Fact-checked by Grok 2 weeks ago

EFTPOS

EFTPOS, an acronym for Electronic Funds Transfer at Point of Sale, is an electronic payment system primarily in Australia and New Zealand that enables customers to pay merchants directly from their bank accounts using debit cards at point-of-sale terminals, typically without incurring credit fees.^[1] This direct debit mechanism distinguishes EFTPOS from credit card schemes, as funds are transferred immediately between bank accounts, promoting efficient and low-cost transactions for both consumers and businesses.^[2] Introduced in Australia in 1984 as a collaborative initiative among major banks to facilitate retail electronic payments, EFTPOS quickly expanded to become a cornerstone of the nation's payment infrastructure.^[1] In neighboring New Zealand, the system was piloted in 1985 by the Bank of New Zealand at select Shell service stations, marking an early adoption of widespread debit card usage and leading to rapid proliferation by the 1990s.^[3] By the early 2000s, EFTPOS had dominated retail transactions in both countries, with New Zealand achieving near-universal merchant acceptance^[4] and Australia processing over 10 billion card payments annually, a significant portion through its dedicated EFTPOS network.^[5] Today, managed in Australia by eftpos Payments Australia Limited under Australian Payments Plus, the system handles a significant share of in-person debit card payments (with over 85% of debit cards being dual-network cards enabling EFTPOS), integrating modern features like contactless payments, mobile wallets, and online capabilities while maintaining lower merchant fees compared to international schemes.^[2]^[6] Key advantages of EFTPOS include its cost-effectiveness, with wholesale fees reduced by 22% in 2025 to enhance competitiveness, and robust security measures such as PIN verification and fraud monitoring.^[2] In New Zealand, EFTPOS remains a primary debit payment method, comprising a significant portion of card transactions alongside credit options, though its usage faces competition from international networks like Visa and Mastercard.^[7] Ongoing innovations, including least-cost routing for merchants and compatibility with devices like iPhones for tap-to-pay, ensure EFTPOS's relevance in a digital payments landscape increasingly dominated by electronic methods, with Australians averaging 560 electronic transactions per person in 2019/20.^[2]^[8]

Overview and Fundamentals

Definition and Core Principles

EFTPOS, or Electronic Funds Transfer at Point of Sale, is a debit-based electronic payment system that enables real-time authorization of payments from a customer's bank account to a merchant's account during a purchase at a point-of-sale terminal.^[9]^[10] This system relies on debit cards linked to the customer's bank account, ensuring that payments are processed without extending credit to the cardholder. The core principles of EFTPOS center on direct debit authorization, where the transaction requires sufficient funds in the customer's account at the time of purchase, eliminating any form of credit risk for the merchant or issuer.^[11] Unlike credit-based systems, EFTPOS does not involve revolving credit or deferred payments; instead, it integrates with domestic banking networks to facilitate real-time authorization and deferred settlement, promoting efficient and low-cost transactions. This approach distinguishes EFTPOS from credit card networks, which allow purchases on borrowed funds subject to later repayment, and from ATM networks, which primarily handle cash withdrawals rather than in-store purchases.^[12] In a typical EFTPOS transaction, the customer inserts, swipes, or taps their debit card at the merchant's terminal, followed by entry of a personal identification number (PIN) for authentication.^[11] The terminal then sends an authorization request through the acquirer bank to the issuer bank, which verifies the card details, PIN, and available funds before approving or declining the transaction in real time.^[13] Upon approval, the funds are debited from the customer's account and credited to the merchant, completing the point-of-sale exchange without the need for physical cash.^[14]

Operational Mechanism

The operational mechanism of EFTPOS involves a secure, real-time electronic transfer of funds from a customer's bank account to a merchant's account at the point of sale, utilizing debit card infrastructure to ensure immediate authorization and deferred settlement. This process relies on standardized protocols for data capture, routing, and verification, distinguishing it from credit-based systems by directly debiting available funds without extending credit.^[15]^[16] Key components include point-of-sale (POS) terminals, which serve as the primary interface for initiating transactions; card readers integrated into these terminals that support magnetic stripe swiping, chip insertion (EMV standard), and contactless tapping via NFC technology; payment gateways that encrypt and transmit transaction data between the terminal and financial networks; and settlement systems managed by banks or clearing houses for batch processing of net funds transfers. POS terminals capture essential details such as card number, expiration date, transaction amount, and PIN, while card readers ensure secure data extraction to prevent fraud. Payment gateways act as intermediaries, facilitating secure communication over encrypted channels, and settlement systems handle the reconciliation of multiple transactions at the end of the business day or in batches.^[13]^[15]^[16] The transaction process unfolds in sequential steps: first, the customer presents their debit card to the POS terminal, where the card reader captures payment details and the customer enters their PIN for authentication if required (bypassed for low-value contactless payments under predefined limits); second, the terminal forwards the encrypted authorization request, including the transaction amount and card data, to the merchant's acquiring bank (acquirer) via a payment gateway; third, the acquirer routes the request through a domestic EFTPOS network switch to the customer's issuing bank for verification of funds availability, card validity, and PIN correctness; fourth, upon approval, the issuing bank places a hold on the funds and sends an authorization code back through the network to the acquirer and terminal, confirming the transaction; finally, the merchant completes the sale, and settlement occurs later when the acquirer aggregates approved transactions and clears them with the issuing bank, transferring funds to the merchant's account, typically within one to two business days. This end-to-end workflow ensures atomicity, with the entire authorization phase completing in seconds to provide seamless customer experience.^[13]^[15]^[16]^[14] Domestic EFTPOS network switches play a critical role in routing authorization requests efficiently between acquirers and issuers, optimizing for low-cost domestic debit paths while adhering to interchange rules, and facilitating clearing by batching transaction data for interbank reconciliation without immediate fund movement. These switches act as centralized hubs, directing traffic to avoid international schemes for purely domestic debit transactions, thereby reducing fees and latency.^[15]^[14]^[17] Error handling is integrated throughout the process to manage failures securely: if the issuing bank detects issues during verification, it declines the transaction and returns a response code to the terminal, triggering an immediate display of the denial to the merchant and customer; common decline reasons include insufficient funds (resulting in a "Do Not Honour" code), invalid or incorrect PIN after three attempts (locking the card temporarily), expired or invalid card details (format errors), or transaction limits exceeded in offline mode; in such cases, the terminal generates a decline receipt for records, and no funds are transferred, with reversals automatically initiated for any partial authorizations interrupted by network failures or power issues. Merchants are advised to request alternative payment methods upon decline, while customers contact their issuer for resolution.^[13]^[18]^[15]

