What is an EFT Pos System Payment? – Desspos Solutions

 

What is an EFT Pos System Payment? – Desspos Solutions

 

An EFT payment, or electronic funds transfer, is any form of electronic money transfer. However, there’s a common misconception that EFT only relates to how you pay for things. We’ve all swiped, tapped or inserted our card into an EFTPOS terminal, but the EFT payment meaning goes far beyond that. Let’s take a look at exactly what EFT is, the different types of payments, and how it all works.

What is an EFT Payment?

As we mentioned, EFT stands for ‘electronic funds transfer’. So, it refers to any payment that’s processed electronically. For example, credit card payment processing is a form of EFT. Buying things online triggers an EFT payment. In the modern world, EFT is the most common way for money to exchange hands, because we’re increasingly moving away from physical cash.

There are plenty of people who don’t even carry cash anymore because the prevalence of EFT payment systems is so widespread. Parking meters around the country are going digital, so even that little collection of coins in your car’s console is becoming obsolete!

Desspos has over 40 years experience in Point of Sale Solutions, we can tailor a point of sale system to your requirements. 

8 Reasons Why Small Businesses Need an Employee Management System in 2022 – Desspos Solutions.

Small businesses are slowly starting to feel somewhat more optimistic, moving from depression to acceptance phase, and adjusting operations to the new economic and public health reality COVID-19 created and rebuilding the damaged businesses.

Many people are still working from home and managers have to keep them active and engaged from afar, but some companies are carefully trying out the “back to office” strategy.

 

When making EFT payments, you’re essentially transferring money from one bank account to another. The accounts don’t need to be from the same bank or financial institution. Essentially, it’s a fast, easy and very traceable way to transfer money. Even if you don’t have a physical receipt for money that you transfer electronically, there is always a digital record on your bank statement and also held by your financial institution.

 

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Electronic funds transfer at point of sale (EFTPOS; /ˈɛftpɒs/) is an electronic payment system involving electronic funds transfers based on the use of payment cards, EFT POS System, such as debit or credit cards, at payment terminals located at points of sale.Electronic funds transfer at point of sale (EFTPOS; /ˈɛftpɒs/) is an electronic payment system involving electronic funds transfers based on the use of payment cards, such as debit or credit cards, at payment terminals located at points of sale.


 

Types of EFT payments

As we touched on earlier, EFT doesn’t just refer to swiping your card while making a purchase. There are actually several forms of EFT payments out there. We probably do them on a daily basis without really thinking about it.

 

Fresh Produce & Butchers Solution

General Features

• Integrated Scales and Scanners with pre-packaged items sold by weight.
• Integrated Eftpos
• Easy to change prices and update all the POS Terminals automatically within a few seconds.
• Mix and Match promotions to package up any number of custom promotions.
• Manage full stock control and easily identify any shrinkage or theft.
• Weekly Specials and Promotions.
• Customer Advertising Displays.
  

 

1. Credit and debit cards

Every time you use a credit or debit card, you’re making an EFT payment. This includes using cards to buy products in a store, online, or even over the phone. While the funds transferred might take a few days to clear, the EFT payment system automatically confirms that funds are available, essentially making the transfer/purchase valid instantly.

 2. ATMs

Using an ATM is a form of electronic funds transfer, even though you receive cash in your hand. This is because the ATM talks to your bank, confirming funds are available before disbursing the cash.

3. Wire transfers

Wire transfers are also electronic, even though the sender may provide cash over the counter at a bank or wire transfer facility. The funds are still transferred electronically so they are available to the recipient, who could be anywhere in the world.

4. Direct deposit/bank transfer

Electronic bank transfers can be used for a wide range of things. Many businesses allow you to pay invoices using direct deposit. Most employers pay their staff using direct deposit. You can even just use it to transfer money to friends and family, or between your own accounts. The process isn’t instant, though, and usually takes 2-3 business days for funds to transfer.

5. Online payment systems

You can use credit and debit cards to purchase products online, but there are other methods as well. Essentially, online payment systems allow for transactions to take place over a secure connection. This might be for online purchases, or even paying invoices online. Desspos Online Payments is one of these systems making it easier for businesses to get paid faster.

How do EFT payments work?

Like most things that we take for granted in our technologically advanced world, there is a lot that happens behind the scenes when making a simple EFT payment in Australia. Plenty of infrastructure and technology supports every type of electronic payment, but mostly it comes down to one key function.

EFT payments require two parties to talk to each other electronically through a designated system. Wherever you have an electronic funds transfer, you have one source sending the money and another one receiving it. During this process, there is also a connection with the sender’s bank or financial institution to confirm availability of funds.

The confusion arises because EFTPOS is also an abbreviation for Electronic Funds Transfer at Point of Sale. This describes a process, rather than an actual system – which Eftpos is.

EFT Payment processing time

The time it takes for funds to transfer from one account to another varies greatly depending on several factors, such as the type of payment and the financial institutions involved. Usually, most transfers occur within 2-3 business days. Even when you use a credit or debit card to purchase something, the funds instantly disappear from your account but may still take a day or two to reach the recipient.

However, many banks and financial institutions are now making it faster to transfer money. For example, some banks use a system called Osko, which helps to speed up the process. Using Osko, if you transfer money to an account that you’ve already transferred to in the past, it can arrive with the recipient instantly. This system uses a PayID rather than BSB numbers, and even allows you to transfer money to people instantly if you know their mobile phone number.

Benefits of Electronic funds transfer

As you can see, the technology around EFT is always evolving. But what is EFT payment’s main benefit? Well, there are a few.

1.         Speed of transactions

Instantly pay for items online, in-store or by phone.

2.         Security

Keep less cash on premises, and carry less cash when doing your business banking.

3.         Record keeping

There’s a record of all EFT payments. Plus, when using a quality POS system, all sales are instantly recording for accounting purposes.

4.         Convenience for customers

It’s safe, easy and convenient to make EFT payments.

5.         More revenue

The more payment options you offer, the more chance you have of increasing sales.

6.         Accuracy

You can’t be accidentally (or deliberately) short-changed when paying electronically.