Key Features
- Automatic Debiting: Directly debits the amount from the customer’s bank or credit card.
- Authentication: PIN or contactless authentication ensures secure transactions.
- Cashback Facility: Allows customers to withdraw cash during a purchase transaction.
Working Mechanism
EFTPOS systems operate through a network of interconnected entities. Here’s a simplified flowchart of an EFTPOS transaction:
Examples
- Retail Stores: Major supermarket chains implement EFTPOS to handle large volumes of transactions efficiently.
- Restaurants: Many food establishments use mobile EFTPOS devices for table-side payments.
- Service Providers: Utility companies and other service-based industries use EFTPOS for recurring payments.
- NFC (Near Field Communication): A technology enabling short-range wireless communication for contactless payments.
- Chip and PIN: A security protocol requiring a PIN to authenticate card transactions.
- EMV (Europay, MasterCard, and Visa): A global standard for inter-operation of integrated circuit cards (IC cards or “chip cards”).
FAQs
Q: What are the benefits of using EFTPOS over cash transactions?
A: EFTPOS transactions are faster, more secure, and reduce the need for cash handling.
Q: Can I use EFTPOS internationally?
A: Yes, EFTPOS systems are widely accepted globally, but ensure your card is enabled for international transactions.