ELECTRONIC FUNDS TRANSFER AT POINT-OF-SALE

(EFT-POS)

Definition
 Electronic funds transfer at point- of- sale (EFT-POS) is a online- transaction handling
system commonly used in retail trade. This EFT-POS used at retail outlets or
supermarkets where Point of Sales Terminals are located.
 Buyers uses a plastic cards, including ATM cards and credit cards to make payments.
 The buyer swipes his or her bank or credit card through a magnetic-stripe reader and
enters a personal identification number (PIN). The amount authorized by the buyer is
electronically transferred from his or her account to that of the retailer.
Advantage of EFT-POS
 Payment guaranteed to shop is guaranteed.
 Less paperwork for the shop to processes, example no cheques or cash to pay- in
their banks.
 Improved security because less cash in held in the stores.

Disadvantage of EFT-POS
 The systems are expensive to install.
 System failures (part or whole) cause major problems.
 Card fraud has become a major problem for customers.
Advantage to customer using EFT-POS
 Convenient and greater speed in transaction
 Reduced transaction cost
Advantage to business using the EFT-POS
 Speed in transaction
 Lower transaction cost charge by bank to retailer
 Reduction in administrative cost
 Reduction in bad debts
EFT-POS PAYMENT
- Electronic funds transfer at the point of sale (EFT-POS) is a payment system that lets
your customers pay directly into your bank account using an EFT-POS machine using
a plastic cards, such as bankcard, credit card or debit card.

BENEFITS EFT-POS PAYMENTS

Lower labor costs than cash- EFTPOS payments go directly into your account, so there
are lower labor costs since people don’t have to handle money or record cash receipt.
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 progress.
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.
DISADVANTAGE EFT-POS PAYMENTS

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.
Technical problems- EFTPOS machines can malfunction

PROCESSING EFTPOS PAYMENTS

1. Shop around for the best EFTPOS provider for your business. It is a good idea to think
about what EFTPOS machines cost and have 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 finalizing the sale.
4. After a customer offers to buy goods or services, let your customers know how much the
goods and services cost.
5. Fellow your instructions for our 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 Pay Pass and visa’s Pay
wave.
6. Provider your customers with a receipt and a GST tax invoice if they request one. If GST
applies, you must provider a GST tax invoice within 28 days if your customer requests
one.
PICTURE