enables integrated Bar Tab Mode, also known as pre-authorisation.
This allows you to open a bar tab on your point of sale software. The customer simply chooses the amount, then taps or inserts their card, and funds are reserved for the bar tab.
From then on, the customer can make additional orders without using their card. And at the end of the night, their card is only charged for what they used up, not the total bar tab amount.
For the business, this means that you never have to worry if a customer can afford to pay their tab or whether they will actually pay it at the end of the night. For the customer, this means shorter queues and spending management.
Pay@Table is exactly what it sounds like. It enables you to take payments at the table, away from your point of sale software.
Usually, with integrated eftpos, you commence a transaction on the point of sale and the value automatically sent to the EFTPOS machine. In pay@table mode, you use the eftpos machine to request the payment amount from the point of sale.
With Tyro’s pay@table functionality, you can take your wireless eftpos machine to the table, and then allow customers to split the bill and pay at usual. And the best thing: the POS is not locked while a customer is paying at the table, so another staff member can continue to take payments using the POS.
A much better customer experience than getting a group of patrons to get up, walk to the counter, line up, and pay individually.
One limitation of Tyro’s pay@table functionality is that you’ll need a dedicated terminal that is continuously in pay@table mode. For most businesses, this means that you’ll need a terminal for normal transaction and a terminal for table transactions, which results in additional terminal rental fee.
Tyro offers eftpos tipping functionality when paying at the table or at the counter.
The customer is presented with their purchase amount on the eftpos screen. After confirming this is correct, they are presented a tipping screen with the option to leave a tip. This can be either a percentage-based tip or a fixed fee tip, and the customer has full control over how much.
Tyro also offers split bill functionality when paying at the table or at the counter.
Customers have the option of paying for a portion of the total table bill, either split by percentage (e.g. a table of 5 each pays 20% of the total table bill) or by fixed amount. The terminal can be passed around for everybody to make a transaction and everything reconciles perfectly with the total bill.
Tyro also offering least-cost routing, which they market as Tyro Tap & Save. This means that all debit card transactions are automatically routed through the cheapest card network (e.g. eftpos, Visa debit or Mastercard debit).
According to Tyro, this has saved their customers an average of 8.1% on their transaction fees. Broken down by industry, Tyro claims an average save of 9.6% for hospitality businesses, 7.3% for retail businesses, 4.2% for health businesses, and 5.3% for service businesses.
There are two types of eftpos-related health claiming:
- Medicare Easyclaim: Connects to the Department of Health for bulk-billing Medicare items by swiping a patient’s Medicare Card
- Private Health Claiming: Connects to individual private health insurers to claim for services covered by private health insurance by swiping a patient’s private health insurance card
Most general practitioners will only need Medicare Easyclaim, whereas dentists and allied health professionals (e.g. physiotherapists, speech therapists, etc.) will most likely need both Medicare Easyclaim and private health claiming.
Tyro offers both Medicare Easyclaim and private health claiming through their terminal. And they partner with enough private health funds to cover 98% of the insured population.
Only two health claiming providers enable an integration between the eftpos machine and point of sale (also known as practice management software): Tyro and HICAPs. However, Tyro integrates with over 30 practice management software, whereas HICAPS only integrates with 13 systems.
It is worth noting that Tyro will charge an additional $10 monthly fee per terminal that required health claiming functionality.
Tyro offers a dynamic surcharging feature that automatically recommends a surcharge amount that covers the cost of card acceptance. This means that businesses can effectively eliminate merchant fees by passing them onto the customer.
Businesses can be confident that their surcharge is compliant with Reserve Bank rules, as Tyro calculates the surcharge based on the actual fees paid over the last twelve months.
This can be turned on with one click from within the Tyro portal.
Tyro offers multi-currency support, also known as direct currency conversion.
The eftpos machine automatically detects that a customer is using a foreign card and presents the option to pay in Australian dollars or the customer’s home currency. If the customer chooses, the price of the transaction is shown in the customer’s home currency with the exchange rate included.
This is great for customers, who know exactly how much they are paying for their items. It is also great for merchants, who are more foreigner-friendly and are less likely to see chargebacks from customers shocked about the price of a transaction.
Dedicated Bank Account & Settlement
Tyro is actually a bank, so they do offer bank accounts for their customers. And customers with a Tyro bank account get same day settlement for their eftpos transactions.
But the devil is in the detail. Same day settlement does not apply to AliPay, health claiming, or Afterpay. And it only applies to American Express, JCB and Diner’s Club if there is a Tyro Direct Settlement agreement.
Nonetheless, merchants will be able to access their funds the same day for the majority of transactions (i.e. all eftpos, Visa and Mastercard transactions).