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What are the EFTPOS Fees for Small Businesses?

By: Rebecca Lee


Woman at checkout in fashion store paying with credit card. Customer using payment terminal machine. Standing at counter. Buying and shopping for clothes. Bank card graphics are made up.

As we edge ever closer to the projected cashless year of 2026, its becoming more critical than ever before to make the switch to digital payments for business.

If youre a business owner currently accepting cash only, theres a good chance youve either experienced a number of your potential customers simply have to walk out of your store with no way to pay; or to make their way to an EFTPOS machine to withdraw cash before coming back to fulfil a purchase.

As youll agree, this isnt exactly an ideal situation for your customers, and its certainly not doing you any favours with regards to your customer experience.

With that in mind, its becoming increasingly easier to make the switch to accepting digital payments from the likes of credit and debit cards, smartphones, watches and even water bottles with NFC-enabled EFTPOS machines.

In case youre wondering what some of the fees associated with EFTPOS machines and digital payments are, we have some essential information for you below. But first, a little about EFTPOS and why you should consider it.

What is EFTPOS and What Does it Mean?

To begin, EFTPOS is simply an abbreviation for Electronic Funds Transfer at Point of Sale. This is a payment system which enables a customer to purchase with your business directly through their bank accounts by using either a debit card, credit card, smartphone, smartwatch or just about any other smart device.

As these devices become more and more readily available, its a good idea to begin accepting payments from them.

What are Card Readers and EFTPOS Machines?

In short, these EFTPOS machines or card readers are devices that securely connect your customer’s devices and credit cards to the EFTPOS payment network.

They connect bank accounts and allow a secure transfer of funds between a consumer’s account to your business’s when it comes time to pay for a good or service, and they are generally instant when it comes to the approval process.

Several devices now accept payments via EFTPOS and card readers like iPhones and Apple Watch and water bottles and coffee cups from Frank Green, for example.

In all, these machines are your key to accepting payments from customers in the most secure and fastest manner possible.

Are EFTPOS Machines Expensive?

When compared to the cost of the machines in the past, EFTPOS machines of today are far more affordable than their older counterparts and are often supported by payment plans rather than the cost of the device itself.

As a business, you can generally receive an EFTPOS machine from banks, and you will only need to pay the ongoing monthly plan and card fees, which are relatively affordable, especially when you consider the increased number of sales you could see from accepting smartphone and card payments.

In most cases, youll see the fees for these machines resting around $55 a month and an establishment fee added on to this monthly cost.

As were sure youll agree, as a business owner, this is undoubtedly well worth the investment when it comes to competing with other local businesses and accepting as many forms of payment as possible.

You can learn more about the fees associated with EFTPOS machines and card readers by clicking here.

How to Use an EFTPOS Machine

If youve moved forward to having an EFTPOS machine integrated into your businesss payment process, youll want to know how best to use the device.

All youll need to do is have the banks team member set up the solution for you in your store and then have the machine installed in the most effective place for you and your business.

We would suggest having the card reader sitting in the most visible place in your store by the checkout to ensure customers can tell that you accept their preferred method of payment — or have an EFTPOS sticker on your stores entry window or door.

Adding Product and Service Cost

One thing to keep in mind is that you might have to work on adding the cost of a good or service manually if your point-of-sale system doesnt integrate into the EFTPOS machine directly.

This isnt too difficult, and all youll need to do is input the product’s cost into the EFTPOS machine and hit the OK or DONE button and hand over the device for a Tap & Pay customer to check out.

Things to Look Out For in a Card Reader of EFTPOS Machine

If youre entirely new to the card reader business or arent too sure what to look out for in an EFTPOS machine, we have a few parting points to leave you with. These will help make it a whole lot easier for you to choose a card reader for your store.

The Hardware Fees

These are the fees associated with the device or card reader itself. In most cases, with many Aussie banks, youll find that this fee is simply waived and incorporated into the monthly plan’s cost.

These plans are generally as low as $55 a month and up, and they dont often exceed the cost of something like phone plans.

Processing Fees

Another thing to look out for in the EFTPOS market is the processing fees.

Again, these will often depend on the bank youre working with, though, as youll agree, lower fees are almost always best. You should expect to pay around a 1.5 per cent to 2 per cent fee should you go over the agreed number of sales outlined in your monthly plan.

Keep in mind that plans are available that allow a business to make sales of around $3,000 to $20,000+ before youre at risk of paying this additional percentage cost.

Buying an EFTPOS Machine

To end, if youre looking to invest in an EFTPOS machine or a card reader for small businesses, its worthwhile to take a look at some of the products offered by a few of the big banks.

These bring with them a lot of consumer trust and reliability, along with plenty of customer support and fee structures that work best for you.

Whether youre just starting out, or have been in business for decades, there are fee tiers, and sales limits that will work best for you and youre even able to develop custom plans if youre not able to find something that suits you best. 

Published: December 16, 2020

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