EFTPOS payment processing can be a complex and time-consuming task for businesses, but it doesn't have to be.
EFTPOS is a widely accepted payment method in Australia, with over 95% of merchants accepting it.
For businesses, EFTPOS payment processing can be simplified by choosing the right payment terminal. With a variety of options available, including mobile EFTPOS terminals, businesses can select the one that best suits their needs.
EFTPOS payment processing fees can be as low as 0.5% + 10 cents per transaction for low-risk businesses.
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Payment Processing
Payment processing is a crucial aspect of accepting EFTPOS payments. You can receive EFTPOS payments instantly with Westpac EFTPOS machines, which transfer daily takings into your business account immediately after settlement.
Some EFTPOS systems take a number of days to transfer payments, so it's essential to check the transfer time with your chosen provider. This is a good idea when choosing an EFTPOS system for your business.
If you're looking for a flexible payment option, consider using EFTPOS Air, an app that can be downloaded onto your compatible smartphone. This allows you to accept EFTPOS payments anywhere you trade, as long as you have a signal.
EFTPOS Air also includes optional POS features, such as building a menu of products and services, for faster transactions. This makes it a great option for mobile businesses and side hustles.
To accept EFTPOS payments, you'll need a merchant account, a payment gateway, and an EFTPOS machine. Once you have these set up, you can start taking card payments within seconds.
If you run into any problems, don't worry – merchant account providers often offer support, including 24/7 assistance. This means you can get help whenever you need it.
Here are some common EFTPOS fees to be aware of:
To accept EFTPOS payments, you'll need to sign a contract with an EFTPOS-approved merchant service provider, such as Australia and New Zealand Banking Group, Commonwealth Bank of Australia, or Westpac Banking Corporation. Certain payment providers, like Square and Mint Payments, also offer EFTPOS acceptance as part of their packages.
Types of Terminals and Equipment
There are different types of EFTPOS terminals available, including standalone terminals and POS-integrated systems.
A standalone terminal allows you to key in the amount, while a POS-integrated system calculates the sales amount and transmits it to the terminal, reducing calculation and keying-in errors.
Westpac EFTPOS Connect machines offer POS integration, while EFTPOS Now provides a flexible, standalone machine that can be upgraded with POS integration as an optional extra.
EFTPOS machines can be mobile, portable, or countertop, and it's essential to choose one that suits your specific business needs, such as a mobile food vendor.
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Types of Terminals
There are different types of EFTPOS terminals available, including standalone terminals and POS-integrated systems. Standalone terminals require you to key in the amount, while POS-integrated systems calculate the sales amount automatically.
Westpac EFTPOS Connect machines offer POS integration, which can be a convenient option. EFTPOS Now machines, on the other hand, offer the flexibility to choose between a standalone machine and a POS-integrated system.
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You can also consider a terminal that connects with a point of sale (POS) system, which can help avoid calculation and keying-in errors. This type of system is a great option for businesses that need to process multiple transactions quickly and accurately.
Ultimately, the type of terminal you choose will depend on your business's specific needs and requirements.
Still Dominant, But Lagging
The Australian payment system is still dominant, but it's lagging in one area: allowing online purchases more broadly. This is a challenge it needs to address to remain relevant.
With Visa and Mastercard debit available from almost every card provider, it might be fighting a losing battle to stay on top.
Mobile and Online Payments
EFTPOS Air is an innovative app that lets you take card payments on your mobile. You can download it onto your compatible smartphone and use it as a traditional EFTPOS terminal.
Your customers can tap to pay for goods and services, and their payment will be deposited into your account the same day. This flexibility is perfect for mobile businesses and side hustles.
With EFTPOS Air, you can use it as your main payment system or as a backup for busy times. It works anywhere you can get a signal, making it great for businesses on-the-go.
You can also use a virtual terminal to take orders and card payments over the phone, which is ideal for takeaway delivery services. This secure web page interface allows you to input card numbers provided by customers.
EFTPOS has its own Tap & Pay technology, allowing users to make quick and simple transactions when spending under $200. Higher amounts require a PIN, but this convenience is a game-changer for many customers.
Mobile wallets like Apple Pay, Google Pay, and Samsung Pay are also compatible with EFTPOS, making it even easier for customers to pay on the go.
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Choosing a System and Providers
To choose an EFTPOS system, you need to think about where and how you want to take EFTPOS payments. This includes considering the card types you want to accept, terminal fees, and transaction rates.
