You walk into your local Woolies, pick your favourite flavour of Smiths, scan, press your phone against that tiny little blue screen, and simply walk away. Never realising that without that tiny little machine, you would be stuck waiting as the attendant counts your cash or verifies your check. Never realising how convenient it is to just tap and go about your life with such ease.
EFTPOS is ubiquitous with retail, offering customers convenience and the ability to make secure payments with a single swipe or a tap. Helping customers and businesses to streamline both payments and payment processing through a single machine.
If you’re looking towards integrating an ERP solution like Triumph ERP with your business, especially as a retailer, understanding EFTPOS is essential when deciding to take your business towards the next step in digital transformation.
What is EFTPOS?
EFTPOS stands for Electronic Funds Transfer at Point of Sale. It refers to a payment system that allows your customers to pay for goods and services using debit or credit cards at electronic terminals.
When your customer makes a purchase, the EFTPOS system electronically transfers funds from the customer’s bank account to the merchant’s account.
In Australia, eftpos (in lowercase instead of EFTPOS) is also the name of a domestic debit card payment system. While the term EFTPOS is used globally to describe the technology, eftpos is connected to Australia’s national debit card network.
How Does EFTPOS Work?
The EFTPOS process involves 4 Key Steps
1. Initiation
The customer presents their card and either swipes, inserts, or taps it on the EFTPOS terminal.
2. Authorisation
The terminal communicates with the acquiring bank to request authorization. The acquiring bank then contacts the issuing bank to verify the transaction details and ensure sufficient funds are available.
3. Approval
If the transaction is approved, a hold is placed on the customer’s account for the transaction amount.
4. Settlement
The funds are transferred from the customer’s bank to the merchant’s bank account, completing the transaction.
This entire process occurs in real-time, typically within seconds, providing a quick and efficient payment experience for both customers and merchants.
EFTPOS within the Australian Banking Context
Within the Australian banking system, EFTPOS plays a significant role in facilitating electronic payments. The eftpos network is a domestic debit card system that allows consumers to make payments directly from their bank accounts. It is widely accepted across various retail outlets and is known for its cost-effectiveness for merchants compared to international card schemes.
For businesses, integrating EFTPOS with banking services ensures secure and efficient transaction processing. Banks provide EFTPOS terminals and merchant services that enable businesses to accept card payments seamlessly.
How to Pay with EFTPOS
Paying with EFTPOS is straightforward:
1. Card Presentation
The customer presents their debit or credit card.
2. Terminal Interaction
The card is swiped, inserted, or tapped on the EFTPOS terminal.
3. Account Selection
The customer selects the account type (cheque, savings, or credit).
4. PIN Entry
The customer enters their Personal Identification Number (PIN) to authorize the transaction.
5. Transaction Completion
The terminal processes the payment, and a receipt is generated upon approval.
Modern EFTPOS terminals also support contactless payments, allowing customers to tap their cards or mobile devices for transactions below a certain threshold without entering a PIN.
Integrating EFTPOS with Triumph ERP
For businesses using Triumph ERP, integrating EFTPOS functionality can significantly enhance operational efficiency. Triumph ERP is a comprehensive enterprise resource planning system designed for Australian businesses, offering modules that cover various aspects of business operations.
By integrating EFTPOS with Triumph ERP, businesses can:
- Streamline Sales Processes: Automatically record EFTPOS transactions within the ERP system, reducing manual data entry and errors
- Improve Cash Flow Management: Gain real-time insights into sales and payments, aiding in better financial planning and decision making.
- Enhance Customer Experience: Provide faster and more convenient payment options, leading to increased customer satisfaction.
- Triumph ERP’s flexibility allows for customisation and integration with various EFTPOS providers ensuring that businesses can tailor the system to their specific needs.
Del Basso Small Goods
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