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22 January 2008

Make business easier – use your money

In an Australian first for business banking, Westpac has launched a Business Debit MasterCard that will allow businesses to transact straight from their business accounts.

Peter Hanlon, Westpac Business Financial Services Group Executive, said the new debit card would help businesses better manage their cash flow by changing their banking behaviour.

"Business can use the debit card for transactions over the phone and internet and anywhere MasterCard is accepted using the available funds in their account," he said.

"We think the new card has the potential to change the way small businesses transact, in particular replacing cash and cheques. This is certainly the overseas experience, where in the US, usage of the debit card has increased from 2% to 20% by 2004.

"Small and medium businesses tell us that one of the major issues they face is managing cash flow. They also find red tape and administrative tasks a drag on their time, so the debit card will make business easier for them."

"Not only will the debit card reduce reliance on debt – and that makes good business sense – it will also help businesses to manage cash flow.

According to MasterCard Worldwide's Leigh Clapham, executive vice president, Australasia, "Australian small and medium-sized businesses (SMEs) understand that it's critically important to manage their spending effectively and reconcile every transaction back to the individual cardholders.

The new Westpac Business Debit MasterCard card will allow Australian SMEs to manage their company's cash flow better and also enable them to benefit from the convenience of using their debit card at over 25 million acceptance locations worldwide."

Westpac is unique in offering the small business market an "all in one" account – a transaction account with an optional overdraft and debit card access. Customers can perform phone and online transaction on the same account they use to write cheques or draw on their overdraft.

With the Westpac Business Debit MasterCard linked to their business account, owners and managers can access a complete cash flow report for their business each month. Record keeping is clear and simple with one statement to show all account transactions.

The Westpac Business Debit MasterCard comes with the options of full or limited access card suitable for employees of the business and allows for up to 12 cards per account.

Westpac can link most Westpac business accounts to the card, including Westpac Business One, Westpac Business Flexi and the Westpac Community Solutions Account.

There is an annual fee of $30 per year for up to 12 cards per business account. This annual fee is waived in the first year. Westpac will continue to offer the Business Handycard to those customers who do not meet the eligibility criteria for the Westpac Business Debit MasterCard.