Historical Development

Origins and Early Adoption

The conceptual origins of electronic funds transfer at point of sale systems, which later became known as EFTPOS in Australia and New Zealand, trace back to the 1970s, emerging from broader experiments in electronic banking and the rapid development of Automated Teller Machine (ATM) networks, which demonstrated the feasibility of real-time electronic transactions and reduced reliance on cash for retail environments.^[19] Influenced by the need for cashless retail payments to streamline operations amid rising volumes of credit card usage, early concepts built on Automated Clearing House (ACH) systems and ATM infrastructures to enable direct debits from bank accounts at merchant locations.^[19] These developments were driven by banks' desire to compete in an increasingly digitized financial landscape, where ATMs—first introduced in the mid-1960s—had already proven electronic fund transfers could minimize cash handling and enhance customer convenience. EFTPOS was first introduced in Australia in 1984 as a collaborative initiative among major banks, with the initial trial conducted by Westpac and Woolworths at BP service stations, marking the system's practical origins in the region.^[1] In New Zealand, the system was piloted in 1985 by the Bank of New Zealand at select Shell service stations.^[3] In the United States, the first pilots of POS debit systems, precursors to modern EFTPOS-like mechanisms, occurred in the early 1970s. City National Bank and Trust in Columbus, Ohio, launched an electronic funds transfer pilot in October 1971, allowing customers to pay merchants directly from checking accounts via telephone-based authorizations, though it received limited consumer uptake due to unfamiliarity with the technology.^[20]^[21] Visa's Entrée program followed in 1975, another Columbus-based initiative that connected merchants to a central data center in California for real-time transaction verification, laying groundwork for debit networks integrated with Visa and Mastercard infrastructures.^[21] These efforts were propelled by the goal of reducing cash-handling costs for retailers and speeding up settlements compared to paper checks or credit slips, while fostering bank competition through innovative payment alternatives.^[20] Early adoption in the United Kingdom during the 1980s involved banks attempting to establish national EFTPOS systems, often through partnerships with retailers, though progress was uneven. Discussions and small-scale pilots emerged in the late 1970s, with press coverage highlighting potential EFTPOS trials at supermarkets and petrol stations by 1978–1980, influenced by U.S. debit experiments and the growing ATM networks in Europe.^[22]^[20] By the mid-1980s, initiatives like those from major banks aimed to create interoperable systems, but faced significant hurdles including high terminal setup costs—often exceeding $1,000 per unit—and interoperability issues between competing bank networks, which fragmented adoption.^[22] These challenges delayed widespread rollout, with only proprietary or limited pilots operational by the early 1980s, underscoring the technical and regulatory barriers to a unified cashless retail ecosystem.^[22]

Key Milestones and Evolution

In the 1990s, the payment industry underwent a significant shift toward chip-based cards with the development of the EMV standards, a global specification created through collaboration between Europay, Mastercard, and Visa to enhance security in electronic transactions.^[23] The EMV protocol, first specified in 1994 and refined in version 3.0 by 1996, replaced vulnerable magnetic stripes with integrated circuit chips that generate dynamic authentication codes for each transaction, substantially reducing counterfeit and fraud risks in systems like EFTPOS.^[23] This transition marked a foundational advancement, as chip cards became mandatory in regions such as Europe by the late 1990s, leading to measurable declines in card-present fraud rates.^[23] The early 2000s saw regulatory interventions aimed at fostering competition and efficiency, exemplified by the Reserve Bank of Australia's (RBA) 2003 reforms to the EFTPOS system. These measures addressed access barriers and fee structures by mandating standardized interchange fees for domestic debit transactions, capping them at 4-5 cents per transaction to promote lower costs and entry for new participants.^[24] Concurrently, contactless payment technologies emerged to accelerate transaction processing, with Mastercard introducing PayPass in 2004 and Visa launching payWave in 2007, enabling NFC-based tap-to-pay for low-value purchases without physical insertion.^[25]^[26] These innovations boosted adoption by reducing processing times to under two seconds, integrating seamlessly with existing EFTPOS infrastructure.^[25] During the 2010s, EFTPOS evolved further through integration with mobile wallets and the broader decline of magnetic stripe reliance, driven by widespread EMV mandates that phased out swipe-based methods in favor of chip and contactless alternatives.^[27] Mobile wallet platforms, such as those leveraging NFC for smartphone-based payments, became integral, allowing EFTPOS terminals to accept tokenized transactions from apps like Apple Pay, which debuted in 2014 and expanded globally.^[27] This period also witnessed the rise of real-time payment systems, with over half of central bank innovations focusing on near-instant settlement to enhance liquidity and user experience in retail environments.^[27] As of 2025, recent trends in EFTPOS emphasize advanced security via tokenization, where sensitive card data is replaced with unique digital tokens to prevent interception during transmission, now accounting for about 35% of global transactions and projected to grow further in e-commerce and mobile contexts.^[28] In parallel, QR code-based payments have gained traction as alternatives in select markets, offering low-cost, contactless options integrated with EFTPOS networks for faster in-store and online processing without dedicated hardware.^[29] These developments underscore a continued push toward resilient, efficient systemic changes.^[30]

