In the world of payments and transactions, EFTPOS and POS are two different terms that are often confused. But what is the difference between them?
EFTPOS stands for Electronic Funds Transfer at Point of Sale.
It is a type of payment system where customers use their debit or credit card to make payments by entering their personal identification number (PIN) on an electronic device at the point of sale.
It is one of the most popular payment methods in Australia and New Zealand and is widely used in retail stores, supermarkets, restaurants, and more.
On the other hand, POS stands for Point of Sale. This term refers to the checkout area or system where orders are placed (typically in the hospitality industry.
A POS system is usually made up of hardware, such as a computer or scanner, and software that helps process orders.
As the name suggests, an EFTPOS terminal is a payment processing system that incorporates all the best features of a POS system.
Suddenly, businesses not only take money but also track orders, inventory, and more.
EFTPOS systems are used in retail stores, supermarkets, restaurants, cafes and more.
The key difference between the two is that a POS system is mainly used for ordering and tracking purposes, while an EFTPOS system also enables payments via debit/credit cards.
The integration of POS and EFTPOS means that customers can pay for their items in one easy process, rather than involving two separate machines. This means less time at the till, lower transaction costs and more efficient business processes.
EFTPOS systems often feature a touchscreen interface which makes it easier to process payments, enter customer data and manage inventory.
This is beneficial for businesses that want to streamline their point-of-sale operations and deliver a better experience for customers.
Another advantage of EFTPOS is the ability to accept a wider range of payment options, including debit/credit cards, contactless payments and mobile wallets.
This can be extremely useful for businesses looking to offer their customers more payment options; however, it does come with additional costs associated with the setup, maintenance and use of the system.
These days, you’ll also find zero-cost EFTPOS systems that allow merchants to pass on the cost of the EFTPOS system to customers as a surcharge.
This has become increasingly popular with businesses using EFTPOS as it helps them to manage their own costs, while still delivering a great customer experience.
Choosing Between a POS and EFTPOS System
As a business, you may be wondering which system is better for your needs. Ultimately, the decision comes down to assessing your current business requirements and considering the cost of each system.
Entry-level POS systems are usually more cost-effective and easier to set up than EFTPOS systems.
However, they come with their own set of limitations and may not be suitable for businesses that require advanced features. Of course, they also don’t have as many features.
On the other hand, EFTPOS systems are more expensive and require more technical know-how to set up and maintain.
But they provide the advantage of being able to accept a wider range of payment methods, including credit and debit cards.
They are also much more secure than entry-level POS systems, with strong encryption and fraud prevention measures.
Also, they come with lots of tracking features, allowing merchants to monitor sales and transactions more precisely.