In Australia, eftpos refers to both a machine and a network, depending on how it’s capitalized. While eftpos refers to Australia’s local debit card network, which is available on more than 70 million debit cards, EFTPOS (Electronic Funds Transfer at Point of Sale) is a physical terminal used to accept such payments. The eftpos network is one of several payment schemes that EFTPOS terminals can route through, and which scheme your machine uses on any given transaction affects what you pay.

Below, we cover how the eftpos network and EFTPOS terminals work in Australia, the true cost of eftpos for small businesses, and what to look for when choosing a setup that fits your business.

Key takeaways

• Most Australian debit cards work with multiple networks, and which one your terminal uses by default can have a direct impact on your transaction costs.

• The terminal market has moved beyond the big four banks; now, independent and global providers offer flexible pricing and strong software integrations.

• To choose the right EFTPOS machine for your small businesses, consider factors including your transaction volume, physical environment, point-of-sale (POS) software, and contract terms rather than simply the headline transaction rate.

Why does EFTPOS matter for small businesses in Australia?

In Australia, 73% of payments are made via card, which means eftpos acceptance is a baseline for any business taking in-person payments. In addition to accepting eftpos card payments, EFTPOS terminals can also accept debit-card payments from international card networks such as Visa or Mastercard. A terminal that fumbles these cards creates problems that can make you lose repeat customers, particularly in hospitality and retail, where margins are already narrow.

Most Australian debit cards have dual functionality that allows payments to be processed either domestically, via eftpos, or via international networks such as Visa or Mastercard. Historically, many terminals have defaulted to Visa or Mastercard for contactless payments with dual-network debit cards, which typically means higher fees. In recent years, efforts have been made to promote least-cost routing.

Understanding how your terminal routes transactions is one of the simplest ways to reduce your cost of acceptance.

How does EFTPOS work in Australia?

When a customer taps or inserts a card, the terminal reads the card details and sends an authorization request to your payment provider, which then routes it to the relevant network. Here are the basic components of any EFTPOS transaction.

Authorization

First, the customer’s bank verifies that funds are available. Then it approves or declines the transaction in seconds.

Routing

Since a contactless tap often defaults to the international scheme (e.g., Visa, Mastercard), businesses should choose the best configuration for their needs. The eftpos network often carries lower interchange fees, which affects what you pay on every eligible transaction.

Pricing model impact

On a cost-plus or interchange-plus pricing model, domestic routing saves you money. However, on a blended rate, those savings are absorbed by your processor.

Connectivity

Terminals run over mobile data or the internet—either WiFi or Ethernet. Some support both with one as a failover. If your internet is unreliable, pay attention to that redundancy when comparing hardware.

What are the main EFTPOS options for small businesses in Australia?

Australia has a variety of EFTPOS options for businesses to choose from. Here’s how the main ones compare.

Bank-affiliated terminals

CommBank, Australia and New Zealand Banking Group Limited (via ANZ Worldline), Westpac, and the National Australia Bank (NAB) all offer terminal solutions to business customers. Bundling payments with your existing bank simplifies reconciliation and means one fewer supplier relationship to manage. However, bank-affiliated solutions might be less flexible with pricing and slower to introduce new features than independent providers.

Independent and specialist providers

Independent EFTPOS providers offer useful products for small and medium-size businesses, especially in industries such as hospitality, where direct integrations with point-of-sale (POS) software matter. Some providers have positioned themselves as a newer alternative by pairing terminals with business banking and a card product. Their pricing might appeal to lower-volume businesses that seek simplicity without a monthly terminal rental.

Global providers with Australian operations

Global providers that operate in Australia make it easy to accept EFTPOS payments alongside other payment methods. Stripe Terminal, for example, connects physical payments to Stripe’s broader infrastructure. If you’re already using Stripe for online payments or invoicing and you add a terminal, then your in-person and online transactions sit in the same dashboard, along with unified reporting, reconciliation, and payouts.