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You should also think about the speed of settlement into your account and whether you want point of sale integration. Scalability of your EFTPOS system is also important.
A good starting point could be a chat with a payments specialist to help cut through the confusion of options. You can call Westpac on 1800 029 749 or request a callback.
To find the right EFTPOS providers, look for ones that offer hardware that fits your business needs and charge fees aligned with your budget and monthly sales volume.
Here are some top EFTPOS providers to consider:
You can check out our guide to the best EFTPOS machines to learn more about these devices and pick the one most suited to your business.
How it Works and Transactions
EFTPOS transactions are processed through a network of seven proprietary Australian banks, including Westpac, Commonwealth Bank, and National Australia Bank.
Almost all debit cards issued in Australia can process transactions via EFTPOS, making it a widely accepted payment method. These are known as dual-network cards because they support international schemes like Visa or Mastercard as well as the Australian EFTPOS system.
Australians have three payment options at the point of sale: 'Cheque', 'Savings', and 'Credit'. 'Credit' runs the transaction across the Visa or Mastercard network, depending on the card type.
To initiate an EFTPOS transaction, an interconnected EFTPOS machine is used, linking multiple networks to facilitate a successful payment. This involves the buyer's bank, the merchant's bank, the EFTPOS machine provider, and point-of-sale technology.
Funds are transferred from a customer's account directly into your business account through EFTPOS. The EFTPOS provider sends a request to the bank account of the person making a payment to make sure the funds are available.
EFTPOS transactions use encrypted data, which helps both businesses and customers transact with peace of mind. This process is designed to guarantee the secure and expeditious completion of transactions.
Settlement times may exhibit variability, potentially influencing business cash flow. However, the overall procedure is characterized by its streamlined and user-friendly nature, making EFTPOS transactions a secure and efficient means of processing payments.
Shoppers can also use EFTPOS to withdraw cash from any merchant accepting card payments, making life easier if an ATM isn't close by. Merchants often set a minimum purchase amount of $5 or $10 if shoppers want to withdraw cash.
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Merchant Fees and Costs
Merchant fees can be a significant cost for businesses that accept EFTPOS payments. Merchant fees differ depending on factors such as the type of card used, the EFTPOS service provider, and the card network.
To give you a better idea, here are some average price ranges for different types of fees: CostPayment frequencyAverage price rangeIn-person transaction feesPer payment0.75%-1.75%Online transaction feesPer payment0.75%-2.2%EFTPOS terminal costsUpfront or monthlyUpfront: $65-$89 / Monthly: $0-$20Account feesMonthly$20-$42Virtual terminal costsMonthly$10-$20
By understanding these fees, you can factor them into your pricing and make informed decisions about your business.
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Merchant Fees
Merchant fees can add up quickly, but understanding how they work can help you minimize their impact on your business. Merchant fees differ depending on factors such as the type of card used, the EFTPOS service provider, and the card network.
You can factor in merchant fees when pricing your products and services by understanding which cards are commonly used and typical transaction fees. This will help you estimate the merchant costs you're likely to incur and determine what you'll charge.
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Merchant fees can range from 0.75% to 2.2% per payment, depending on whether the transaction is in-person or online. In-person transaction fees typically fall between 0.75% and 1.75%, while online transaction fees can be as high as 2.2%.
To minimize merchant fees, consider using least-cost routing, which automatically defaults to the cheapest available network when a buyer taps their card on an EFTPOS machine. You can also find a merchant fee pricing model that suits your business best by doing your research and comparing different providers.
Here's a breakdown of the average price range for different types of merchant fees:
By understanding how merchant fees work and taking steps to minimize them, you can save money and increase your profit margins.
Zero-Cost Possibility
You can get zero-cost EFTPOS, but it's not a common offer in the market. With Smartpay's Zero-Cost EFTPOS plan, account fees, transaction fees, and EFTPOS machine costs are waived.
Businesses with a monthly turnover of $10,000 or more are eligible for this plan, which can exclude many ventures just starting out.
Frequently Asked Questions
What is EFTPOS called in America?
In the United States, the EFTPOS system is known as Interlink. This brand name is used for facilitating electronic payments across the country.
What is the difference between an EFTPOS and a debit card?
EFTPOS cards are a domestic system used primarily in Australia and New Zealand, while debit cards use an international network, making them widely accepted worldwide. This key difference affects where you can use each type of card.
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