EFTPOS - definition & overview
Contents
What does EFTPOS stand for?
EFTPOS (Electronic Funds Transfer at Point of Sale) is a widely used electronic payment system allowing customers to pay for purchases directly at your business using their debit, credit, or prepaid cards (availability depends on your provider).
It offers a secure, swift, and convenient alternative to cash transactions, streamlining the process for you and your customers.
Key Points for Australian Small Businesses:
Benefits
- Faster transactions: Reduce checkout times significantly compared to cash.
- Enhanced security: With money flowing into your bank accounts you minimise the risk of cash handling and potential theft.
- Improved cash flow: Funds are transferred electronically, simplifying record-keeping and reconciliation.
- Broader customer reach: Cater to a wider customer base who prefer card payments.
- Equipment:
- EFTPOS terminal: A secure device that connects to your bank and processes card payments.
- Merchant service provider (MSP): The company that supplies your EFTPOS terminal, manages your account and handles transaction settlements.
Costs
- Terminal rental fees: Monthly or fixed cost for using the EFTPOS terminal.
- Transaction fees: Charged per EFTPOS transaction, may vary depending on the MSP, card type, and transaction amount.
- Optional monthly fees: Some MSPs may have additional account maintenance fees.
- Important Considerations:
- Compare plans and fees: Research different MSPs to find the most cost-effective and feature-rich option that aligns with your business volume and needs.
- Terminal functionality: Ensure your EFTPOS terminal offers the required features, such as contactless payments or integration with your point-of-sale system.
- Internet connectivity: Consider if your terminal requires a stable internet connection for all functionalities.
Note: The availability of EFTPOS functionality for prepaid cards and savings accounts may vary depending on the financial institution and EFTPOS network.
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