How does EFTPOS (Electronic Funds Transfer at Point Of Sale) work?

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EFTPOS, Electronic Funds Transfer Point of Sale, refers to the technology that allows a retailer to directly debit a customer's bank account by using a debit card. The debit card, generally the same as an ATM card, is swiped through a reading device just like a credit card. The customer must enter his or her PIN number, generally requested once the amount of the sale has been entered into the EFTPOS device. There are many advantages to using an EFTPOS for the retailer and customer alike. The retailer is paid 'instantly' without having to accept actual cash. Though cash is certainly preferable over credit cards with surcharges, or personal checks that can bounce, there are many security liabilities surrounding the handling of large amounts of cash. Cash must be manually counted by the cashier at the POS, counted again when the register is balanced out, and finally collected by an armed service or personally deposited. With EFTPOS, the money is wired directly into the retailer's bank ... more
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