POS vs EFTPOS: What’s the Difference and Which Does Your Business Need?

In this article, we’ll talk about the key differences between POS and EFTPOS, explain how each works, and help you figure out which system makes the most sense for your business. By the end, you’ll have a clear idea of what tools you need to run your operations smoothly and keep your customers happy.

POS, or Point of Sale, is more than just a cash register. It’s a system that manages your sales, inventory, and sometimes even staff and customer data. On the other hand, EFTPOS—Electronic Funds Transfer at Point of Sale—is specifically about accepting card payments. While they overlap in the payment process, they serve very different roles in running a business.

Understanding how each system works, and when to use them, can save you time, reduce errors, and make day-to-day operations easier. Let’s break it down so you can see which one fits your business best.

What is POS?

POS stands for Point of Sale, and at its heart, it’s the system your business uses to complete a sale. Think of it as the hub where everything around your transactions comes together.

A POS system isn’t just a fancy cash register. These days, it’s software (often paired with hardware like tablets, terminals, or touch screens) that helps you:

• Ring up sales
• Track stock and inventory
• Manage customers
• Generate reports on sales trends
• Offer loyalty programs and discounts

Basically, a POS is like the command centre for your business operations at the checkout. It keeps track of all your transactions, your stock levels, and even your staff performance in some cases.

Examples of POS in Action

Cafés and restaurants: A POS system like POSApt can manage orders from the counter or tables, update the kitchen instantly, and integrate with online orders.

Retail stores: A fashion store might use a POS to track sizes, colours, and stock, and send low-stock alerts automatically.

Salons: Bookings, payments, and product sales can all happen through one POS system.

In short, if your business does more than just accept card payments, a POS is usually the smarter choice.

What is EFTPOS?

EFTPOS stands for Electronic Funds Transfer at Point of Sale. It’s the system that allows customers to pay you electronically using their debit or credit card.

EFTPOS is essentially a payment method. You might have seen the terminals at supermarkets, cafés, or shops where you tap, insert, or swipe your card—that’s EFTPOS in action.

EFTPOS has become a staple in Australia because it’s fast, secure, and convenient. Australians love tapping their cards, and now, even phone payments through Apple Pay, Google Pay, and Samsung Pay are often routed through EFTPOS systems.

Key Functions of EFTPOS

• Accepting card payments (credit and debit
• Supporting contactless payments
• Processing refunds or cancellations
• Linking directly to your bank account for transfers

Unlike POS, EFTPOS doesn’t usually handle inventory, staff management, or customer tracking—it’s purely about moving money from your customer to your account.

POS vs EFTPOS: The Core Difference

Now that we’ve defined them, let’s spell out the main differences between POS and EFTPOS in simple terms. POS is broad and operational; EFTPOS is narrow and transactional. They sometimes overlap because modern POS systems include EFTPOS functionality.

Why POS Systems Are More Than Just Payments

Some businesses make the mistake of thinking a POS is just another way to accept payments. That’s only part of the story. A good POS system can actually help your business grow, not just run smoothly. Here’s how:

Inventory Management: A POS tracks every sale in real time, so your stock levels are always up-to-date. No more surprises when a customer asks for an item you thought you had plenty. You can even set low-stock alerts or automatic reordering.

Employee Management: Modern POS systems can log staff hours, track sales per employee, and even help manage rosters. This makes payroll and scheduling way easier, especially in retail or hospitality businesses.

Customer Relationship Management: POS systems often include a CRM module. That means you can store customer details, track purchases, and even send personalised promotions. It’s like having a digital assistant for customer loyalty.

Detailed Reporting: Forget relying on gut feelings. A POS report gives you insights into best-selling products, peak sales times, profit margins, and more. This is gold when planning promotions or expanding your business.

When EFTPOS is Enough

If your business is small, straightforward, and mainly focused on taking payments, EFTPOS might be all you need. Examples include:

• A market stall selling handmade goods
• A pop-up coffee cart
• A small hairdressing service without product sales

With EFTPOS, you can take card payments securely, without investing in a complex POS system. Many EFTPOS terminals today are smart enough to handle refunds, tips, and contactless payments, which makes them ideal for very small setups.

