Electronic system aids retailer and customer

Ruapehu Bulletin, Volume 11, Issue 526, 8 March 1994, Page 9

Electronic system aids retailer and customer

A message to retailers ... if you haven't got EFTPOS, you aren't up with the play, and your opposition probably has got it. For those unversed on acronyms, EFTPOS stands for Electronic Funds Transfer at Point of Sale. Here's the scenario: Customer arrives at counter for purchase. Whips out plastic card. Retailer swipes card through card reader, which reads the magnetic strip. Customer punches in PIN number and stands back in wonder. Within seconds, the PIN number is encrypted so it can't be obtained and sent to bank with other information. In a couple of blinks, the bank checks the transaction and the money automatically switches from customer' s bank to retailer' s account. EFTPOS machine says "okay", customer gets goods and receipt and is away. No cash, no fumbling for cheque-books, no looking for a pen, no signing Granny's maiden name on the cheque's reverse side. A customer buying goods with EFTPOS may use either a hole-in-the- wall bank card or a credit card (except supermarkets usually don't take credit cards). EFTPOS benefits all us-

ers - the retailer, the customer, the telecommunications firms, the banks. Advantages for retailers are well catalogued, whether EFTPOS is used to replace cash, cheques or credit cards. Using less cash, EFTPOS eliminates cash handling fees at the bank. Many banks charge around pointtwo percent for cash transactions over two thousand dollars. EFTPOS avoids this costly expense to industries with low net profit figures such as supermarkets. Less cash on-site reduces risk of robbery. Especially during busy shopping periods, build-ups of cash are a security risk to shops. EFTPOS rids the risk of bouncing cheques . The system immediately transfers the customer' s money out of the account into a holding account for the retailer. If the customer' s account doesn' t have the money, the transaction is automatically voided. Although credit cards usually don't require PIN numbers, EFTPOS credit card transactions are guaranteed by the bank as long as the signature on the receipt matches the signature on the card. Expiry dates and hot cards are automatically checked by the system.

EFTPOS greatly reduces labour costs. Cash handling requires balancing, sorting money for banking and physically banking yourself or hiring a security company. Processing cheques and credit cards is time-consum-ing during the sale and afterward, but EFTPOS skips these labour-intensive requirements. The convenience of EFTPOS is a significant customer attraction not having to carry cash. EFTPOS An EFTPOS card gives you access to your accounts 24 hours a day, seven days a week. With a card you can pay for goods and services displaying the EFTPOS sign. It is safer than carrying cash, more convenient than paying by cheque and you may not have to pay retailers' cheque clearance fees. Whai is a PIN? A PIN is a four figure number that together with your card identifies you and allows access to your accounts. It's safe and secure because nobody but you, not even the Bank staff who operate the PIN select unit, know your PIN. The PIN you choose should not be easy to guess. Avoid consecuti ve numbers (eg 1, 2, 3, 4), telephone number and birth date. Whatever PIN you

choose make sure you can remember it. What is EFTPOS? EFTPOS stands for Electronic Funds Transfer at Point of Sale. This means your purchases can be paid for by transferring funds from your bank account to the retailer' s bank account in a few seconds. Retailers with EFTPOS include service stations, supermarkets and dairies. It's safe and easy to use a card for electronic banking because you choose your o wn Personal Identification Number (PIN). What happens with EFTPOS? Your card is passed through an EFTPOS terminal by the saies assistant who enters the value of your purchase. Using a PIN pad you choose which account, cheque or savings , you wi sh to make the payment from and enter vour PIN number. When the transaction has been processed you will be

handed an EFTPOS transaction receipt. Transaction details, including the retailers name will also appear on your next bank statement... it's that easy;

EFTPOS IT!