Preventing Fraud at Your Business

Discover how this everyday technology functions and why it’s important to choose the right hardware. You’ve tapped. You’ve swiped. You’ve been approved and declined. Your interactions with EFTPOS have been countless, and yet you may not know what’s behind this ubiquitous technology. While most people can remain happily, cashlessly oblivious, for business owners, it’s very important to know what EFTPOS transactions are, how they work, and how to select the right hardware. Read on for a breakdown of everything you need to know about EFTPOS and some handy advice for choosing a terminal. What is EFTPOS? The name EFTPOS is an acronym for Electronic Funds Transfer at Point Of Sale. Put technically, it is an electronic payment system that allows customers to make transactions by electronically transferring funds from their bank account to a merchant's business bank account . Put simply, it is any machine that accepts debit and credit card payments. In today’s age, having an EFTPOS terminal is a boon for business . It is a convenient and efficient way to accept digital transfers, with the added benefit of quick payment processing, automatic record-keeping, and reduced cash handling. The Rise of EFTPOS Introduced to the Australian market in 1984, the EFTPOS transaction system took a while to grow in popularity as business owners and consumers got used to the idea of digital payments. For context, Australians were still using cash for 90% of all transactions in 1985. It wasn’t until 2002 that the EFTPOS industry saw significant growth. At the time, EFTPOS terminals were all produced by the big 4 Australian banks and had cumbersome designs, made for function, not form. These days, the landscape has changed on both sides of the counter. For customers, the shift towards electronic payments has seen a massive adoption of debit and credit cards, as well as more recently, mobile wallets. For merchants, there has been a dramatic improvement in EFTPOS hardware which now not only comes in a plethora of sleek styles to match the aesthetic of your business, but also offers up new functionality to help businesses manage their bottom line and enhance the customer experience, such as surcharging , tipping, and Pay at Table technology. And if embracing the cashless society wasn’t already tracking steadily, the COVID-19 pandemic massively accelerated the trend. Business owners and customers all over Australia have precipitously sought to reduce cash handling since early 2020 due to health concerns around the physical exchange of money. In 2021, the Reserve Bank of Australia reported that just 27% of in-person payments were made using cash. EFTPOS VS. eftpos To confuse matters, eftpos (lowercase) also refers to a privately-run Australian debit card platform. So, while EFTPOS is the globally accepted term referring to the conduit between a customer’s bank account and your business bank account (or Zeller Transaction Account ), eftpos is also the brand name of such a payment system. The important difference with eftpos is that it only serves debit cards — not credit cards — and works in Australia only. It’s unlikely that you’ve ever noticed this subtle difference because 90% of all debit cards in Australia are co-branded with Visa or Mastercard. This means they can process transactions through Australia’s local debit card network (eftpos) as well as international schemes. When a customer taps, dips or swipes their eftpos card and selects either Cheque or Savings, the transaction goes through the eftpos network. If a customer decides to pay via Credit, the transaction is processed via Visa or Mastercard because a credit payment cannot be processed through eftpos. Without getting into the weeds, it’s just important to be aware of the difference between EFTPOS and eftpos so that you understand what you are looking for when shopping for a card-processing terminal. How do EFTPOS transactions work? EFTPOS transactions start with an EFTPOS machine . These machines are the conduits that allow the relevant networks to connect and exchange information in order to complete a payment. The networks involved include the bank where the buyer has an account, your own business bank account , the company providing the EFTPOS machine, and more recently, your point-of-sale technology. The back-and-forth talk between the terminal sitting on your counter and the larger networks ensures the card being used has the necessary funds in its associated