Intro
EFTPOS stands for Electronic Funds Transfer at Point of Sale. It’s a system that allows businesses to accept debit and credit card payments from customers, making transactions faster, safer, and more convenient than cash handling.
Main Definition
EFTPOS is a payment method used to electronically transfer funds from the customer’s bank account to a merchant’s bank account. It requires a card reader — typically an EFTPOS terminal — and a network connection to a payment gateway. EFTPOS is essential for modern businesses, from retail stores to taxis, as it reduces the need for physical cash and enables secure transactions. While it’s often confused with a credit card machine, EFTPOS refers specifically to the fund transfer process — not the hardware itself.
Examples
A taxi driver uses a mobile EFTPOS terminal to process card payments from passengers.
A restaurant uses portable EFTPOS machines to accept contactless payments at the table.
A retail store integrates their POS with EFTPOS to speed up checkout and minimise errors.
Key Relationships
Cash Flow: EFTPOS speeds up access to customer payments, supporting daily liquidity.
Transaction Fees: Each EFTPOS payment typically incurs a processing fee, which varies by provider.
Contactless Payments: Most modern EFTPOS systems support tap-and-go payments via cards or phones.
Merchant Accounts: To receive EFTPOS payments, businesses must register with a provider and obtain a merchant ID.
Compliance: EFTPOS providers must meet industry security standards to protect cardholder data.
Frequently Asked Questions
What are the costs associated with using EFTPOS?
Businesses usually pay a small fee per transaction, which may be a fixed amount or a percentage of the sale.Can EFTPOS be used for online transactions?
EFTPOS is mainly used for in-person payments, but some providers integrate it with e-commerce platforms for online sales.Is EFTPOS secure?
Yes — modern EFTPOS systems are PCI compliant and use encryption to protect customer data.