Implementation in Australia

Historical Context

The establishment of EFTPOS in Australia began in 1984, when Westpac Bank and Woolworths trialled the system at BP service stations, issuing debit cards linked to customers' bank accounts for electronic funds transfer at the point of sale.^[31] This pilot, involving 20 Ericsson terminals, marked one of the earliest adoptions of retail electronic payments globally and was quickly expanded through collaboration among major banks to reduce cash reliance in high-volume retail environments like supermarkets and fuel outlets.^[32] By the late 1980s and into the 1990s, EFTPOS saw rapid nationwide rollout, supported by interbank agreements to standardize infrastructure and ensure interoperability. Monthly transactions grew significantly, reaching over 1 billion by 2004 with an average value of AUD 68, as debit cards proliferated to more than 27 million in circulation.^[33] This period focused on building a domestic network to compete with emerging international schemes, emphasizing low-cost direct debits from bank accounts. The 2000s introduced regulatory milestones, including the Reserve Bank of Australia's (RBA) 2006 reforms, which implemented an Access Regime for open participation and set a zero interchange fee standard for domestic EFTPOS transactions to promote efficiency and competition.^[34] These changes addressed earlier challenges like fragmented processing and merchant adoption hesitancy due to setup costs. In 2009, the industry formed eftpos Payments Australia Limited (ePAL) as a central body to manage and promote the system, enhancing governance and innovation.^[35] During the 2010s and into the 2020s, EFTPOS evolved with contactless capabilities, mobile integration, and the 2021 merger forming Australian Payments Plus (AP+), which unified EFTPOS with other domestic infrastructures like BPAY and the New Payments Platform (NPP). By 2024, EFTPOS accounted for over 80% of in-person debit payments, processing billions of transactions annually and adapting to digital shifts while maintaining its cost-effective model.^[2]^[6]

Usage Patterns and Features

In Australia, EFTPOS has become the dominant method for debit-based in-store transactions, with debit cards accounting for approximately 51% of all consumer payments as of 2022, a figure that has continued to grow due to its low merchant fees compared to international schemes like Visa and Mastercard.^[36] By 2025, cards overall represent over 76% of payments at point-of-sale locations such as supermarkets, fuel stations, and general retail, with debit transactions—predominantly processed via EFTPOS—preferred for their cost efficiency, enabling merchants to avoid higher interchange fees associated with credit cards.^[37] This preference is reinforced by widespread adoption of least-cost routing (LCR), where over 80% of merchants route debit payments through the EFTPOS network to minimize costs, resulting in savings of nearly 20% on average for enabled businesses.^[38]^[39] Key features of EFTPOS in Australia include the cash-out functionality, allowing consumers to withdraw up to AUD 1,000 in cash per transaction at participating retailers such as supermarkets and petrol stations, which enhances convenience in a cash-light economy.^[40] Additionally, regulatory surcharge rules, overseen by the Reserve Bank of Australia (RBA) and the Australian Competition and Consumer Commission (ACCC), cap fees on EFTPOS debit transactions at less than 0.5% of the transaction value, effectively prohibiting excessive extra charges and promoting affordability for users.^[41]^[42] These rules are set to evolve further, with RBA proposals in 2025 aiming to eliminate surcharges entirely on EFTPOS and low-cost debit payments by July 2026.^[43] Consumers commonly use EFTPOS for everyday purchases in retail environments, including groceries, fuel, and general merchandise, where it facilitates quick contactless payments and supports integration with digital wallets like Apple Pay and Google Pay through participating banks.^[44]^[45] This seamless compatibility has driven higher adoption of mobile-based EFTPOS transactions, with over 44% of device-present payments involving mobile wallets by late 2024.^[46] For merchants, EFTPOS offers benefits such as same-day settlement for transactions processed before 9:30 PM Sydney time, improving cash flow by providing immediate access to funds seven days a week and reducing reliance on cash handling, which lowers risks of theft or errors.^[47]^[48] In terms of scale, EFTPOS processes billions of transactions annually, contributing to the broader Australian payments market valued at USD 1.07 trillion in 2025.^[49]^[50]

