Intro
EFTPOS stands for Electronic Funds Transfer at Point of Sale. It's a system that allows businesses to accept card payments from customers, making transactions quick and convenient.
Main Definition
EFTPOS is a technology used by businesses to process payments made with debit or credit cards at the point of sale. It involves the electronic transfer of funds from the customer's bank account to the business's account. This system is crucial for businesses as it provides a secure and efficient way to handle transactions, reducing the need for cash handling. A common misunderstanding is that EFTPOS is the same as a credit card machine, but it specifically refers to the electronic transfer process.
Examples
- A retail store uses an EFTPOS terminal to accept payments from customers using their debit cards.
- A taxi driver uses a mobile EFTPOS device to process credit card payments from passengers.
- Restaurants often use portable EFTPOS machines to allow customers to pay at their table.
Key Relationships
EFTPOS is closely related to cash flow, as it directly impacts how quickly a business can access funds from sales. It also ties into expenses, as businesses may incur fees for using EFTPOS services. Additionally, EFTPOS is relevant to tax and compliance, as it provides a record of transactions that can be used for financial reporting and tax purposes.
Frequently Asked Questions
1. What are the costs associated with using EFTPOS?
Businesses typically pay transaction fees for each EFTPOS payment processed, which can vary depending on the provider.
2. Can EFTPOS be used for online transactions?
EFTPOS is primarily used for in-person transactions, but some systems integrate with online payment gateways for e-commerce.
3. Is EFTPOS secure?
Yes, EFTPOS systems are designed with security features to protect both the business and the customer during transactions.