account and confirms the identity of the cardholder as well as the bank tied to the card. If the machine is integrated with your POS software, the machine will also communicate with the system to bring up the relevant transaction amount on the terminal. The image below outlines how this system works, and in what order. The Acquirer refers to the financial institution that processes the payment on behalf of the merchant. Zeller for example. The Card Scheme, also known as a payment network or payment scheme, is the organisation that establishes and maintains the rules and infrastructure for the use of credit and debit cards. Visa, Mastercard, American Express are all examples of card schemes. The Card Issuing Bank is the financial institution that provides a credit or debit card to the customer. How long do EFTPOS transactions take? While the transaction is instantaneous, the multi-step process of authentication, verification, and funds transfer detailed above can require some time to fully process. How quickly your money will “settle” (that is, show up in your bank account) will also vary from one EFTPOS terminal provider to another. This is a very important consideration when choosing your payments platform, because the time it takes to access your funds will greatly affect your business cash flow. For example, Zeller customers who settle to their Zeller Transaction Account will receive their funds nightly. Many other platforms can take up to 72 hours. What to look for in an EFTPOS machine When choosing an EFTPOS terminal for your business there are nine questions you need to be asking . Your selection process will involve a consideration of initial output costs, such as terminal fees and setup fees, functionality, and mobility but to make sure you’re getting the best bang for your buck, your terminal also needs to tick the following boxes: It needs to accept all card types As a business owner in Australia, your best bet is to ensure your terminal can accept eftpos debit cards as well as common international standards, like Visa, Mastercard, and American Express. It needs to accept contactless payments Thanks to the expansion of NFC technology , the “tap-and-go” payment method has gained enormous traction in Australia both with cards and mobile wallets in recent years (four in five customers now pay contactlessly at least once a week). It’s an extremely quick and convenient way for your customers to pay, and will no doubt become the norm over the next few years. Merchant fees need to be low and flat Typically, the EFTPOS transaction fee (charged by the machine provider) will depend on the customer’s choice of payment method — making it very hard for businesses to estimate what their transaction fees will amount to for any given period. Having one low, flat fee for all card types means that you can forecast how much you are likely to pay in processing fees. At Zeller, you will only ever pay 1.4% per transaction. It needs to offer the option of surcharging Also more commonly referred to as zero-cost EFTPOS , surcharging gives you the ability to pass on the aforementioned fee to the customer. Surcharging is becoming more and more common in Australia, and is an important cost-cutting measure for businesses. Read our article on whether surcharging is right for your business. It needs to offer multiple options for connectivity If your WiFi connectivity dips out, it’s integral that you can keep processing payments until it is back up and running. Having a SIM card in your EFTPOS machine means you’ll never have to worry the next time your main connection fails, you’ll simply need to switch to SIM usage and business can continue as usual. For more detail on how terminals work, read our step-by-step guide on how to use an EFTPOS machine. Introducing Zeller At Zeller, we’ve built a smarter EFTPOS payments solution . Zeller Terminal is a dependable, secure EFTPOS terminal boasting mobility, customer convenience, a sleek design and low, transparent fees. With Zeller Terminal, you pay just 1.4% per transaction — no matter whether the customer has tapped, dipped or swiped their payment method of choice. With one low rate for all in-person payments, as well as faster settlements, forecasting your cash flow is simple. With Zeller, you can accept payments, access the money you’ve earned, oversee and manage your cash flow, and much more. And as more payment methods emerge, we are committed to supporting your business to keep pace with change.