Network and Security

The EFTPOS network in Australia is operated by eftpos Payments Australia Limited, a subsidiary of Australian Payments Plus (AP+), which was formed in 2021 through the amalgamation of eftpos, BPAY Group, and NPP Australia to streamline domestic payment infrastructure.^[2] This operator manages the central domestic switch that routes debit transactions between issuers and acquirers, ensuring efficient processing for in-store, online, and mobile payments while supporting features like least-cost routing (LCR) and merchant choice routing (MCR) to optimize costs and transaction paths.^[51] Integration with the New Payments Platform (NPP) under AP+ enables real-time capabilities, allowing EFTPOS transactions to leverage NPP's 24/7 instant settlement for enhanced speed and innovation in digital payments.^[52] Access to the EFTPOS network is governed by the Reserve Bank of Australia (RBA)'s Access Regime, implemented in September 2006, which mandates open access to promote competition and efficiency by standardizing connection procedures and capping entry fees for new participants.^[53] This regime explicitly allows non-bank entities, such as payment service providers and fintechs, to connect directly as acquirers or issuers, reducing barriers that previously favored incumbent banks and fostering broader market participation.^[54] Complementing this, RBA standards cap interchange fees at zero for domestic debit transactions, eliminating charges paid by acquirers to issuers to minimize costs and prevent distortions in payment choice.^[34] Security in the Australian EFTPOS system relies on chip-and-PIN technology compliant with the EMV standard, where cards feature embedded chips that generate dynamic authentication codes for each transaction, significantly reducing counterfeit fraud compared to magnetic stripe methods.^[2] A personal identification number (PIN) is mandatory for EFTPOS transactions exceeding AUD 100, particularly for contactless payments, while lower-value taps under this threshold often proceed without PIN entry for convenience; signatures have been fully phased out since 2014 in favor of PIN or chip verification across debit and credit cards.^[55] Additionally, eftpos employs AI-driven fraud monitoring through a real-time machine learning engine developed in partnership with Featurespace, which analyzes transaction patterns to detect anomalies and prevent unauthorized activity, particularly in online and card-not-present scenarios.^[56] EFTPOS terminals and infrastructure must adhere to the Payment Card Industry Data Security Standard (PCI DSS), a global framework requiring encryption of cardholder data, secure network configurations, and regular vulnerability assessments to protect sensitive information during transmission and storage.^[2] Compliance involves annual audits and self-assessments for merchants and service providers, with levels determined by transaction volume—higher-volume entities undergoing external Qualified Security Assessor (QSA) reviews—to ensure ongoing adherence and mitigate breach risks.^[57]

Implementation in New Zealand

Historical Context

The establishment of EFTPOS in New Zealand began in 1985, when the Bank of New Zealand launched the system through a pilot program at Shell petrol stations, issuing debit cards to enable electronic funds transfer at the point of sale and reduce reliance on cash.^[58] This initiative marked the region's early adoption of electronic payments, focusing on high-volume locations like fuel outlets to test reliability and customer acceptance. By 1989, the system had achieved nationwide rollout, supported by collaborative efforts among major banks to form Electronic Transaction Services Limited (ETSL), a consortium designed to oversee network operations and prevent the Bank of New Zealand's potential withdrawal due to initial operational costs.^[58]^[59] In the 1990s, EFTPOS expanded rapidly through bank-led collaborations, with monthly transactions surpassing 1 million by 1990 and the establishment of the Paymark network in 1989 to facilitate efficient transaction switching across participating institutions.^[60]^[61] This period saw the formation of oversight mechanisms, including early governance structures that evolved into PaymentsNZ by 2010, ensuring standardized rules and interoperability for domestic debit payments.^[62] Integration with international schemes like Visa Debit began in the mid-2000s, with the first issuance by Westpac in 2006, allowing EFTPOS terminals to process a broader range of debit cards while maintaining the domestic network's low-cost model.^[63] The 2000s brought challenges to EFTPOS growth, including slower adoption in certain retail sectors due to merchant fees that, while lower than international credit card rates, were perceived as high relative to the system's efficiency gains.^[60] These issues were mitigated in the mid-2000s through the introduction of Visa Debit cards and efforts to streamline processing, coinciding with boosting overall electronic payment volumes, including a milestone of the five billionth EFTPOS transaction that year.^[64]^[65] During the 2010s, EFTPOS solidified its position through the dominance of the Paymark network, which handled approximately 75% of transactions by the late decade, reflecting banks' ongoing collaboration to enhance infrastructure and security.^[66] This shift underscored New Zealand's unique voluntary bank consortia model, driving EFTPOS to process billions in value annually and maintaining its role as the preferred domestic payment method.^[60]

Usage Patterns

In New Zealand, EFTPOS has achieved near-universal adoption in the retail sector, accounting for a significant majority of debit card payments, with 62-74% of consumers preferring debit/EFTPOS for everyday spending across age groups as of 2024, and serving as the primary method for in-person transactions at point-of-sale terminals.^[67] This dominance is particularly evident in supermarkets, where physical card payments, including EFTPOS, handle the majority of everyday grocery purchases due to their speed and reliability for high-volume, low-value items. Similarly, in the hospitality industry—encompassing restaurants, cafes, and bars—EFTPOS supports contactless payments, with 88% of consumers using them at least sometimes as of 2024, reflecting its integration into fast-paced service environments where quick processing minimizes wait times.^[67]^[68]^[67] A key feature of EFTPOS in New Zealand is the availability of a cash-out option at most retail terminals, allowing customers to withdraw cash during purchases, which is more common than in some other markets.^[69] However, contactless payments are widespread, allowing transactions under NZD 200 without requiring a PIN entry, enhancing convenience for small-value purchases in daily retail scenarios. For online commerce, EFTPOS integrates seamlessly with systems like POLi and Online EFTPOS, enabling consumers to authorize payments directly from their bank accounts via mobile apps, bypassing card details and reducing fraud risks in e-commerce.^[70]^[71]^[72] Consumer habits strongly favor debit-based EFTPOS over credit cards, with 62-74% of users across age groups preferring it for everyday spending to avoid merchant surcharges and interest fees associated with credit options. This preference stems from EFTPOS's low or zero interchange fees for merchants, which are passed on as no additional costs to consumers, promoting its use for budgeting and routine expenses.^[67] Many banks further support this trend through mobile app linkages, such as ASB Mobile and Westpac's Online EFTPOS, where users approve transactions in real-time via app notifications, blending traditional EFTPOS with digital banking for enhanced accessibility.^[73]^[74] Market integration underscores EFTPOS's scale, with annual electronic card transactions exceeding 2 billion in volume as of the year ended March 2025, predominantly processed through networks like Worldline (formerly Paymark), which handles approximately 70% of the nation's payment traffic.^[75]^[68] This high throughput supports its role in diverse transaction types, from micro-payments in hospitality to bulk retail buys, while ongoing innovations like app-based approvals ensure sustained consumer loyalty amid rising digital wallet competition. As of July 2025, the Commerce Commission introduced interchange fee regulations, reducing caps for domestic transactions from December 2025, and a ban on surcharges for in-person card payments effective 2026, aimed at lowering costs and promoting EFTPOS over higher-fee international schemes.^[76]

