EFTPOS, short for Electronic Funds Transfer at Point of Sale, is the system that lets customers pay for goods by debit card at a terminal. In Australia the term is widely used to describe card payments generally, and also refers to the domestic eftpos debit scheme.
When a customer presents a card, the terminal reads it by chip, tap or, less commonly, swipe, and asks for a PIN where required. The terminal sends the transaction through the acquiring bank or payment provider to the card scheme and the customer's bank for approval. A response comes back within seconds, and the funds are later settled into the merchant's account.
Businesses use EFTPOS for in-person payments because it is fast, familiar and reduces handling of cash. Terminals can be standalone or integrated with the POS so the amount is passed automatically, which cuts keying mistakes and speeds up reconciliation.
Retailers should compare merchant fees, settlement times, terminal rental or purchase costs and support arrangements, as these vary between providers. Also confirm that the terminal supports contactless, works with your POS and has a backup plan, such as a mobile data connection, if the main internet link fails.
EFTPOS matters because most Australian customers expect to pay by card, and a payment outage can stop trade entirely. RetailCare offers payment solutions through RetailCarePAY and can help match terminals to the POS being used in store.