EFTPOS

Electronic funds transfer at point of sale (EFTPOS /ˈɛftpɒs/) is an electronic payment system involving electronic funds transfers based on the use of payment cards, such as debit or credit cards, at payment terminals located at points of sale. EFTPOS technology originated in the United States in 1981 and was adopted by other countries. In Australia and New Zealand, it is also the brand name of a specific system used for such payments; these systems are mainly country specific and do not interconnect. Electronic funds transfer at point of sale (EFTPOS /ˈɛftpɒs/) is an electronic payment system involving electronic funds transfers based on the use of payment cards, such as debit or credit cards, at payment terminals located at points of sale. EFTPOS technology originated in the United States in 1981 and was adopted by other countries. In Australia and New Zealand, it is also the brand name of a specific system used for such payments; these systems are mainly country specific and do not interconnect. Debit and credit cards are embossed plastic cards complying with ISO/IEC 7810 ID-1 standard. The cards have an embossed bank card number conforming with the ISO/IEC 7812 numbering standard. EFTPOS technology originated in the United States in 1981 and was rolled out in 1982. Initially, a number of nationwide systems were set up, such as Interlink, which were limited to participating correspondent banking relationships, not being linked to each other. Consumers and merchants were slow to accept it, and there was minimal marketing. As a result, growth and market penetration of EFTPOS was minimal in the US up to the turn of the century. In a short time, other countries adopted the EFTPOS technology, but these systems too were limited to the national borders. Each country adopted various interbank co-operative models. In Australia, in 1984 Westpac was the first major Australian bank to implement an EFTPOS system, at BP petrol stations. The other major banks implemented EFTPOS systems during 1984, initially with petrol stations. The banks' existing debit and credit cards (but only allowed to access debit accounts) were used in the EFTPOS systems. In 1985, the State Bank of Victoria developed the capacity to host connect individual ATMS and helped create the ATM (Financial) Network. Banks started to link their EFTPOS systems to provide access for all customers across all EFTPOS devices. Cards issued by all banks could then be used at all EFTPOS terminals nationally, but debit cards issued in other countries could not. Prior to 1986, the Australian banks organized a widespread uniform credit card, called Bankcard, which had been in existence since 1974. There was a dispute between the banks whether Bankcard (or credit cards in general) should be permitted into the proposed EFTPOS system. At that time several banks were actively promoting MasterCard and Visa credit cards. Store cards and proprietary cards were shut out of the new system. In New Zealand, Bank of New Zealand started issuing EFTPOS debit cards in 1985 with the first merchant terminals being installed in petrol stations. In 1996, mobile EFTPOS arrived, with hotels in Kuala Lumpur installing systems in 1997 and the first example of a pizza delivery in Singapore accepting Visa card via cellular payment in 1998 (a collaboration between Signet, Visa, Citi Bank, and Dynamic Data Systems) beginning the rollout of mobile systems in Asia. By 2004 Cellular based Eftpos infrastructure had really taken off, and by 2010 Cellular Eftpos had become the standard for the Global market.