Implementation in Other Regions

Singapore

In Singapore, the Network for Electronic Transfers (NETS) was established in 1985 as a consortium of major local banks, including DBS Bank, to promote cashless payments through electronic funds transfer.^[77] The EFTPOS service was piloted in June 1985 with 10,000 ATM cardholders and 39 retail outlets before its full public launch in January 1986, enabling debit transactions at point-of-sale using bank-issued ATM cards.^[78] By the 1990s, NETS had expanded its EFTPOS network through deepened bank partnerships, integrating with more merchants and supporting broader retail adoption while maintaining a focus on secure debit-only processing to reduce cash dependency in a rapidly urbanizing economy.^[79] NETS EFTPOS primarily facilitates debit payments for everyday essentials, such as fuel at petrol stations like Shell and Caltex, where users tap ATM or debit cards for quick transactions.^[80] It is also integrated with public transport systems via contactless options like NETS FlashPay cards, which are compatible with EZ-Link infrastructure for fares on buses, MRT, and LRT, allowing seamless tapping without separate tickets.^[81] This debit-centric model emphasizes low-value, high-frequency uses in high-density urban settings, with over 130,000 acceptance points supporting contactless limits up to S$200 as of 2025.^[82] In the 2010s, NETS advanced mobile EFTPOS capabilities to adapt to smartphone proliferation, launching NETSPay in 2017 as a digital wallet app for QR code-based consumer payments at merchants.^[83] For merchants, mobile acceptance was bolstered through solutions like NETS SoftPOS and a 2016 partnership with Mint Payments for mPOS devices, enabling smartphone-based card reading and transaction processing without traditional terminals.^[84] By 2025, while NETS EFTPOS remains integral with over 130,000 acceptance points for legacy terminals in retail and transit, its usage has declined amid competition from real-time schemes like PayNow, which handled billions in peer-to-peer and business transfers annually, shifting preferences toward app-based instant payments. NETS continues to serve as a foundational debit network, particularly for contactless essentials, but invests in QR integrations like SGQR to sustain relevance in Singapore's evolving digital ecosystem.^[85]

United Kingdom

In the United Kingdom, early efforts to implement Electronic Funds Transfer at Point of Sale (EFTPOS) began in the 1980s through bank-led pilots, such as Barclays' trial in the mid-1980s, aimed at enabling direct debit transactions at retail points.^[86] However, intense competition among major banks led to fragmented development, with institutions pursuing proprietary or rival schemes rather than collaborating on a unified national system. By the late 1980s, the launch of the Switch debit network in 1988 by several clearing banks represented a partial step toward standardization, but ongoing rivalry with international networks like Visa prevented the emergence of a cohesive domestic EFTPOS infrastructure into the 1990s.^[87] Adoption of pure EFTPOS remained minimal, as the system evolved into broader debit card usage routed through Visa and Mastercard networks, which offered greater interoperability. Barclays' Connect card, introduced in 1987 as the UK's first debit card, exemplified this shift, allowing immediate account debits at points of sale and quickly gaining traction with over one million issued within nine months.^[88] Contactless payments via Near Field Communication (NFC) further accelerated this evolution, starting with Barclaycard's OnePulse in 2007 and becoming widespread in the 2010s, with over 66% of consumers using contactless cards by 2017.^[89] Today, debit cards dominate non-cash retail transactions, accounting for more than half (around 52%) of all payments as of 2024.^[90] Key challenges to standalone EFTPOS included high implementation costs for terminals and networks, coupled with consumer and merchant preferences for credit cards and cheques, which were more established for deferred payments. These factors drove integration with global card schemes rather than isolated domestic EFTPOS development, as banks sought to leverage existing international infrastructure for efficiency.^[87] In its current role, EFTPOS persists residually in sectors like fuel retail, where pre-authorization via point-of-sale terminals ensures payment before dispensing, but it is largely overshadowed by the rise of Faster Payments, which processed over 5 billion transactions in 2024—second only to debit cards—and now represent over 50% of business payments through instant account-to-account transfers.^[90] By 2025, card-based debit continues to lead at 64% of total payments when combined with credit, yet Faster Payments' growth signals a broader shift away from traditional EFTPOS toward real-time alternatives.^[90]

