EFTPOS payments are seriously popular in New Zealand, with nine out of 10 Kiwis preferring to pay for things without cash. Today, consumers expect to pay with credit cards, debit cards and mobile wallets all the same. An EFTPOS machine is your golden ticket to smooth transactions and happy customers.
While juggling all your business responsibilities, you might struggle to get your head around these devices. Don’t fret, because we’ve got you covered. In this guide, we’ll talk you through everything you need to know about these nifty machines and how they can help your business.
How Does an EFTPOS Machine Work?
Electronic Funds Transfer at Point of Sale (EFTPOS) is a payment technology that enables transactions that don’t involve cash. It allows funds to travel from your customer’s bank account into yours electronically.
An EFTPOS machine or in-store payment terminal is a device that allows you to process payments by swiping, inserting and/or tapping a credit or debit card or a compatible mobile device, such as a mobile phone or smartwatch with Google Pay or Apple Pay.
Depending on the type of payment terminal and the customer’s choice of payment method, payment transactions are made on the machine to transfer funds from customers to merchants. These machines process payments by communicating over a payment network with the customer’s bank and authorising parties to complete the transaction.
This all takes place in a matter of seconds. When the payment is fully authorised, your EFTPOS machine or in-store payment terminal lets you know and you can carry on with business knowing the funds will be settled to your account.
How to Set Up Your EFTPOS Machine
Worrying about booting up your machine or setting it up to take payments in-store? The good news is that providers like Smartpay will generally configure your device ahead of time. This makes the setup process much easier.
Here’s a quick step-by-step rundown for setting up your terminal:
Unboxing and Powering the Device
- Unbox: When unboxing your device, ensure all the necessary accessories and manuals are included and are in good condition.
- Charging: For wireless models, you may need to charge your device before beginning setup. Simply use the attached cables and connect them to a power source.
- Power on: Turning on your machine is usually done by holding the power button until the screen powers on. Nice and simple!
Connecting the Device - Connect to the Internet: Wired EFTPOS machines connect to the Internet via LAN cables. Wireless models may need to be manually connected to Wi-Fi the first time. Some machines also come with SIM cards that automatically connect to mobile data.
- Connect to payment network: Your device will already be connected to the payment network by Smartpay before it is dispatched to you.
Connecting to the POS System and Adding Features - Connect to point of sale (POS) system: Payments can be streamlined by connecting EFTPOS machines to POS systems. This will help simplify sales, inventory, reconciliation and more. Follow the instructions from your EFTPOS provider to connect.
- Add EFTPOS features: To get the most out of your EFTPOS machine, make sure you’ve customised your setup with extra features. Functions like contactless payments and MOTO can help speed up payment acceptance for your business.
Easier than you thought, right? Now you’re all set to begin accepting payments at your business.
How EFTPOS Transactions Work: A Step-by-Step Guide
Once you’ve completed a quick and easy set-up process for your EFTPOS machine or payment terminal, it’s time to start accepting payments. An EFTPOS transaction consists of three simple steps:
1. Payment
To begin, you’ll either enter the transaction details into your terminal, or they’ll be sent over by your POS system. The customer then presents their payment method using a card or mobile device. Depending on the price point, they may need to enter a PIN.
More modern-minded customers could likely prefer contactless payment methods, which are made by waving or tapping a card or device over the terminal. These methods do not require a PIN for transactions under $200.
2. Processing
Your terminal will then send a payment request to your customer’s bank. The transaction is then approved or declined based on whether the customer has enough money in their account.
Encrypted data is then sent between the payment gateway, the merchant acquirer and the customer’s bank within a few seconds. This data contains the information required for the payment to be completed and funds to be transferred subsequently.
Depending on the type of in-store payment solution you have as a merchant and the customer’s choice of payment method, transaction processing fees are either applied through the monthly payment network fee or per transaction for scheme transactions such as contactless and credit card payments.
3. Settlements
This is an important part for businesses—getting money to land in your account. This process involves your acquirer moving the money into your account, usually within the next business day.
Your acquirer might be your merchant bank for our Long Term Rental customers. For Smartpay Low Cost Tap & Pay customers, we perform this role with seven-day settlements to the bank account of your choice.
