If you’ve ever been confused about the difference between an EFTPOS card and a debit card, you’re not alone. While both are linked to your bank account and used for everyday spending, there are important differences—especially for businesses managing how payments are accepted and processed.
In this blog, we’ll break it down in simple terms so you can understand what each card is, how they’re used, and what it means for you as a merchant in Australia.
What is an EFTPOS Card?
EFTPOS stands for Electronic Funds Transfer at Point of Sale. It’s a system unique to Australia and has been around since the 1980s. When someone says “EFTPOS card,” they’re typically referring to a bank-issued card that:
- Is linked directly to a cheque or savings account
- Only works within Australia
- Runs on the EFTPOS network (not Visa or Mastercard)
- Is not usable for online or overseas transactions
These cards are often issued by traditional Australian banks like CBA, NAB, Westpac, or ANZ. They’re designed to make in-store purchases and cash withdrawals quick and easy—think of them as local-use cards tied closely to Australia’s domestic payment infrastructure.
EFTPOS cards were once the go-to for everyday spending. But as digital wallets, tap-to-pay features, and online shopping surged, they’ve become more limited in their usage.
What is a Debit Card?
A debit card, on the other hand, is also linked to your bank account—but it’s typically co-branded with Visa or Mastercard. These cards give you the same day-to-day access to your funds, but with far more flexibility.
Here’s what makes debit cards stand out:
- Can be used online, in-store, and overseas
- Work via the Visa or Mastercard network, not EFTPOS
- Fully compatible with Apple Pay, Google Pay, and other digital wallets
- Ideal for both tap-and-go and traditional chip + PIN transactions
Essentially, debit cards combine the convenience of accessing your bank account with the global acceptance of a credit card—without putting you into debt.
Most modern transaction accounts now issue Visa or Mastercard debit cards by default, as banks phase out EFTPOS-only options.
Key Differences Between EFTPOS and Debit Cards
Here’s a side-by-side look to make the comparison crystal clear:
| Feature | EFTPOS Card | Debit Card (Visa/Mastercard) |
| Network | EFTPOS (Australia-only) | Visa or Mastercard (global) |
| Availability | Domestic use only | Worldwide use |
| Online Purchases | Not supported | Fully supported |
| Tap & Go | May be limited (bank/device dependent) | Widely supported |
| Acceptance | Only works where EFTPOS is accepted | Works at most merchants globally |
| Digital Wallet Ready | Rare | Fully compatible |
| Fees for Merchants | Often lower fees | May involve card scheme fees (higher per transaction) |
Why This Matters for Businesses
Understanding the difference between EFTPOS and debit cards isn’t just useful trivia—it has real implications for how your business handles payments.
For example:
- A customer may attempt to pay with an EFTPOS-only card, but if your payment terminal is set to route all transactions through Visa or Mastercard, their payment might be declined.
- On the flip side, Visa/Mastercard debit cards often come with higher transaction fees for merchants due to card scheme charges. This can impact your margins if you’re processing hundreds of small payments per day.
Many Aussie businesses are starting to pay closer attention to how their POS systems process payments—especially as least-cost routing becomes more accessible (we’ll cover that below).
EFTPOS in Australia’s Evolving Payments Landscape
Australia’s payment ecosystem is shifting quickly.
While EFTPOS still plays an important role in the domestic market—especially for budget-conscious shoppers who prefer local cards—the widespread availability of Visa and Mastercard debit cards has made them the more versatile and popular option.
Add to that:
- The rise of mobile wallets
- Growth in online shopping
- The demand for contactless experiences
…and it’s easy to see why traditional EFTPOS usage is declining in some sectors.
That said, EFTPOS isn’t going away. The brand has evolved into eftpos® Australia, and it’s now investing in digital capability—like QR payments and online routing.
What Should Businesses Accept?
If you want to create a smooth checkout experience for customers and stay competitive, the best approach is to accept both EFTPOS and debit card transactions. Here’s what to consider:
- Check your POS setup: Some terminals may default to routing all debit transactions through Visa or Mastercard. Ask your provider if you can enable least-cost routing, which chooses the most affordable network (EFTPOS vs card schemes) per transaction.
- Work with a flexible payment provider: Make sure your payment solution supports multiple payment types and gives you visibility on fees.
- Think about your customers: Some demographics prefer to use EFTPOS to control spending, while others expect full tap-and-go compatibility, mobile wallet support, and global card acceptance.
A well-rounded system ensures you never miss a sale and don’t pay more than you need to in transaction fees.
Know the Difference, Improve the Experience
While EFTPOS cards and debit cards may look similar, they function very differently, especially when it comes to where and how they can be used.
For consumers, understanding the difference helps avoid awkward moments at the checkout. For businesses, it’s about offering the right payment mix, managing fees, and delivering a smooth, modern customer experience.
Whether it’s EFTPOS, debit, credit, mobile wallets, or contactless tap-to-pay—your customers expect options. At Venue Smart, we make it easy for Australian businesses to accept all major payment types, with reliable hardware and transparent pricing.
As a trusted third-party payment processor, we help you stay flexible, reduce fees where possible, and deliver a seamless payment experience for every customer. Chat with the Venue Smart team today to find the right payment setup for your business.