References

[1]
[PDF] Discussion Paper: Options for EFTPOS Interchange Fee Reform
Electronic funds transfer at the point of sale, or EFTPOS, was introduced in Australia in 1984. The EFTPOS system allows any financial institution's debit cards ...<|control11|><|separator|>
[2]
eftpos Australia - Australian Payments Plus
eftpos is Australia's debit card network, committed to cost-effective, secure and reliable payments for businesses and consumers. Cost-effective payments.
[3]
The Definitive Guide to EFTPOS in NZ
Jun 1, 2025 · New Zealand was an early adopter of EFTPOS technology. The first EFTPOS pilot launched in 1985 – Bank of New Zealand trialed the system at Shell ...
[4]
Retail payment system | Ministry of Business, Innovation ...
Sep 19, 2025 · Card payments are the most common payment method in New Zealand and comprise of debit (including EFTPOS) and credit card payment products. The ...
[5]
[PDF] Payments System Board Annual Report 2023
Sep 15, 2023 · The Australian payments system is changing rapidly with new technologies and participants providing more payment options to consumers and ...
[6]
[PDF] The Retail Payment System in New Zealand - Commerce Commission
Dec 8, 2023 · similar to EFTPOS cards. In New Zealand, EFTPOS, VISA and Mastercard debit cards enable retail payments directly between bank accounts ...
[7]
Trends in Payments, Clearing and Settlement Systems | RBA
In 2019/20, Australians made around 560 electronic transactions on average, compared with 250 a decade earlier. By contrast, the use of cash and cheques has ...
[8]
EFTPOS (Electronic Funds Transfer at Point of Sale) - Moneysmart
EFTPOS is an Australian network for processing credit cards, debit cards and charge card payments at the 'point of sale'.
[9]
What is EFTPOS? - NAB
EFTPOS stands for Electronic Funds Transfer at Point of Sale. It's the electronic payment system that lets your customers make purchases using a debit card, ...What Is Eftpos? · Eftpos Vs. Visa: What's The... · Advantages Of Eftpos...
[10]
Reasons for the Decision to Designate the EFTPOS Payment System
The cardholder authorises the transaction by entering a personal identification number (PIN) into a terminal at the point of sale. The system was built as a ...Missing: authorization | Show results with:authorization
[11]
ATM withdrawals, debit card transactions at the point of sale and the ...
Apr 4, 2014 · Debit cards are employed for cash withdrawals at automated teller machines (ATMs) and for purchasing transactions at point-of-sale (POS).
[12]
How EFTPOS Transactions Work | Zeller
Jun 4, 2023 · EFTPOS transfers funds from a customer's bank to a merchant's account. The machine connects networks to verify funds and cardholder identity.How Eftpos Transactions Work... · The Rise Of Eftpos · How Do Eftpos Transactions...
[13]
https://www.myzeller.com/au/blog/how-eftpos-transactions-work
[14]
How EFTPOS works? - Tyro
When a customer inserts, swipes, or taps their card on an EFTPOS machine, their payment request is sent to the business' acquiring bank, for example, Tyro.
[15]
What is EFTPOS and How Does it Work? | Smartpay Blog
How Does EFTPOS Work? · Step 1: Payment · Step 2: Processing · Step 3: Settlement.
[16]
3. Dual-network debit cards and least-cost routing | Review of Retail ...
Online payments functionality is currently being enabled for eftpos, which raises the possibility of LCR in the online (or 'device-not-present') environment.
[17]
Transaction Error Messages - Troubleshooting Guide - Help Centre
If a transaction is not allowed in Offline Mode the terminal will decline the transaction and show an error message, either: 'Declined', 'Invalid offline ...Missing: domestic switches routing clearing
[18]
Electronic Point-of-Sale Payments | Federal Reserve History
Sep 25, 2024 · The origins of the Visa network, for example, trace to 1958 when Bank of America launched BankAmericard in California. Bank of America began ...Missing: EFTPOS 1980s
[19]
How debit cards changed our lives - ADP ReThink Q
Feb 1, 2022 · Only a handful of banks had issued debit cards during the 1970s, and generally banks were not enthusiastic about promoting POS terminals.
[20]
https://rethinkq.adp.com/history-debit-cards/
[21]
Search | Catalogue | Sainsbury Archive
... EFTPOS pilot scheme outlining the key recommendations. EFTPOS (Electronic ... EFTPOS press cuttings. 1978-1980. Press cuttings relating to EPTPOS ...<|control11|><|separator|>
[22]
[PDF] \J erTpfJ\ - Open Research Online
May 15, 1996 · EFTPoS' UK in the mid 1980s. This model suggests that before EFTPoS' UK, the banks and retailers operated as single parterships, with only ...
[23]
What is EMV® Chip? | EMVCo
### Summary of EMV Introduction and Impact in the 1990s
[24]
[PDF] Reform of Debit Card (EFTPOS) Interchange Fees - 21 March 2003
Mar 21, 2003 · The applicants have argued that the proposal to eliminate bilateral interchange fees should facilitate access of new entrants to the EFTPOS ...
[25]
The History of Contactless Payments
Sep 15, 2020 · We dive into the history of contactless payments, what they look like now, and what they'll look like in the future.
[26]
History of contactless payments - A timeline | Thames Technology
Dec 6, 2021 · 1995. The world's first contactless payment card for commuters, the UPass is launched by the Seoul Bus Transport Association in South Korea.<|separator|>
[27]
[PDF] Innovations in retail payments - Bank for International Settlements
Over the past decade, a number of innovative developments in retail payments have emerged. Many central banks take an interest in retail payments as part of ...
[28]
We (Really) Can't Stop Talking About Tokenization: A 2025 Update
Jul 17, 2025 · 35% of all transactions are now tokenized, citing extraordinary growth in e-commerce use cases; however, this recent update did not provide the total number of ...Missing: EFTPOS security 2024
[29]
Electronic Funds Transfer Point of Sale (EFTPOS) Terminals ...
