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The customers card is swiped through a card reader and the merchant usually enters the amount of the transaction before the customer enters their account and PIN number. There is usually a short delay while the EFTPOS terminal contacts the server (over the phone lines?) before a message of Accepted or Declined is returned. Often, at peak shopping times (for example the last shopping day before Christmas), the system can become overloaded and the delay will become extended or even timeout.
The EFTPOS system is highly popular in New Zealand and Australia, with terminals at most bars and self-service terminals at 24 hour unmanned petrol pumps for example. EFTPOS could be seen a major driver of a cashless society in these countries. EFTPOS is so wide-spread and so commonly used that it is necessary to advertise "cash only - no EFTPOS" for events or locations where it is not available.
A criticism of the EFTPOS system from a customers point of view are the charges that are levied on every transaction. With fees of around 25 to 50 cents per transaction, it is wise to limit EFTPOS usage, yet there are many many thousands of people in New Zealand and Australia who routinely use EFTPOS for all transactions, no matter how small, presumably spending a high proportion of their incomes on EFTPOS fees.
See Interac.
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