An EFTPOS machine is an essential tool for modern businesses. EFTPOS (which stands for Electronic Funds Transfer at Point of Sale) machines accept credit and debit card transactions. A modern EFTPOS machine from a reliable payment services provider will capably handle this task, by sending transaction approvals and transferring funds between different systems. Then, the customers' funds are settled into your nominated business transaction account — ready for you to spend, reinvest in your business, or pay suppliers and employees. This is the bedrock of a functional EFTPOS machine. No matter what other features and services are offered, your business needs an EFTPOS terminal that is ready to process every customer’s electronic payment quickly, securely, and affordably. Understanding the basic EFTPOS functionality An EFTPOS machine facilitates the movement of funds from a customer’s account into your own. When you’re selling in-person, you require an EFTPOS machine in order to accept digital payments. Contactless payments are now the norm in Australia; without an EFTPOS machine, you’re narrowing your potential customer pool to those few Australians who still carry cash. Zeller Terminal accepts payments through various methods, including inserted, swiped, and contactless payments from cards or NFC-enabled devices, as well as MOTO payments . How do you enter a card number on a payment terminal? To enter a card number on a card machine, simply key in the card number, expiration date and Card Verification Value (CVV). These transactions are known as MOTO (short for Mail Order Telephone Order) payments . On Zeller Terminal, accepting a manually-entered card payment is easy — simply toggle the mode switch from Card to MOTO. The ability to manually enter card details provides you with a quick, convenient and secure way to accept payment from customers when they’re not with you in-person. Using advanced EFTPOS features A next-generation EFTPOS machine offers you functionality beyond just accepting payments. The best EFTPOS machines combine fast, reliable payment processing with valuable features that can help you grow your business, such as: enabling you to showcase your brand through receipts and screensavers. providing you with enhanced security on every transaction accepted. integrating with POS systems, or offering a free, built-in point-of-sale. automatically splitting transactions by amount, or by number of guests. prompting customers to add a tip at the end of a transaction. Keep reading to discover how to use an EFTPOS machine to grow your business, by leveraging Zeller Terminal’s advanced features. Showcasing your brand A receipt, whether printed or digital, is the perfect place to promote your business and deliver a memorable customer experience. No longer just for proof of purchase, your receipts can help you promote your business by: boosting brand awareness by giving you a place to showcase your logo. motivating customers to follow you on social media with links. building customer relationships with a custom note or message. minimising the risk of chargebacks by including helpful return information. Additionally, the best EFTPOS machines, like Zeller Terminal, enable you to add a custom screensaver to the display. This screensaver could include your business logo, or a promotional offer to display to customers when they’re making payment. You can also learn how to Use Zeller Receipts as a Marketing Tool here . Providing enhanced security As your business grows, it’s likely that you hire new staff members to accept payments with your EFTPOS terminal. Unfortunately in some circumstances, this can create a security risk to your business, and your customers. Zeller Terminal enables you to take control of who can access secure information and features from your EFTPOS machine — such as transaction information, issuing refunds, or updating terminal settings. By setting a secure PIN code on Zeller Terminal, you can immediately restrict access to specific features on your EFTPOS machine, helping to protect your business and enhance your security. Point-of-sale functionality and integrations A point-of-sale (POS) system enables you to create an item library, track inventory, build a shopping cart, accept payments from customers, and send an itemised receipt, in one seamless, fully integrated flow. POS systems are a modern alternative to the traditional cash register and can be run on computers, tablets, smartphones, and even EFTPOS terminals. Zeller POS Lite comes built-in free to Zeller Terminal 2, enabling you to build a robust item library that displays directly from your EFTPOS terminal or smartphone (via Zeller App). You can use Zeller POS Lite to manage items, add modifiers and attributes to products, and create detailed item reports to track what’s selling, and what’s not. Alternatively, a modern EFTPOS machine should also integrate directly with your existing POS system — whether you use a hospitality-based POS like Redcat , or a retail-focused system like Zii POS . Zeller Terminal integrates seamlessly with over 600 third-party POS systems, which you can find on the Zeller Partner Hub . Split transactions In many circumstances, such as in a restaurant or cafe, your customers may ask to split a payment across a number of people. This requires you to operate a modern EFTPOS terminal that will enable you