What is EFTPOS?

July 5, 2023

EFTPOS is an acronym that stands for Electronic Funds Transfer at Point of Sale. EFTPOS is a convenient payment technology that accepts payments from debit and credit cards and nowadays, extends to digital payments from mobile phones, smart watches and the like. When a customer is purchasing a good or service and they choose to pay via EFTPOS, funds are transferred from the customers’ bank account to the merchant’s.

What’s the difference between EFTPOS and eftpos?

Upon first glance, you might think that EFTPOS and eftpos are the same word but with the capitalisation of a few letters, the words begin to take on a different meaning. As mentioned, EFTPOS is an acronym for the commonly used payment technology that allows us to make payment via card and terminal. eftpos (in all lowercase), is a private financial technology company that was established in 1984 and acts as Australia’s local debit card network. While eftpos is a private entity, the company very much embodies the meaning of EFTPOS, providing secure, easy and speedy transactions to customers via card payments. If you look at your debit, you are likely to see a little eftpos logo on there, in addition to a Visa or Mastercard symbol. While EFTPOS is a universal term, eftpos cards are generally only accepted in and around Australia.

How does EFTPOS work in Australia?

EFTPOS technology is used for all card and digital payments – if you have ever gotten cash out or purchased something using your card, you have used EFTPOS. EFTPOS is basically the technology that allows for the transfer of funds when a customer taps or swipes their card or digital wallet. Once the funds leave the customer’s account, they sit in the acquiring bank account until the funds are approved and the merchant settles their terminals, after which they will land into the merchant account.


Funds will be processed in different ways depending on what kind of account the customer uses. For example, if using a debit card, the transaction may travel through eftpos (the Aussie network we mentioned earlier) and if using credit, payment might travel through a payment scheme like Visa or Amex.


EFTPOS provides mutual advantages for both customers and merchants. Customers can enjoy the ease and speed of making payments, while merchants can securely and conveniently receive funds directly into their accounts. All transactions made via EFTPOS are tracked electronically, meaning there is a record of each and every purchase which can be beneficial once tax time rolls around. It is important to note that accepting EFTPOS transactions does come at a cost for merchants, with varied amounts owing to the payment processors.

What is an EFTPOS transaction?

An EFTPOS transaction refers to any transaction where a customer uses their card or digital wallet to make payment at the point of sale via a payments terminal. The technology allows for a customer’s money to be transferred to a business’ banking account during a transaction, which eliminates the need for physical cash.

How long do EFTPOS transactions take?

EFTPOS transactions are processed immediately – when a customer taps or swipes their card (and enters their pin for payments over $200), funds are swiftly transferred out of their account to the merchant’s. Once the funds are approved but before they land in the merchant’s account, merchants need to settle their EFTPOS terminal/s, which signals the EFTPOS network to move the funds from the acquiring bank to the merchant’s bank. Funds are generally deposited into the nominated bank account the next business day but this will vary depending on the bank you are with.

What is an EFTPOS machine?

An EFTPOS machine is the terminal that processes card and digital payments by facilitating the electronic transfer of funds at the point of sale. In recent years, the significance of EFTPOS machines has rapidly grown as an increasing number of customers opt for card or digital payments over cash. No doubt the contactless measures that were put in place during the Covid-19 pandemic had an impact on the way consumers engage with businesses, resulting in a preference for cashless payments and online shopping. This change in consumer behavior has forced numerous business owners to make the crucial investment in an EFTPOS terminal to stay competitive. Therefore, it is not surprising that some employees are caught off guard when a customer attempts to pay with cash after they have already prepared the EFTPOS machine for card payment. Nowadays, it has become very uncommon for the ‘average’ customer to choose cash as their preferred payment method, except in the rare case of going into a “cash only” business – which is also becoming increasingly scarce.

What are the benefits of EFTPOS?

  • When you have an EFTPOS machine at your business, it ensures you can accept payments in all forms – from traditional cash payments to card and digital payments;
  • Accepting EFTPOS payments provides you with quicker access to your funds, as electronic funds can often be settled directly to your nominated bank account in a matter of days;
  • Taking EFTPOS payments increases the security of your business as you don’t need to store or carry large amounts of cash around;
  • When you take an EFTPOS payment, you are provided with a record of the transaction, simplifying the monitoring of all purchases, refunds, exchanges and more.

So why go with Pago EFTPOS?

Going beyond the standard benefits that an EFTPOS terminal can provide, we have designed Pago with a range of features that will help your business thrive while reducing your operating costs. With the latest EFTPOS technology at your fingertips, Pago ensures your business receives the most up-to-date software, functions and features…leaving no business behind in the EFTPOS payments space.

To learn more about why Pago could be the perfect fit for your business, enquire now. 

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