What is EFTPOS?

Understanding EFTPOS

EFTPOS stands for Electronic Funds Transfer at Point of Sale. It’s the electronic payment system that lets your customers make purchases using a debit card, credit card or mobile wallet - on their phone or a wearable device like a smartwatch. 

In Australia, eftpos gives your customers three account options at checkout: Cheque (CHQ), Savings (SAV) and Credit (CR).

• CHQ and SAV are linked directly to your customers’ bank accounts and processed through the EFTPOS network.
• The CR option routes transactions through a credit card network such as Visa or Mastercard.

How does EFTPOS work?  

EFTPOS works by connecting a payment device, like an EFTPOS machine or terminal, to a bank network to securely transfer funds from the customer to your business account.

When a customer presents their card or device, they choose their preferred payment type. The transaction is then processed electronically, transferring the appropriate amount to your nominated business bank account.

Funds typically settle within one or two business days, though NAB offers same-day settlement if you settle to a NAB business account before 9:30pm AEST.

Eftpos vs. Visa: what’s the difference?

While eftpos and Visa both enable card-based payments, they operate on different networks and offer distinct benefits.

Eftpos

Using CHQ or SAV generally draws funds from a customer’s cheque or savings account and processes them through a domestic network. It’s often used for everyday purchases.

Visa

Accessed when the CR option is selected, it routes transactions through a credit network like Visa or Mastercard. Visa payments may offer customers additional features like purchase protection, points earning and delayed settlement.

Understanding these differences is key when managing transaction fees, settlement times and customer preferences.

Eftpos vs other payment methods

When selecting the right payment solution for your business, it’s worth comparing eftpos with other alternatives.

• Cash – no transaction fees, but higher risk and administrative effort.
• Bank transfers – suitable for B2B but not ideal for in-person retail.
• Buy Now Pay Later (BNPL) – popular with younger consumers but often comes with higher merchant fees.
• Online payment gateways – essential for eCommerce business operations but generally not a replacement for in-person POS.

EFTPOS can help bridge security, convenience and flexibility – especially if your business is on-the-go.

What is an EFTPOS machine?

An EFTPOS machine is a payment terminal provided by a bank or financial institution that enables your business to access the eftpos network. These terminals can be standalone, like the QT850 terminal, or integrated with a Point of Sale (POS) system like the Ingenico Move/5000.

Today’s EFTPOS machines go far beyond the shop counter. With mobile and portable options, businesses can accept secure, real-time payments from anywhere. This is ideal for tradies, delivery drivers, market stalls, pop-up shops and many other types of small businesses.

Advantages of EFTPOS machines for businesses

Convenient, secure and fast payments

EFTPOS machines eliminate the need to handle cash and provide immediate transaction records. The entire payment process is simplified with funds arriving into your business bank account. Each transaction through an EFTPOS machine is logged, giving your business a clear view of takings while making it easier to plan and budget.

Accept a wide range of payments

Whether it’s Visa, Mastercard, eftpos, Apple Pay, Google Pay, Samsung Pay or American Express, modern EFTPOS terminals can handle it all, offering your customers a smoother checkout experience.

Take payments anywhere with mobile EFTPOS

Portable EFTPOS terminals can be a great solution for businesses on the move – ideal for food trucks, mobile services, event vendors or any business that doesn’t operate from a fixed location. 

For example, NAB Easy Tap is an app-based payment service that doesn’t require any additional hardware. You can use your Android device to help you manage fast, secure and simple payments anywhere.

What to consider when choosing an EFTPOS machine

• What is the size of your business and how do your customers prefer to pay?
• Do you need an on-the-go solution or a countertop terminal?
• Are there any POS integration requirements?
• Are there any fees and charges for transactions, machine rental, POS integration or setup?
• Will your staff require terminal usability training?
• What is the battery life and portability?
• What are the settlement timeframes?

Start accepting payments the smart way

Make it easy for your customers to pay – anywhere, anytime.

Whether you’re looking for a portable solution for on-the-go-sales, or a countertop terminal with POS integration, NAB offers a range of EFTPOS solutions to help your business thrive.

• Explore NAB EFTPOS terminals
• Discover NAB Easy Tap
• Speak with a business banking specialist