EFTPOS allows retailers to directly debit a customer’s bank account using a debit card, providing benefits such as instant payment and convenience for both parties. It is popular in several countries and has various manufacturers such as Ingenico and Verifone.
EFTPOS, Electronic Funds Transfer Point of Sale, refers to the technology that allows a retailer to directly debit a customer’s bank account using a debit card. The debit card, generally the same as an ATM card, is swiped through a reader device just like a credit card. The customer must enter their PIN, usually required once the sale amount has been entered into the EFTPOS device.
There are many benefits to using an EFTPOS for both the reseller and the customer. The retailer is paid “instantly” without having to accept actual cash. While cash is certainly preferable to credit cards with surcharges or personal checks that can bounce, there are many security responsibilities surrounding handling large amounts of cash. Cash must be manually counted by the teller at the POS, counted again when the register is balanced, and finally picked up by a gun service or personally deposited. With EFTPOS, money is transferred directly to the retailer’s bank account as soon as the transaction clears, bypassing those liabilities and saving manual resources.
The customer also comes out on top using EFTPOS, due to its remarkable convenience. A shopper doesn’t need to have cash on hand, credit cards, or a checkbook to make a purchase. This is especially convenient for unplanned or impulsive purchases. The customer can also recover money from the transaction, another convenience. Additionally, if an item needs to be returned to the store, an EFTPOS sale can allow the customer an immediate cash refund, despite the store’s policy. Contrast this with personal checks which require a customer to wait two weeks or more before a cash refund can be offered. Finally, EFTPOS saves the consumer money by saving personal checks and ATM fees for cash withdrawals.
EFTPOS is extremely popular in the US, UK, Germany, Australia, New Zealand and Canada. Some EFTPOS system manufacturers include: EFTPOS, Ingenico, Axalto, Sagem, Thales, Trintech, Verifone and Hypercom.
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