eCommerce Glossary
This e-commerce glossary features over 250 essential terms every online seller should know to succeed in digital commerce.
EFTPOS refers to an electronic payment system facilitating the transfer of funds at the point of sale through payment cards, including debit or credit cards. This payment method, also known as a “card present” transaction, occurs when customers use their cards at payment terminals located in retail stores or other points of sale. Funds or payment information are transferred from the customer’s bank account to the merchant’s bank account via an established payment ecosystem.
Key Features of Electronic Funds Transfer at Point of Sale (EFTPOS):
- Electronic Payment System: EFTPOS enables electronic transactions, eliminating the need for cash payments at the point of sale.
- Payment Cards: Customers use debit or credit cards issued by financial institutions to make payments.
- Point of Sale Terminals: Transactions occur at dedicated payment terminals installed at retail locations or other points of sale.
- Card Present Transaction: The term “card present” signifies that the physical payment card is presented by the customer during the transaction.
- Funds Transfer: Funds are transferred electronically from the customer’s bank account to the merchant’s bank account through the payment network.
- Secure Payment Ecosystem: EFTPOS transactions are processed securely within a regulated payment ecosystem, ensuring the confidentiality and integrity of financial information.
Benefits of Electronic Funds Transfer at Point of Sale (EFTPOS):
- Convenience: Offers customers a convenient and efficient way to make payments without the need for cash.
- Security: Provides secure transactions with encryption and authentication measures, reducing the risk of fraud.
- Speed: Facilitates quick and seamless transactions, enhancing the overall shopping experience for customers.
- Recordkeeping: Enables electronic recordkeeping of transactions for both merchants and customers, simplifying accounting and reconciliation processes.
- Integration: Easily integrates with existing point of sale systems, enabling merchants to accept a wide range of payment methods.
Usage and Adoption of Electronic Funds Transfer at Point of Sale (EFTPOS):
EFTPOS systems are widely used across various industries, including retail, hospitality, and healthcare, among others. As electronic payment methods continue to evolve, EFTPOS remains a fundamental component of modern commerce, offering secure and efficient transactions for businesses and consumers alike.