to automatically split transactions, without your staff having to calculate the individual payment values manually or with a calculator. With Zeller Terminal, you have the option to split transactions directly from the device. Transactions can be divided by the number of guests evenly, or alternatively, every guest can choose a custom value to make payment for, until the entire transaction is complete. Prompting customers for tips If you’ve delivered a great customer service experience, customers may want to leave you a tip at the end of an EFTPOS transaction. EFTPOS tipping is increasingly common in service industries such as cafes and restaurants, so having an EFTPOS machine that automatically prompts customers to leave a tip is essential. EFTPOS terminals that are automatically enabled with a built-in tipping feature may lead to an increase in gratuity, benefitting your employees. In fact, modern EFTPOS machines like Zeller Terminal, which automatically prompt customers for gratuity at the end of a payment, have delivered an increase in tips by up to 30% . Why you need an EFTPOS machine We know, with certainty, that Australians prefer using debit and credit cards over notes and coins. Research from the Reserve Bank of Australia demonstrates the sharp decline of physical cash use: respondents under the age of 40 used cash for less than 15% of their payments in 2019. In 2016, cash accounted for 30% of their payments. Over the last five years, the number of ATMs across Australia has fallen 53.6% — making it difficult for those few consumers who still want to carry cash to do so. The world has gone digital, and as a result so have businesses. All of this is unlikely to come as a surprise, considering the obvious benefits of credit and debit cards: they’re simple, fast, secure, and generally easy to use. A customer just needs to tap, dip or swipe their card or mobile wallet to your terminal — without the need to handle cash. For this reason, having an EFTPOS machine is just as critical for your business operations as it is for your customers’ experience. The cards EFTPOS machines accept EFTPOS terminals accept both credit and debit cards. However, with advancements in technology come new ways to pay — meaning older terminals from traditional providers may not support the payment methods your customers prefer. When selecting the right EFTPOS machine for your business, it’s important to look for a terminal that will enable you to offer customers a broad range of payment processing options. How do your customers expect to be able to pay for the goods or services you provide? If you run a busy coffee shop in the CBD, your customers might want to use their mobile phone or smartwatch to pay for their morning caffeine hit. Your customers may even use lesser-known payment types that are growing in popularity. When choosing which EFTPOS machine is right for your business, set your sights on an EFTPOS terminal that accepts all of the major card networks (such as eftpos, Mastercard, Visa, American Express, and JCB) as well as other convenient payment methods your customers prefer to use (such as Apple Pay and Google Pay). Do EFTPOS machines need internet? An EFTPOS machine will use a wired or wireless internet connection to process payments. Modern terminals use SIM cards, making it possible for you to process transactions outside of Wi-Fi range (a must when customers expect to be able to pay at the table). However, best-in-class terminals will provide multiple connectivity options: a SIM card slot, as well as Wi-Fi connectivity. Business owners must also ensure that their EFTPOS terminal will connect to the available mobile network — with the 3G network shutdown rolling out across Australia, Zeller Terminal will reliably connect to 4G networks, too. Communication between the terminal, the card issuer, the processing bank, and the payment network requires reliable connectivity — but that doesn’t have to come from a traditional internet connection. Technology has evolved so you no longer need to have your terminal hardwired, sitting stationary by your register. Your payment tools should work wherever you do. How long does an EFTPOS transaction take? Every business owner wants to know how long an EFTPOS transaction takes. The time it takes to settle funds to your business bank account directly impacts cash flow and, by extension, your ability to grow your business. Funds accepted via Zeller Terminal are swept to your chosen Zeller Transaction Account nightly, available for spending instantly using your free Zeller Debit Card . For more information about the limitations of traditional banks, read Transaction Processing and Settlement: Why Do Banks Take so Long? Finding the best EFTPOS machine for your business needs EFTPOS machines make payments easy for customers and business owners alike. Customers can quickly pay for their goods or services and get on with their day, while your business can cut down on wait times and efficiently provide great service to everyone making a purchase. Finding a trusted, secure and innovative EFTPOS provider should be a top priority for your business. Zeller enables merchants to accept every payment, accelerate cash flow, and quickly manage and access funds. Learn more about how Zeller Terminal can help your business. Interested in learning more? Find out how EFTPOS Transactions Work here.