When most people think about payments in their business, they treat it like a box they tick once and never open again. You sign up with a bank, acquirer, or platform, the money flows in, and you move on. The problem is that this “set and forget” mindset can quietly bleed money from your business every single month. What I want to do is shine a light on how payments really work, why they matter far more than most realise, and how with a bit of insight you can turn them from a background cost into a strategic advantage.
Watch the whole recording here.
I often say payments are fixed—until they’re not. They work smoothly until you suddenly see the cracks: errors in reconciliation, rising decline rates, surprise fees, or clunky customer experiences. One friend told me recently he was sitting in a food court, scanned a QR code to order lunch, and when the platform didn’t accept Apple Pay, he simply walked away. That business lost a sale, not because of the food or service, but because the payment experience failed. And it goes both ways—when you’re making payments to contractors or suppliers, the delays and fees add friction that costs you time, money, and goodwill.
The first and most obvious trap is cost. Many businesses sign up for what’s called a “blended rate” because it looks simple—one flat percentage across all card types. But behind the scenes, providers are paying very different wholesale rates depending on the card. That flat 1.8 percent might look fine until you realise you’re paying it even on transactions that could have cost you only a few cents. One client I worked with discovered a miscalculation that was costing them around $10,000 a month. That’s not just numbers on a spreadsheet—that’s an extra full-time salary disappearing every month because no one checked. And then there are chargebacks. In tighter times, customers dispute more transactions, and without the right support from your provider you can end up losing both the sale and more money defending it.
Beyond the numbers, relationships matter. Payments are not “fire and forget”—they evolve, and you need partners who move with you. I’ve seen ride share companies struggle when their pre-authorisations were constantly declined on international cards. Once they understood the root cause and shifted providers, their acceptance rates improved and revenue followed. I’ve also seen businesses locked into vendors who haven’t kept pace with new payment methods, leaving them unable to offer customers the flexibility they expect. That’s why I tell people: don’t just accept what you were given on day one. Ask questions. Test your decline rates. Explore options. It’s not about switching for the sake of it—it’s about staying in control.
Then there’s loyalty. For years we’ve been conditioned to think about points and plastic cards, but customer expectations are shifting fast. A coffee at the station in exchange for catching an earlier train is far more motivating than a dollar off your fare. Cashback works because it feels tangible—you buy a drink, tap your card, and a few dollars return instantly to your account. These things only happen if your payment systems can connect the dots. Businesses that think about loyalty as part of payments are finding new ways to influence behaviour and strengthen relationships, often at lower cost than the old points model.
Governance is where it all ties together. Once you’ve tightened costs and improved relationships, you need a rhythm to keep it optimised. That means benchmarking vendors, checking that contracted fees are still being charged correctly, and staying across industry changes.
Right now the Reserve Bank is reviewing surcharging rules, and the long-standing direct debit system will be retired by 2030. These aren’t distant policy debates—they affect how you’ll pay suppliers and collect from customers in just a few years. If you’re not preparing, you’ll be caught scrambling. And then there’s risk. In 2021, a payments provider’s terminals went down for two weeks. Imagine not being able to take payments for that long. What’s your plan B? Governance isn’t about red tape—it’s about resilience.
Whenever I work with a business, I use a simple framework. First, clarify: know exactly what you’re paying and where. Second, optimise: make the quick wins like moving off blended rates or renegotiating fees. Third, strategise: plan for the future, from loyalty schemes to reconciliation systems. Finally, govern: build the regular checks and contingency planning that stop you sliding backwards.
The results can be huge. For small businesses, trimming a rate from 1.8 to 1.4 percent adds up quickly. For larger ones, fixing errors or renegotiating terms can free up hundreds of thousands each year. Add in savings on reconciliation staff time, fewer disputes lost to chargebacks, and loyalty programs that drive repeat business, and the difference is transformative. The key is to stop assuming payments are just “the way they are” and start treating them as a lever you can actually pull.
So my challenge to you is simple. This week, ask your provider for a full fee breakdown. Compare what you think you’re paying with what’s really on the invoice. Look at your decline rates. Pick just one thing to question. Because every dollar you save is another dollar to grow, invest, or simply enjoy outside the office.
If this struck a chord, let’s grab a coffee. I’ll even buy the first round—just make sure they take Apple Pay.