How to Perform a Refund on EFTPOS Machines
From time to time, you’ll need to use your EFTPOS machine to process refunds. These steps vary from provider to provider.
For Long Term Rental customers, you can learn more about performing refunds on a Smartpay EFTPOS machine here. For Low Cost Tap & Pay customers using our Android terminal, jump onto this page to learn more.
What If My EFTPOS Machine Isn’t Working?
Any piece of technology can run into problems. If your EFTPOS machine isn’t working, it’s often a quick fix.
Here are a few tips for resolving EFTPOS machine problems:
- Reboot and log on: This troubleshooting technique is a classic for a reason. We recommend this method as your first option when facing issues with your machine. You’ll also need to reboot your machine when updates are downloaded to make sure they’re applied properly.
- Printer jam: If your built-in printer is jammed, your terminal’s ability to process transactions may be affected. This is a common hidden cause of machine issues.
- Updates: EFTPOS providers regularly update their terminals remotely. This is important for regulatory compliance and smooth operations. If your terminal is causing problems, contact your provider and ensure your machine is up to date.
- Network issues: Firstly, just try to disconnect and reconnect to your network. If it’s still not functioning, have a backup connection in place such as a mobile hotspot.
- Battery: Keep that terminal charged! You can also optimise battery usage with tips like using a screensaver when the machine is idle.
Having 24/7 expert support available from your provider is handy if you run into any issues with your EFTPOS machine—our team of experts are always on hand to help our customers.
You can jump into our Help Centre for troubleshooting tips on our S920 and Android payment terminals.
Keep Up on EFTPOS Maintenance Tips
Maintaining your machine is important for avoiding breakdowns and boosting its overall performance. Here are a few simple tips you can use for easy as machine maintenance:
- Regularly dust off your terminal with a microfibre cloth or fine paintbrush.
- Use a cleaning card to get into the card swipe and chip reader slots.
- Inspect cables, plugs and the terminal regularly to identify any maintenance issues or tampering.
- Protect the terminal from falls, spills, grease, dust and overheating as best as possible.
- Be careful when plugging in and unplugging charging and internet cables.
- Always use the correct power supply unit that was provided with your terminal hardware.
Make Business Silky Smooth with Smartpay
If you need a payments provider to handle transactions in your business, Smartpay is the right choice. Our Android and S920 EFTPOS machines are sleek, mobile payment terminals that are designed to keep your payments humming.
With ease of use and multiple connectivity options, you never have to worry about this terminal slowing you down. Best of all, our team of technical experts are on hand 24/7 to handle any problems with your machine.
The benefits of going with Smartpay don’t stop there. With Smartpay Low Cost Tap & Pay, we take complex merchant service fees and stick ’em in the shredder.
We take care of the payment process all the way down to settling funds in your account. Then, we charge a consolidated flat rate, designed to help you save a bundle. Let banks do banking and leave payments to us. Book in a chat with our team of payment specialists today and see how we can lend a helping hand to your business.
Frequently Asked Questions
Do You Need the Internet to Use an EFTPOS Machine?
Your EFTPOS terminal requires a working internet connection to process payment transactions. Having a stable internet connection helps avoid communication errors and time-outs.
EFTPOS terminals connect to the Internet using either a wired (LAN), wireless (Wi-FI) or GPRS (SIM card) connection. Ensure that the connection is reliable and you have a backup method on hand, like a mobile hotspot or built-in SIM card.
Can You Use Your Phone as an EFTPOS Machine?
Certain providers, such as banks, have introduced mobile applications that can be used to accept payments. These apps have limitations and could cost higher merchant fees than EFTPOS machine options.
Also, depending on your mobile phone instead of an EFTPOS terminal means you cannot take payments in instances when you receive a call or are out of battery. Not exactly ideal!
For more information, check out our complete guide to mobile POS systems vs EFTPOS systems.
Can You Charge Customers for Using an EFTPOS Terminal?
In New Zealand, you can “pass on” the cost of accepting credit transactions. The monthly fee to the payment network covers an unlimited amount of insert and swipe transactions for debit cards.
A surcharge is applicable if you accept contactless and credit cards, but there are rules to follow around how a surcharge can be applied. You can read more in our complete guide to surcharging for businesses.
