Advantages and Disadvantages of EFTPOS Machine

If you’re thinking of getting an EFTPOS machine, it’s important to understand both advantages and disadvantages. 

EFTPOS machines have become a staple in Australian businesses, ranging from cafes and restaurants to retail shops and markets. They make payments quicker, reduce cash handling, and offer a more professional experience for customers. But like any technology, they aren’t perfect. They come with advantages that can help your business run smoothly and disadvantages that need careful consideration before investing.

Here’s a detailed guide on the advantages and disadvantages of EFTPOS machines to help you make an informed choice.

Advantages and Disadvantages of EFTPOS Machine

Advantages of EFTPOS Machine

Fast and Convenient Payments

One of the most obvious advantages of EFTPOS is speed. POS Transactions are processed in seconds, whether the customer taps their card, swipes, or enters their PIN. For businesses like cafés, restaurants, or busy retail stores, this speed can significantly reduce queues during peak hours.

Fast payment means your staff can serve more customers in less time, which improves turnover and helps keep the business moving efficiently. Customers also appreciate the convenience, as long waits at the counter can lead to frustration and even lost sales.

Some modern EFTPOS machines also allow for contactless mobile payments, including Apple Pay, Google Pay, and other digital wallets. This adds another layer of convenience, especially for tech-savvy Australians who rarely carry cash.

Reduces Cash Handling

Cash management comes with several risks. Counting mistakes, theft, and time spent depositing money at the bank are common challenges. By setting up EFTPOS machines, you can significantly reduce these risks by handling transactions electronically.

With fewer cash transactions, your staff can focus more on customer service instead of balancing the till. It also reduces stress during busy periods, as there’s no need to worry about running out of change or reconciling cash at the end of the day.

Additionally, having less cash on the premises lowers the chance of internal theft or robberies, which can be a concern for businesses operating in high-traffic areas.

Supports Modern Payment Methods

Customers increasingly prefer digital payment options over cash. EFTPOS machines allow businesses to accept a wide variety of payment types, including debit cards, credit cards, tap-and-go, and mobile wallets.

Offering these options not only meets customer expectations but can also increase sales. For example, customers are more likely to make larger purchases if they can pay by card rather than being limited by the cash in their wallet.

For businesses running in competitive areas, not offering modern payment methods can result in lost sales, as customers may choose competitors who do accept cards and digital payments.

Improves Cash Flow

EFTPOS payments are usually deposited directly into your business account within one to two business days. This means you don’t have to handle cash deposits at the bank, which saves time and reduces the risk of mistakes.

Having faster access to funds improves cash flow and helps with managing day-to-day expenses such as paying suppliers, staff wages, and other operational costs. For small businesses or startups, this can be a significant advantage.

Some EFTPOS providers even offer next-day settlement options, which can make cash flow even more predictable and reliable for your business.

Enhances Professional Image

An EFTPOS machine adds a level of professionalism to any business. Customers expect to pay electronically, and having a reliable, modern payment system builds trust.

For cafés, restaurants, and retail shops, being able to accept card payments shows that you’re serious about your business and value customer convenience. This can influence customer decisions, especially for first-time visitors who may be more likely to make a purchase when card payments are available.

It also allows for smoother transactions for large purchases. For example, a customer buying multiple items or paying a big bill can complete the transaction easily without awkward cash handling or needing to visit an ATM.

Provides Transaction Records

EFTPOS machines automatically record every transaction, giving you a complete history of sales. This is invaluable for accounting, managing stock, and tracking performance.

You can generate reports daily, weekly, or monthly to see trends, understand your best-selling products, and identify peak trading hours. This information can help you make smarter business decisions, such as adjusting staff schedules, promotions, or inventory levels.

Having accurate transaction records also makes it easier to handle customer disputes, process refunds, and verify payments, which can improve customer satisfaction and trust.

Disadvantages of EFTPOS Machine

Fees and Charges

One of the main disadvantages of EFTPOS is cost. While they make transactions easier, machines and payment processing come with ongoing fees.

