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Over the last decade, Australians have radically changed the way they make payments. In fact, The Reserve Bank of Australia data shows that Australians made around 650 electronic transactions per person in 2021/22 – that’s more than double the number of electronic transactions they made a decade before.
About 75% of these transactions used debit and credit cards – and 95% of those card purchases used contactless payments. On the receiving end of all these card transactions is the humble eftpos machine.
EFTPOS (not to be confused with eftpos, the brand: more on that here) stands for Electronic Funds Transfer at Point of Sale. Customers make these payments with a credit or debit card using a merchant’s eftpos terminal, and the funds are electronically transferred from the customer to the merchant. These payments differ from online or card-not-present transactions, where the card details are entered manually or provided remotely for online purchases, and they require the physical presence of the card.
That’s the technical stuff and while you might be thinking it’s all well and good that consumers are paying using EFTPOS more regularly, you might also be wondering why payment preferences have shifted, and what the benefits are of using EFTPOS in your business.
With the rise in electronic transactions, business owners would be wise to consider ensuring their business is capable of meeting customer demand for contactless EFTPOS payments. Here are the six benefits of EFTPOS you might not have known.
1. Increase your sales
By offering multiple payment options businesses can cater to a wider range of customers and increase sales. By accepting EFTPOS payments, your business is still capable of accepting cash. Customers who prefer using cards over cash are more likely to make purchases when EFTPOS payments are available. Square provides everything you need to start accepting EFTPOS payments, with hardware that accepts contactless cards, devices and chip cards.
2. Create convenience for your customers
EFTPOS eliminates the need for customers to carry cash and provides them with a convenient payment method and they also have the flexibility of choosing their payment option on the terminal. For business owners, EFTPOS reduces the risk of cash handling, which involves counting, sorting, storing and transporting cash. And not to mention the potential losses due to human error or theft.
3. Create efficiency
Processing EFTPOS transactions is much faster than processing cash payments. With EFTPOS, customers can quickly tap or insert their cards, enter their PIN, and complete the transaction within seconds. This efficiency saves the customer time at the point of sale. Improving the overall customer experience and allowing businesses to move on to the next customer.
4. Enhance security
With EFTPOS, there is no need to store large amounts of cash on-site, reducing the risk of theft and robbery. Credit card fraud is a real concern for Australians, too. The Australian Bureau of Statistics says that more than 8% of Australians – or 1.7 million people – experienced credit card fraud in 2021/2022, up from just under 7% the previous year. EFTPOS transactions encrypt and require verification through PINs or signatures. This provides an extra layer of security for your business and your customers. Square takes security seriously, too, and with layered security in our card-processing systems, you and your customers will be well protected.
5. Streamline record-keeping
EFTPOS reduces the administrative burden associated with manual record-keeping. EFTPOS transactions generate electronic records, making it easier for businesses to track and manage records of their sales. Electronic records can be integrated into accounting systems, simplifying your financial reporting and inventory management processes.
EFTPOS is a valuable tool that will help you enhance your payment processes. If you’re ready to start accepting EFTPOS payments, there’s a Square solution for you. You’ll enjoy one low flat rate per transaction, no added fees and no lock-in contracts. Whether you’re selling in-person, online or on the go, you can give your customers what they want with Square to experience firsthand how EFTPOS can improve efficiencies, customer satisfaction, security and your bottom line.
This article is for informational purposes only and does not constitute professional advice. For specific advice applicable to your business, please contact a professional.