What are the costs and constraints of EFTPOS for small businesses in Australia?

Pricing in this market can be confusing. Before you sign anything, you need to understand EFTPOS fees and what you’re paying across every line item.

Merchant service fees

Merchant service fees (MSF) are the percentage charged per transaction, and they vary by card. Eftpos, Visa, and Mastercard all charge different rates. Providers that quote a blended rate average the fees across card types. Interchange-plus pricing shows you the actual interchange cost plus the provider’s margin separately, which makes it easier to see what you’re really paying.

Terminal rental or purchase

Providers often charge a monthly rental fee that varies based on factors such as the model. It costs more up-front to buy a terminal outright, but it removes the ongoing fee. Some providers, such as Stripe, sell hardware without a rental model.

Monthly account or service fees

In addition to terminal rental, some providers charge a platform or account fee. These are easy to miss when comparing headline transaction rates.

Minimum monthly charges

Some contracts include a minimum monthly spend on transaction fees. If your volume is low and you don’t hit that minimum, you might have to pay the difference. If the monthly minimum is $500, for example, and your business only has $250 in fees, it pays the $250 difference.

Surcharging rules

Australian businesses can generally pass card surcharges on to customers, but the surcharge can’t exceed your actual cost of acceptance. This is enforced by the Australian Competition & Consumer Commission (ACCC), and if you get it wrong, you might create regulatory exposure. When you pass a surcharge to your customers, you need to know your cost per card type, which is another reason interchange-plus pricing is worth considering over blended rates.

Contract terms

Some providers might lock you in for a set term, such as 12 or 36 months, with early exit fees. The market has moved toward more flexible terms, but set terms are still common with bank-affiliated providers. Understand these terms before you sign a contract.

How do you choose the right EFTPOS setup for your small business in Australia?

There’s no configuration that works for every business, but a few variables narrow the decision. Consider these specific areas.

Transaction volume and average sale value

Flat-rate pricing is simple and predictable, but at higher volumes, an interchange-plus or negotiated rate will often be cheaper. If you’re processing $30,000 or more per month, the difference compounds quickly.

Physical environment

A fixed retail location with reliable internet will likely be fine with a countertop terminal on Ethernet. A café with tableside service probably needs a portable terminal on Wi-Fi. A tradesperson or market stallholder needs something mobile with 4G and a small footprint. Let your workflow and location determine your hardware.

Software integration

If you run a POS system, check which terminal providers integrate directly before comparing prices. A terminal that doesn’t connect to your POS means manual reconciliation, and that cost doesn’t appear in the transaction fee comparison.

Omnichannel operations

If you sell both in person and online, it simplifies reporting, reconciliation, and payouts to have both channels run through the same provider.

Support

Terminal failures and connectivity drops happen, often at the worst possible moment. Check support hours and response times before you sign up.

How Stripe Payments can help

Stripe Payments provides a unified, global payments solution that helps any business—from scaling startups to global enterprises—accept payments online, in person, and around the world.

Stripe Payments can help you:

• Optimise your checkout experience: Create a frictionless customer experience and save thousands of engineering hours with prebuilt payment UIs, access to 125+ payment methods, and Link, a wallet built by Stripe.

• Expand to new markets faster: Reach customers worldwide and reduce the complexity and cost of multicurrency management with cross-border payment options, available in 195 countries across 135+ currencies.

• Unify payments in person and online: Build a unified commerce experience across online and in-person channels to personalise interactions, reward loyalty, and grow revenue.

• Improve payments performance: Increase revenue with a range of customizable, easy-to-configure payment tools, including no-code fraud protection and advanced capabilities to improve authorisation rates.

• Move faster with a flexible, reliable platform for growth: Build on a platform designed to scale with you, with 99.999% historical uptime and industry-leading reliability.

Learn more about how Stripe Payments can power your online and in-person payments, or get started today.