Get Started with EFTPOS

Step 1: Your Customer Makes a Payment

Your customer swipes, inserts or taps their payment card or smart device

Step 2: Transaction Is Sent To The Payment Network

• The EFTPOS terminal sends an encrypted payment request through the payment network to the customer’s bank.

• The transaction is approved if funds are available; otherwise, it’s declined.

Step 3: You Receive the Funds

• Your acquirer deposits the transaction value into your settlement account

• Settlement times vary but typically occur overnight, or within 1–2 business days

Your bank plays a crucial role in processing transactions and providing additional payment facilities.

They assist with:

• Setting up a business bank account

• Providing a Merchant ID and/or Terminal ID, which is loaded on your EFTPOS terminal, for payment processing

• Settling funds into your account, usually overnight

• Enabling features like contactless and credit card payments and MOTO

Associated costs: While EFTPOS debit transactions are often covered under a standard network fee, accepting credit or contactless payments incurs a Merchant Service Fee (MSF), which varies by card type and transaction volume. These fees are charged per transaction and billed monthly. Many businesses offset this cost by applying a surcharge. Your bank may also charge a one-off set-up fee for a new merchant facility.

Banks are not the only providers of acquiring services, but they are the best choice for most businesses. Learn more here

In addition to EFTPOS, debit and credit payments, many businesses accept additional payment methods to cater to customer preferences.

• Credit Card Networks – For example, American Express (Amex) which offers reward programs and premium cardholder benefits, though it typically has higher transaction fees for merchants.
• Buy Now, Pay Later (BNPL) Services – Platforms like Afterpay and Laybuy allow customers to split payments into instalments.
• Digital Wallets & Mobile Payments – For example, Alipay and WeChat Pay which are popular Chinese apps with payment capabilities.

Associated costs: To accept payments from these providers, businesses need to sign an agreement directly with the provider, sometimes through a facilitator. Each provider/facilitator sets its own fees. For example, Alipay acceptance is facilitated by various providers in New Zealand, but the service itself is provided by Alipay.