EFTPOS stands for Electronic Funds Transfer at Point of Sale. In plain English, it is the system that allows your customers to pay you by tapping, inserting, or swiping their debit or credit card at a payment terminal. When a customer taps their card, phone, or smartwatch at your terminal, the transaction request travels through a secure network to the customer’s bank. The bank checks the funds and approves or declines the payment within seconds. The funds then settle into your business account, typically within one to two business days.
For Australian businesses in 2026, EFTPOS is not optional — it is essential. Over 90 per cent of in-person payments in Australia now use EFTPOS or digital wallets. Cash usage has dropped from 27 per cent of all payments in 2019 to just 13 per cent today. Customers expect to tap and go, and businesses that cannot offer this lose sales.
Tap to Phone (SoftPOS)
The newest option in the Australian market is Tap to Phone, also known as SoftPOS. This technology turns your smartphone into a payment terminal. You download an app, pair it with a small Bluetooth card reader (or use your phone’s built-in NFC antenna), and you can accept contactless payments directly. This is the most affordable entry point for sole traders and micro-businesses who process low volumes and do not want to invest in dedicated hardware.
EFTPOS vs POS — What Is the Difference
EFTPOS and POS are related but different. An EFTPOS terminal handles one job: processing payments. It reads the card, communicates with the bank, and settles the transaction. A POS (Point of Sale) system is broader — it manages your entire sales operation, including inventory, staff rostering, sales reporting, customer management, and receipts. Most modern businesses use both: a POS system to manage operations and an integrated EFTPOS terminal to handle the payment processing. BuzzPay’s EFTPOS terminals integrate with over 900 POS systems, meaning the payment data flows directly into your sales records without manual entry.
Choosing the Right EFTPOS Provider
When comparing EFTPOS providers, focus on five things: transaction fees (the biggest ongoing cost), terminal options (do they offer the right hardware for your business type?), POS integration (does it connect with the systems you already use?), contract terms (avoid long lock-in periods), and support (what happens when something goes wrong at 7pm on a Saturday?). BuzzPay differentiates on support — 24/7 human support on 1300 289 972, same-day terminal swaps in metro areas, and guided onboarding to get you processing within 24 to 48 hours.
How EFTPOS Works — Step by Step
The EFTPOS process is simple from the merchant’s perspective, but there is sophisticated technology working behind the scenes. When a customer presents their card at your terminal, the terminal reads the card data — either from the chip, the contactless antenna, or the magnetic stripe. The terminal encrypts this data and sends a transaction request through a payment network to the customer’s bank (the issuing bank). The issuing bank checks the customer’s available funds, applies any fraud screening, and returns an approval or decline response. This entire process takes two to five seconds for a contactless transaction.
Once approved, the terminal prints or sends a receipt, and the transaction is recorded. At the end of the business day (or multiple times per day, depending on your provider), all approved transactions are settled — meaning the funds are transferred from the customers’ banks, through the payment network, into your merchant account. Settlement times vary by provider: some offer same-day settlement, while others take one to two business days
Types of EFTPOS Terminals
Countertop Terminals
Countertop terminals are fixed devices that sit on your checkout counter. They connect via Ethernet or Wi-Fi and are designed for businesses with a fixed payment point — retail shops, pharmacies, service counters, and reception desks. These terminals are typically the most reliable option because they use a wired connection, which means fewer connectivity issues during busy periods.
Portable Terminals
Portable terminals connect via Wi-Fi or Bluetooth and can move within your premises. They are ideal for restaurants and cafes where staff need to bring the terminal to the table for bill splitting or tipping. They also suit businesses with multiple service points within the same location, such as a large retail floor or a medical practice with several consulting rooms.
Wireless (Mobile) Terminals
Wireless terminals use a SIM card with 4G connectivity, allowing them to operate anywhere with mobile coverage. They are built for businesses that take payments on the go — tradies, delivery drivers, market vendors, event operators, and mobile service providers. BuzzPay’s wireless terminals are compact, lightweight, and designed to survive a day in a toolbox or a market stall.
EFTPOS in 2026 — What Has Changed?
The EFTPOS landscape in Australia is evolving rapidly. The RBA has announced that card surcharges will be banned from 1 October 2026, meaning businesses will no longer be able to pass transaction costs directly to customers. Interchange fee caps are being reduced, which should lower costs for merchants — particularly small businesses. Contactless payments now dominate, with tap-and-go accounting for the vast majority of in-person transactions. And new technologies like Tap to Phone are making EFTPOS accessible to businesses that previously operated cash-only.
Australia has approximately 981,000 EFTPOS terminals processing over 2 billion transactions annually. The market is competitive, with options from banks (NAB, CommBank, Westpac, ANZ), fintechs (Square, Zeller, Tyro), and specialist providers like BuzzPay. The key for businesses is to choose a provider that offers the right combination of price, features, support, and flexibility for their specific needs.
How Much Does EFTPOS Cost?
EFTPOS costs come in three parts: the terminal itself (purchase or rental), transaction fees (a percentage of each sale), and any monthly or setup fees. Terminal costs range from around $59 for a basic mobile card reader to $299 or more for a full-featured countertop device. Some providers offer terminals for purchase with no monthly fee, while others charge a monthly rental. Transaction fees in Australia typically range from 1.0 per cent to 1.6 per cent per transaction, depending on your provider, sales volume, and card mix. BuzzPay offers transparent pricing with no hidden fees, no lock-in contracts, and competitive transaction rates tailored to your business.
