Electronic funds transfer at the point of sale (EFTPOS) is a payment system that lets your customers pay directly into your bank account using an EFTPOS machine using a plastic card, such as a bankcard, credit card or debit card.

Benefits EFTPOS payments

As well as disadvantages, EFTPOS payments have several advantages. Check out these examples:

• Lower labour costs than cash

  EFTPOS payments go directly into your account, so there are lower labour costs since people don’t have to handle money or record cash receipts.

• Low risk of theft

  Since EFTPOS payments go directly into your account, they have a lower risk of theft than cash.

• Fast transaction speed

  EFTPOS payments are fast to process.

• Proof of payment

  EFTPOS automatically creates a record of payment, which can help avoid disputes.

• Convenience

  Some customers may find EFTPOS convenient, as they don't need to carry large amount of cash.

Disadvantages EFTPOS payments

EFTPOS payments are not free and have some disadvantages over other payment methods. Consider these examples:

• Service fees

  Your financial institution often charges service fees if you want to offer EFTPOS payments.

• Transaction costs

  Your financial institution may charge you a fee per transaction.

• Lack of privacy

  EFTPOS payments automatically create a record of each transaction. Customers may prefer cash for private goods and service, such as medications.

• Reliance on electrical and mobile phone infrastructure

  EFTPOS transactions require electricity and sometimes need access to a mobile phone networks. Cash may be more reliable if these services are unreliable or unavailable.

• Technical problems

  EFTPOS machines can malfunction.

Processing EFTPOS payments

If you want to offer EFTPOS payments, check out these steps:

1. Shop around for the best EFTPOS provider for your business. It is a good idea to think about what EFTPOS machines cost and how their features may increase your sales volume.
2. Buy EFTPOS access from the best EFTPOS provider for your business.
3. Let your customers know that you offer EFTPOS. If they want to use it, they may ask to pay using it when finalising the sale.
4. After a customer offers to buy your goods or services, let your customer know how much the goods and services cost.
5. Follow the instructions for your EFTPOS machine from your EFTPOS provider. You usually need to enter the payment amount into the machine, scan a card and get your customer to type in a passcode. Newer machine and cards may let customers without typing in their passcode using technologies like Mastercard’s PayPass and Visa’s PayWave.