Introduction:
EFTPOS:
- EFTPOS / Electronic Fund Transfer at point of sale → electronic payment system
- EFTPOS − based on → payment cards – debit + credit cards
- EFTPOS → originated – year 1981, United States
- EFTPOS → rolled out – year 1982
- 0 usage charge → merchants on transactions
- EFTPOS → wide adoption – since 2002 (Alzamel, 2001)
- EFTPOS → contributed to ↑ merchant revenue
- EFTPOS → invented dream – cashless society
- ↑ use rate → by 77% in 2016
- Acceptance criteria → all card types – Master cards + Visa cards + Amex cards + Australian cards + Credit Union cards
Hook: ↑ EFTPOS terminals → 60% ↑ EFTPOS terminals +↓ use of ATM’s – observed - cash usage →73% - in year 2005, 59% - in year 2013, 43% - in year 2018
(Howells & Hine, 1992)
Thesis: The report focuses at describing advantages and increased usage ratios of EFTPOS devices for the transaction purposes along with delineating some of its benefits on merchant’s business.
Body 1
Topic Sentence: This phase of report describes about for which type of transactions EFTPOS device was designed along with some ways the system can help society and merchants in making hassle free transactions.
Causes:
- Retail transaction → ↑ $100,00
- Individuals – requiring multi- functional terminal
- One + more terminals / site
- Prevention → bad debtors + frauds (Hine, 1991)
- ↑ business – sales → main motive of merchants
Effects:
- XPOS → ↑ revenue + ↑ food traffic → providing 0 additional cost + automate payment service
- Shift totals → total at day’s end – merchant business
- Pre- authorization → consumer ↑ satisfaction
- Store & Forward → secure transaction data − merchant accounts
- Multi - merchant → multiple merchants – single terminal
- Moto processing → ↑ mail processing + telephone order – transactions
- ↓ payment risk → ↓ bad debt + ↓ frauds
- ↑ security → payments – secure PIN authentication + card’s bar code scanning
- Supports 24*7 service → merchant inquiries (Read, 1989)
Body 2
Topic Sentence: This phase of report describes about various advantages that can be incurred by both merchants and society through EFTPOS transactions along with its impacts on merchant’s business aspects.
Causes:
- ↓ merchant services fees → by zero
- ↑ guaranteed payment → ↑ loyalty
- ↑ customer services demands
- Secure payment + transactions ↑
- ↑ flexible payment options → efficient payment mechanism
- ↑ card usage for ↓ fraudulency
- Convenient transactions → cashless purchase options – customers
- Impulsive buying → increased sales – push customers towards purchase
- Mobilize merchant business → any time transactions
Effects:
- ↑ sales → quick + easy payments
- Proves customer’s loyalty → merchants (Vos, 2000)
- ↑ marketing opportunities → example : ↑ boost revenues + target new customers
- ↑ business management aspects → ↓ merchant costs + ↓ handling cash options
- ↑ protection → revenue streams - ↓ fraudulent transactions / ↑ secure transactions
- ↑ customer satisfaction → ↑ spend - payment by cards + ↑ transaction volumes
- Automated surcharge calculation → select card type + enter amount
- Daily purchase updations → merchant accounts
- ↑ cash flow → merchant account
- ↑ legitimacy + stable business image – competitive market _ customers (McFadyen, 1987)
References:
- McFadyen, E. (1987). Retailers` attitudes to EFTPoS.Retail And Distribution Management, 15(4), 19-20.http://dx.doi.org/10.1108/eb018345
- Read, R. (1989). EFTPOS: electronic funds transfer at point of sale.Electronics & Communications Engineering Journal,1(6), 263. http://dx.doi.org/10.1049/ecej:19890057
- Howells, J. & Hine, J. (1992). EFTPoS: Impact on Channel Relationships.International Journal Of Bank Marketing, 10(6), 38-44. http://dx.doi.org/10.1108/02652329210020330
- Hine, J. (1991). Competitive strategy and the implementation of a new network technology: the case of EFTPOS in the UK.Technology Analysis & Strategic Management,3(4), 397-425. http://dx.doi.org/10.1080/09537329108524068
- Alzamel, I. (2001). Retailers’ experiences with and attitudes toward the Saudi Arabian EFTPoS system.International Journal Of Retail & Distribution Management, 29(4), 188-199. http://dx.doi.org/10.1108/09590550110387980
- Vos, G. (2000). EFTPoS– the engine of the card business. Card Technology Today, 12(5), 14-15. http://dx.doi.org/10.1016/s0965-2590(00)05016-7