Integration: POS with EFTPOS

Here’s where things get interesting. Most modern POS systems in Australia integrate seamlessly with EFTPOS. That means your POS records the sale, your inventory updates automatically, and the payment is processed via EFTPOS—all in one smooth flow.

This combo is gold for businesses that handle lots of transactions or stock. Your sales data is automatically updated, payments are quicker and more reliable, and customers can pay however they like—tap, insert, swipe, or phone. It’s basically the best of both worlds.

Which One Does Your Business Need?

Here’s the truth: there’s no one-size-fits-all answer. The right choice depends on your business size, complexity, and goals.

Small, Low-Complexity Business: If you’re just starting out or operate a small stall, EFTPOS alone can do the job. You won’t need advanced reporting or inventory management, and you can focus on making and selling your products.

Medium to Large Retail or Hospitality Business: Once your stock grows, or you start hiring staff, a POS system is the better choice. It can handle multiple sales channels, track inventory, and provide insights that help you scale. Adding EFTPOS to the POS is basically mandatory, since customers expect electronic payments.

Mobile or Pop-Up Businesses: Mobile POS systems (like POSApt on a tablet) often include mobile EFTPOS terminals. That means you can sell anywhere—from farmers’ markets to events—without missing a beat.

Online + In-Store Businesses: If you sell online, a POS system with integrated EFTPOS is essential. You’ll want your inventory and sales to sync automatically across platforms to avoid overselling or stock issues.

Things to Consider Before Choosing

Before you grab whichever system looks shiny, consider these:

• Cost: EFTPOS machines are usually cheaper upfront, but POS systems bring long-term value through efficiency.
• Ease of Use: Some POS systems can be complex. Make sure you or your staff are comfortable using it.
• Support: Choose providers with reliable support—downtime at checkout is stressful.
• Integration: If you’re using other tools like accounting software, check if your POS can integrate.
• Future Growth: Even if EFTPOS seems enough now, think about where your business might be in 2–3 years.

Popular POS and EFTPOS Solutions in Australia

To give you an idea of what’s out there:

POS Systems

• POSApt: Ideal for hospitality and retail, offers cloud-based reporting, inventory, and EFTPOS integration.
• Lightspeed: Popular with cafés and restaurants, strong in inventory and customer management.
• Square POS: User-friendly, great for small to medium businesses, mobile-ready.
• Vend: Retail-focused, cloud-based, strong multi-store capabilities.

EFTPOS Terminals

• Tyro: Australian-owned, widely used in hospitality, supports contactless and Apple/Google Pay.
• Pin Payments: Simple, easy setup for online and in-store transactions.
• Commonwealth Bank EFTPOS: Reliable for traditional EFTPOS needs, integrates with most banks.

Many businesses use a combination of POS for management and EFTPOS for payment processing.

Common Misconceptions

Before we wrap up, let’s clear up some myths:

• “EFTPOS is the same as POS.” Not true. EFTPOS is just for payments, while POS handles the whole business operation.
• “POS systems are only for big businesses.” Nope! There are plenty of affordable, scalable POS systems for small businesses.
• “You can’t use EFTPOS without a POS.” True in the sense you can, but combining both is more efficient.

The Bottom Line

Here’s the Aussie-style summary:

• If your business is small and simple, EFTPOS alone can get the job done.
• If you want to grow, track stock, manage staff, and understand your customers, a POS system is the better choice.
• Most modern POS systems integrate with EFTPOS, giving you the best of both worlds.
• Think about cost, ease of use, support, integration, and future growth before deciding.

At the end of the day, the right system is the one that makes running your business easier, not more complicated. And in today’s fast-paced Aussie retail and hospitality world, smooth payments and easy management aren’t luxuries—they’re essential.

Running a business is tough enough without worrying about whether you’re using the right payment tools. Whether it’s POS, EFTPOS, or both, getting it right from the start can save you hours of frustration and let you focus on what you do best: serving your customers.