Aug 16, 2024 · This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions.
[30]
10 top payments trends for 2025 — and beyond - Mastercard
Dec 12, 2024 · In 2025, bet on blockchain technology to enhance speed, security and efficiency, especially when it comes to B2B and commercial payments.Missing: EFTPOS | Show results with:EFTPOS
[31]
https://australianfoodtimeline.com.au/eftpos/
[32]
EFTPOS | Banking and finance | Te Ara Encyclopedia of New Zealand
EFTPOS (electronic funds transfer at point of sale) machines were first trialled in New Zealand in the mid-1980s but spread rapidly in the 1990s.
[33]
The only way to pay? Charting the history and future demise of Eftpos
Jun 9, 2018 · By 1990, there were more than a million Eftpos transactions every month. A year later, BNZ came back into the fold.
[34]
Paymark Case Study | Mariner7
Eftpos. In 2006, Paymark began searching for a robust performance management programme to replace the company's paper-based system. Heidi Parlane, Paymark's ...Missing: history | Show results with:history
[35]
About Us | Payments NZ
Formed in 2010 by the industry with support of the Reserve Bank, we govern the core payment systems and we work with the industry to lead open banking and the ...<|separator|>
[36]
Debit cards proving popular | RNZ News
Apr 8, 2009 · The debit cards were introduced into Australia in the early 1980s but only appeared in New Zealand in 2006. Westpac was the first to introduce ...Missing: 1990s | Show results with:1990s
[37]
Debit Card Surges In Popularity | Scoop News
Aug 26, 2007 · By world standards New Zealand has been slow to adopt Visa debit cards, which were introduced into the US in the early 1990s and Australia ...
[38]
[PDF] Debit card payments in Aotearoa New Zealand – a brief history
As a result, paying by Eftpos grew quickly to generate the highest use of electronic payments in the world, quickly displacing cheque and cash usage. 1989-2005.
[39]
28% hike in Paymark's eftpos charge puzzles Retail NZ ... - Stuff
Oct 6, 2020 · The company is believed to have about 70 per cent of the eftpos market, with the remainder held by Eftpos NZ, which is owned by Californian ...<|control11|><|separator|>
[40]
RDP 2023-08: The Evolution of Consumer Payments in Australia
Cards accounted for more than 80 per cent of transactions at supermarkets, food retailers, transport businesses, and petrol and service stations. The high share ...Missing: fuel | Show results with:fuel
[41]
eftpos vs Debit Card: Differences, Pros & Business Considerations
Aug 19, 2025 · Debit cards can be used online, overseas, and for mobile wallet payments, while eftpos cards are limited to local, in-person transactions only.Missing: revolving | Show results with:revolving
[42]
Update on availability and enablement of least-cost routing for ...
LCR for in-person transactions is now widely available to merchants and take-up by merchants has increased over 2025. As at the end of June 2025, over 80 per ...Missing: store POS
[43]
eftpos Australia - Australian Payments Plus
Whatever you're selling, we're all over it. Australia's domestic debit network providing choice and competition that benefits business owners and consumers.<|separator|>
[44]
What's the daily withdrawal limit on my Keycard or Debit card?
Keycard limits are AUD$800 (pre-28/7/2008) or $1000 (post-28/7/2008). Debit Mastercard limits are AUD$1000 (pre-9/2/2015) or $2000 (post-9/2/2015). Both can be ...
[45]
Card surcharges - ACCC
Small business, processing less than $1 million in card transactions a year: Debit or eftpos: 0.85% to 2% Credit: 1% to 2%Rules when calculating a card... · When payment without a...
[46]
Credit Card Surcharges in Australia in 2025 - Canstar
Jul 18, 2025 · How much is a credit card surcharge? ; Eftpos: less than 0.5% ; Visa and Mastercard debit: between 0.5% and 1% ; Visa and Mastercard credit: ...
[47]
Review of Merchant Card Payment Costs and Surcharging
Jul 15, 2025 · The Payments System Board has reached the preliminary view that it would be in the public interest to: remove surcharging on eftpos, Mastercard ...
[48]
Card Payments | RDP 2023-08: The Evolution of Consumer ...
Cards accounted for more than 80 per cent of transactions at supermarkets, food retailers, transport businesses, and petrol and service stations.Missing: patterns fuel
[49]
eftpos Australia-Support - Australian Payments Plus
eftpos support includes Merchant Choice Routing (MCR), eftpos Hub, eftpos Settlement Service (eSS), and support for digital wallet payments.
[50]
Retail Payments October 2024 - Reserve Bank of Australia
Dec 9, 2024 · In October 2024, 44% of device-present transactions were mobile wallets, 54% contactless cards. Total card purchases were $87.0 billion, with ...
[51]
Smart EFTPOS terminal - CommBank
Same day settlement is available on all EFTPOS transactions made before 9.30pm (Sydney/Melbourne time) and all eCommerce transactions made before 5:30pm ( ...
[52]
Same day settlement - BankSA
Improve cash flow. Get your EFTPOS funds settled and get access on the same day, 7 days a week.
[53]
Australian Payments Plus - Home
In 2024, 1.6 billion transactions flowed through (read more). 30 April 2025 ... eftpos Australia and NPP Australia into one consolidated entity to shape (read ...Eftpos Australia · AP+ product roadmap - 2024 · Careers · News & updates
[54]
Australia Payments Market Report | Industry Growth, Size & Forecast ...
Sep 8, 2025 · The Australia payments market size is USD 1.07 trillion in 2025 and is forecast to reach USD 2.29 trillion by 2030, expanding at a 16.44% CAGR.<|control11|><|separator|>
[55]
Backgrounder on Least-cost Routing | Explainer | RBA
In Australia, around 85 per cent of debit cards are 'dual-network' debit cards (DNDCs), which allow domestic payments to be processed by either eftpos (the ...
[56]
NPP/Australia's Payment Future - Australian Payments Plus
The NPP is Australia's fast payments infrastructure, bringing certainty and efficiency to payments – and setting Australia up for the digital future.The NPP · Fees & pricing · Find an institutionMissing: structure integration
