EFTPOS
EFTPOS, Electronic Funds Transfer Point of Sale, refers to the technology that allows a retailer to directly debit a customer's bank account by using a debit card. The debit card, generally the same as an ATM card, is swiped through a reading device just like a credit card. The customer must enter his or her PIN number, generally requested once the amount of the sale has been entered into the EFTPOS device.
Advantages to retailers
The retailer is paid 'instantly' without having to accept actual cash.
No need to manually count cash and then tally with the cash registers. Time and human resource is saved.
With EFTPOS, the money is wired directly into the retailer's bank account, bypassing the risk of handling large amount of cash.
Advantages to Customers
A shopper need not have cash on hand, credit cards, or a cheque book to make a purchase. This is especially convenient for unplanned or impulse buying.
The customer can also get cash back from the transaction.
Furthermore, if an item needs to be returned to the store, an EFTPOS sale affords the patron an instant cash refund, notwithstanding store policy. Contrast this with personal cheques which require a customer to wait two weeks or more before cash refund can be offered.
EFTPOS saves the consumer money by sparing personal cheques and ATM fees to withdraw cash
