Electronic Funds Transfer At Point Of Sale (EFTPOS)
Definition - What does Electronic Funds Transfer At Point Of Sale (EFTPOS) mean?
Electronic funds transfer at point of sale (EFTPOS) is a payment system which allows faster and safer digital fund transfers at payment terminals. Using this system, payment terminals located at the point of sale can be used with debit or credit cards for acceptance of payment. This system was devised in the U.S. during early 1980s and became very popular in other countries as well.
EFTPOS is the name of the type of technology, but in Australia and New Zealand it is also the brand name of such a kind of payment system.
Techopedia explains Electronic Funds Transfer At Point Of Sale (EFTPOS)
The EFTPOS system was developed in the 1980s. Many different EFTPOS providers were initially set up, which were not connected to each other, resulting in compatibility issues. Thus, it was not very popular at first, and shops were slow to embrace the idea. However, due to reforms implemented in 2002, the EFTPOS industry has seen significant growth, as the separate systems in the U.S. were merged for more compatibility. This led to more users utilizing this system, thus popularizing it.
However, many countries still have different interbank models, meaning that card use is limited to the borders of that specific country. Some major credit cards are accepted internationally, and in recent years MasterCard and Visa have developed a debit card that can be used at international EFTPOS terminals as well.