[57]
Access Regime for the EFTPOS System - April 2006
The objective of this Access Regime is to promote competition and efficiency in the Australian payments system, having regard to:.Missing: open non-
[58]
[PDF] Review of the Impact of Australian Payments Reforms
Mar 3, 2011 · The interchange fee for EFTPOS must be between a specified floor and a specified ceiling (between 4 and 5 cents per transaction paid by the ...
[59]
Background | A Revised Interchange Standard for the EFTPOS System
The EFTPOS system allows cardholders to swipe their card through a terminal at the point of sale and verify the transaction using a personal identification ...
[60]
Tap and Pay - CommBank
Not only can you use the CommBank app to tap and pay, you can also choose from our range of digital wallets – like Apple Pay, Google Pay or Samsung Pay. Plus, ...<|separator|>
[61]
eftpos flicks the switch on world-class AI anti-fraud technology
Nov 30, 2021 · Powerful new AI-driven anti-fraud capability was today switched on by Australia's sovereign domestic debit payments scheme, eftpos.Missing: PIN chip- EMV
[62]
How to Prove PCI Compliance | Zeller
May 9, 2021 · The 12 requirements you need to achieve and maintain in order to be PCI compliant for your annual audit can be categorised under six broader goals.
[63]
[PDF] Consumer Research 2024 - Payments NZ
“Being charged a percentage surcharge or additional a fee to use. payWave which is ridiculous consid- ering it's no different than using a debit or eftpos card.
[64]
What is EFTPOS and How Does it Work in New Zealand?
EFTPOS History. From its humble inception at Shell stations in 1985, EFTPOS eventually gained wider popularity and New Zealanders adopted the new technology ...
[65]
https://www.comcom.govt.nz/__data/assets/pdf_file/0030/321699/Retail-Payment-System-Debit-card-history-July-2023.pdf
[66]
Online EFTPOS - Worldline
To pay, customers simply enter their mobile number and select their bank on your payments page, then they approve the payment on their mobile banking app.
[67]
What is online EFTPOS? - POLi
Online EFTPOS is similar in some ways to POLi, in that it is a system which facilitates an account-to-account transfer from a customer to a merchant using ...
[68]
Bank fees and financial system efficiency
May 4, 2022 · EFTPOS transactions are free in New Zealand, while payments using scheme cards involve interchange fees, which are charged per transaction ...<|separator|>
[69]
Online EFTPOS and ASB Mobile - Secure online payments with your ...
With Online EFTPOS you can purchase from some of New Zealand's favourite websites using only your mobile with the ASB Mobile banking app.
[70]
Annual value of electronic card spending in New Zealand - Figure.NZ
This data forms the table Electronic Card Transactions - Value and number of transactions by division and industry (Annual) 2001–2025. Dataset originally ...Missing: Paymark | Show results with:Paymark<|separator|>
[71]
Exploring NETS in Singapore - Finofo
History. NETS was established in 1985 as a joint venture between Singapore's major banks, designed to provide an electronic alternative to cash and checks in ...
[72]
Our Heritage: The History Of GIRO & NETS ... - DollarsAndSense.sg
Sep 24, 2024 · The NETS payment scheme was officially launched island-wide in January 1986. It allows about 1.3 million ATM cardholders to make transactions ...Missing: 1980s | Show results with:1980s
[73]
[PDF] Payment systems in Singapore - Bank for International Settlements
The development of Singapore as a cashless society was boosted by the introduction of the EFTPOS service by NETS in 1986. EFTPOS is a debit card system ...
[74]
NETS Motoring Card - Singapore
Where can I purchase? How can I top up? Petrol Stations. Shell CaltexNETS App · Online payments · Motoring payments · Ways to pay
[75]
NETS FlashPay
Get more convenience with NETS FlashPay – the multi-purpose stored value card for trips on buses, MRTs and LRTs and shopping at retail stores.
[76]
Announcements - NETS
Starting 16 July 2025, the NETS Contactless transaction limit will be increased to S$200. You will no longer need to enter a PIN for transactions up to this ...Missing: decline PayNow
[77]
Nets to roll out digital wallet app NetsPay - The Business Times
Sep 12, 2017 · Singapore. NETS will launch a digital wallet in the form of a mobile app called NetsPay next month, through which consumers can create and ...Missing: 2010s | Show results with:2010s
[78]
Mint strikes mPOS deal with Singapore's Nets - Finextra Research
Apr 12, 2016 · Singapore's national payment system Nets is to enter the mPOS business through a partnership with Australia's Mint Payments.
[79]
Payment Systems - Monetary Authority of Singapore
Sep 2, 2025 · The transactions settled via NETS EFTPOS are mainly higher volume lower value retail payment transactions. The participants of the NETS EFTPOS ...Missing: terminals decline
[80]
[PDF] INFORMATION TECHNOLOGY AND CASH
Thus in the UK, EFTPOS has been developed to handle credit card sales at petrol stations, whereas in Belgium, where credit cards are not accepted (apart ...
[81]
Competitive Strategy and the Implementation of a New Network ...
Aug 6, 2025 · This article analyses competrtion and cooperation between UK banks, as they attempted to develop a national syitem jor electronic funds transfer ...
[82]
From the archives: paving the way in tech innovation - Barclays
Mar 25, 2022 · Launching the UK's first debit card in 1987 would help to take Barclays “into the 21st century”, said one senior leader. Barclaycard's launch in ...
[83]
The contactless revolution ten years on: two-thirds of Brits now tap to ...
Sep 1, 2017 · The study of 2,000 consumers in the UK shows that two-thirds (66%) of Brits have used contactless cards to make a payment since they were ...
[84]
None
### Summary of Debit Card Usage, EFTPOS, and Faster Payments Adoption in the UK (2024-2025)