Global hospitality platform RMS has announced a strategic partnership with bank payment specialist GoCardless to address rising operational costs and regulatory pressures. The collaboration integrates direct bank payment solutions into the RMS platform, offering accommodation providers a lower-cost alternative to traditional card networks. This initiative is designed to help operators protect their profit margins ahead of Australia's planned ban on card surcharges.
Navigating Impending Regulatory Changes
The Reserve Bank of Australia is set to prohibit credit and debit card surcharges, with new legislation expected to take effect later this year. This change means businesses that previously passed processing fees to customers will now have to absorb these costs. The reform is a significant development for the hospitality industry, which relies heavily on card transactions.
Card processing fees currently cost Australian merchants between 1% and 3% per transaction, a substantial operational expense. For a mid-sized hotel processing $500,000 in annual card payments, this could translate to an additional $5,000 to $15,000 in annual costs. The partnership aims to mitigate this financial impact by providing a more economical payment infrastructure.
A Strategic Shift in Payment Processing
The integration enables operators to accept direct bank payments, including direct debit and real-time payments, alongside cards within a single system. This gives businesses greater flexibility in how they collect revenue for deposits, installments, and longer stays. The move reflects a broader trend of payments becoming a key strategic decision for businesses.
Adam Seskis, CEO at RMS, stated that as costs rise, the way businesses collect payments is becoming a critical choice. He noted that this integration provides hospitality teams with more control, helping them lower expenses and create a more reliable approach to revenue collection. This modernization is essential as the financial landscape continues to shift for operators.
Ian Boyd, General Manager for Australia and New Zealand at GoCardless, emphasized that the surcharge ban will fundamentally change how the industry approaches payments. He advised that operators who diversify their payment mix now will be better positioned for the future. Direct bank payments offer a more predictable and lower-cost method, especially for recurring charges.
Addressing Cash Flow and Payment Failures
This partnership also comes as Australian small businesses face increasing cash flow challenges and the administrative burden of chasing late payments. Failed transactions represent a hidden drain on both revenue and team productivity in the hospitality sector. The new system is designed to directly address these persistent operational pain points for businesses.
A key feature of the integration is an intelligent payment recovery tool that automatically retries failed payments at optimal times. According to GoCardless data, this technology, known as Success+, recovers over 70% of payments that would otherwise fail. This automated process helps secure revenue that might typically go unrecovered using traditional methods.
In conclusion, the collaboration between RMS and GoCardless offers a timely and proactive solution for the accommodation industry. By providing a more cost-effective and reliable payment system, the partnership equips operators to better manage their margins and improve cash flow. This strategic move positions hospitality businesses to successfully navigate the upcoming regulatory changes and enhance their financial stability.