Plastic cards have replaced money in our wallets these days. They are so convenient to carry and use. You can practically use them anywhere you go; whether you go shopping or to watch a movie or dine in a restaurant or even traveling by flights, rail or road; you can now flash your gleaming credit or debit card at the counter and you are good to go. There’s no need to carry a bunch of dollars in your wallet or purse and worry about giving your vendors the exact change for their service or good purchased.
If you use your debit or credit card very often then you must have seen that small handset like machines kept on the counter of the stores that swipe your card and generate a receipt. These devices are called EFTPOS (Electronic Funds Transfer at Point of Sale) terminals. EFTPOS terminals are seen in every major mall or every small retail shops. People have realized the importance of having EFTPOS terminals in their establishments as more and more of their customers prefer using plastic cards instead of hard cash.
How do EFTPOS terminals work? Well, it’s not a very complicated process. It’s basically a financial network for processing debit/credit cards or even charge cards at point of sale. In some cases the EFTPOS terminals also allow users to withdraw cash at the time of purchasing products or services through the merchant’s EFTPOS terminal. This is also called as debit card cash back functionality in many countries.
EFTPOS terminals are widely used in developed nations and even developing countries. This system can be found practically anywhere and everywhere. From gas stations to restaurants, hotel resorts to a deli, expensive boutiques to road side clothing stores and many other places. Merchants have started realizing the importance of having EFTPOS terminals at their stores so that they can provide maximum convenience to their customers.
There are three parties involved in EFTPOS terminals process; the customer’s bank or Credit Card Company, the merchant’s bank and the authorizing banks. The process is simple; when the customer’s card is swiped through the EFTPOS terminal, the customer’s bank authorizes the transaction if the card has sufficient funds, then it goes through the authorizing bank to issue the amount to the merchant’s bank and finally the merchant’s bank accepts the amount that has been authorized by the transaction.
Many companies manufacture EFTPOS terminals for small, medium and multi-national businesses. They have various features including debit or credit card processing, IP capability, e-pay mobile phone top-up, multi-merchant solution, Fast transaction processing and much more. If you have a small business then you can go for the basic model of EFTPOS systems. But big businesses use multi-functional terminals to cater to vast variety of customer needs.
As a merchant or a business person, you should always make sure you have the best EFTPOS terminals for your business. They should be reliable as it’s the question of your customer’s money. People do not like to see a malfunctioning EFTPOS terminal and are very skeptical about using their cards in such stores.
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