And what is our preferred payment method?

I just got off a 30-minute Google meet with the team of about 30 people at Peach Payments, (one of our online payment merchants, the other being YOCO), for their Merchant Morning Meeting, where we showcased Bicycle Couriers and how we use the Peach Payments system.

It was a very productive catch-up and we discussed the following. By the way, this transpired after Peach Payments’ Head of SME Growth & Marketing, Joshua Shimkin, became a valued and happy #bicyclecouriers customer.

Let’s take an example

Bicycle Couriers aim to render the very best boxed bicycle transport service in South Africa, and in order to do so we make use of a very wide network of service providers. These are all like-minded bicycle-friendly people, but they do not come for free.

When we sell a product for R600 and pay 3% in online card payment processing fees, we do not pocket the full sales amount, in fact, we still have to pay our suppliers. Assuming our cost of sales is R400 in this example, the 3% online payment fee suddenly becomes 9% when expressed as a percentage of our gross profit (the remaining R200).

That is a substantial amount (over 10% when adding VAT), which is why I hint towards customers rather paying us via EFT in the checkout process. But even though EFT’s are cost effective, it is a bit more admin. However, in this case, probably worth the 10 percent…

Then Carl Thomen mentioned instant EFT’s, currently charged at 1.5% per transaction. This becomes more palatable, and you don’t have to chase proof of payments. I’ve highlighted the benefits of instant EFT’s below.

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Brass tax

Whichever payment method you choose, the most important thing is that you enjoy our excellent service levels and come back for more. Tell your mates đŸ™‚

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