People often confuse EFTPOS and POS systems. This is mainly because salespeople try to confuse the issue by claiming that EFTPOS is POS. It is not.

What is EFTPOS

The bank system links the proposed transaction from your shop to the banking system. It usually operates through a terminal that allows customers to use their cards to complete an electronic payment using debit or credit cards.

The main features of EFTPOS terminals are:

• Secure payment processing
• Support for multiple payment methods (debit, credit, contactless)
• Encryption of payment data

What is a POS System?

It is the hardware and software used to run a shop.

Key features of POS systems include:

• Sales management and transaction processing
• Inventory tracking and management
• Customer relationship management (CRM)
• Reporting and analytics

How EFTPOS and POS Work Together

In modern retail POS Systems like ours, the EFTPOS terminals are often integrated into the Point of Sale Software. Here's how they typically work together:

1. The POS system calculates the total sale amount.
2. This amount is automatically sent to the EFTPOS terminal if integrated.
3. The customer completes the payment on the EFTPOS terminal.
4. The POS system gets a response from the EFTPOS terminal that the transaction has gone through.
5. The POS System records the completed transaction.

This integration offers several benefits:

• Reduced manual data entry, minimising errors
• Faster checkout times, improving customer experience
• Simplified end-of-day reconciliation
• Real-time sales data for better business insights

Security Considerations

Both EFTPOS and POS systems must prioritise security to protect sensitive customer data. Integrating them makes them more secure.

Choosing the Right Solution for Your Business

A standalone EFTPOS terminal vs an integrated POS system

Faster

It's much faster, as the information exchange between the EFTPOS unit and the POS System is automatic.

Secure

Integrated systems mean that the merchant has an extra layer of security, as the POS Software and the EFTPOS are linked. The controls that enter the EFTPOS pass through the POS software checks first.

Fewer mistakes

People are in a hurry, and let's face it: almost everyone in retail is busy, so they make mistakes. POS Software makes fewer mistakes. For example, a person often misreads a one and a 7. Instead of $70 into the EFTPOS unit, they punch in $10. The retailer loses $60. Sometimes, this behaviour is not accidental; store attendants give discounts to relatives and friends.

Popular EFTPOS and POS Solutions in Australia

Our users can have various EFTPOS leading providers in the Australian market.

Conclusion

While EFTPOS terminals are for the payment processing only, an integrated POS system offers a comprehensive solution for managing your entire retail operation.

FAQs

Q: Can I use an EFTPOS terminal without a POS system?

A: Standalone EFTPOS terminals can process payments independently but won't offer inventory tracking or sales reporting features.

Q: How much does an integrated EFTPOS extra cost?

A: Costs vary depending on the EFTPOS providers. We do not charge for the integration.

Q: What's the difference between contactless payments via EFTPOS vs credit cards?

A: EFTPOS transactions through savings/cheque accounts usually have lower fees than credit card transactions processed via Visa or Mastercard networks.

Q: Are there any security risks in integrating EFTPOS with POS systems?

A: Overall integration will enhance security by reducing manual data entry; however, some intelligence is still needed to reduce the risks.

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

Since October 1, the federal government declared that it would increase its recovery loan plan for businesses. This scheme is to enable lenders to give more business owners financing. 

What the government will guarantee 80% of the loan up to $5 million with a limited or flexible interest rate. This is for a maximum term of 10 years. I know most of us want longer, but that is what they are giving.

Since then, we have been thinking of refinancing as interest rates are expected to go up, so it would be great if we could get it fixed. Plus like many of us, we have our pet projects to expand our businesses as the restrictions are being lifted. For example, I am keen to expand our cheap hardware sale with some large purchases. We are known for being cheap in hardware, and I would like to build on that with some large purchases. Let me know if you are interested in a group buy.

The other problem is the current supply chain interruptions because of this we all need more buffer stock. This will result in more inflation. Those of you that can remember the 70s will know how worrying inflation can be. 

Since it looks like a good offer by the government, I decided to tell my readers here. 

There are some conditions which I doubt would be a problem with many of our readers. 

-Have an annual turnover of fewer than 250 million dollars
-Have received payments from JobKeeper between January 4 and March 28, 2021, or been financially affected by COVID-19

Be warned with the banks, it's always the same story. The loan officer wants to get your business but on top of that character is someone whose task is to ensure no loan goes ahead. Currently, the difficulty with the banks is not security, but you have to show your capacity to repay the money. How do you do that with our last few years with COVID? If your business is up, the bank said it's because of COVID, and they expect it to come down. If it has gone down, well, these are figures they use. 

For more information, including how to apply, visit the Australian Government website here.