Typical costs include:

• Terminal rental or purchase fees
• Transaction fees per sale
• Monthly or annual service fees

For small businesses with tight margins, these fees can add up quickly, eating into profits. It’s important to research providers and compare plans carefully, looking at both upfront costs and ongoing fees.

Some providers may also charge extra for certain features like online integration, mobile EFTPOS options, or loyalty programs. Understanding these costs upfront helps you avoid surprises later.

Dependence on the Internet or Phone Line

Most EFTPOS machines rely on a stable internet connection or phone line to process payments. If your connection drops, you may not be able to accept card payments until it’s restored.

This can be a major issue for busy cafés, restaurants, or retail shops during peak hours. Some machines have offline modes, allowing limited transactions to be stored and processed later, but these can have restrictions on transaction amounts and batch processing.

For businesses in regional areas, a poor or unstable connection can impact the reliability of EFTPOS transactions, so it’s worth checking coverage before committing.

Technical Issues

EFTPOS machines are technology, which means they can occasionally run into problems. Screens can freeze, printers can jam, or communication with the bank may fail.

If staff aren’t trained on how to handle these minor issues, it can slow service and frustrate customers. For businesses that rely heavily on card payments, technical issues can temporarily halt transactions and affect sales.

Regular maintenance, software updates, and staff training can reduce the likelihood of problems, but they cannot eliminate technical risks entirely.

Security Risks

While EFTPOS machines are generally secure, there is always a potential risk of fraud. Skimming devices, phishing attacks, and cyber threats can target both businesses and customers.

It’s important to use secure networks, regularly update software, and follow best practices to reduce the risk. Customers also expect their card information to be protected, so a breach can harm both your reputation and trust.

Security risks are not a reason to avoid EFTPOS, but they are something every business should actively manage.

Setup and Training Required

EFTPOS machines are not always plug-and-play. Staff need to be trained to operate the machine, process refunds, split bills, and troubleshoot basic issues.

For a small business, this can mean extra time spent on training, especially during busy periods. If staff are unfamiliar with the machine, transactions may slow down, impacting customer experience.

Choosing a system with an intuitive interface and easy-to-follow training can reduce these challenges.

Reliance on Power

EFTPOS machines need electricity to work. During a power outage, card payments may not be possible unless you have a backup battery or generator.

Businesses that are completely cashless need a contingency plan for power interruptions. Some mobile EFTPOS options have internal batteries, but these may only last for a limited number of transactions.

Planning for these scenarios ensures your business can continue operating smoothly, even in unexpected situations.

FAQ: EFTPOS Machines

1. Can I use a mobile EFTPOS machine for events or markets?

Yes. Portable, battery-powered EFTPOS machines connect via mobile data, making them perfect for food trucks, markets, or pop-up stores.

2. Are EFTPOS transaction fees fixed?

Fees vary by provider and transaction type (tap, chip, or swipe). Always compare providers to find the most cost-effective option.

3. How long does it take for money to reach my account?

Typically, funds appear in your account within one to two business days. Some providers offer next-day settlement for faster cash flow.

4. Can EFTPOS machines handle refunds or split bills?

Yes. Modern machines allow refunds, voids, and splitting bills, making them flexible for cafés, restaurants, and retail businesses.

5. Is it safer than handling cash?

Yes. EFTPOS reduces cash handling, counting errors, and theft risks, though it still requires proper security practices to prevent fraud.

Wrapping Up

EFTPOS machines are a powerful tool for modern businesses. They make payments faster, reduce cash handling, improve cash flow, and provide a professional experience for customers. Transaction records and reporting also help you make better business decisions.

On the flip side, fees, technical issues, dependence on the internet or power, and security risks are real considerations. Understanding both advantages and disadvantages ensures you choose a machine that suits your business and avoids unnecessary headaches.

The right EFTPOS machine can simplify operations, boost customer satisfaction, and drive business growth. At POSApt, we offer reliable EFTPOS systems with low transaction fees, along with complete POS solutions to keep your business ahead in today’s competitive market.