EFTPOS
Electronic Funds Transfer at Point of Sale. The system that lets you pay with your bank card at shops. In NZ, EFTPOS transactions are usually free (unlike credit card fees).
EFTPOS stands for Electronic Funds Transfer at Point of Sale. It's the system that lets you tap or swipe your bank card to pay at shops, cafes, and other businesses.
New Zealand has one of the highest EFTPOS usage rates in the world. Unlike many countries where card payments incur fees, EFTPOS transactions in NZ are typically free for the consumer, though merchants do pay a small fee per transaction.
With the rise of contactless payments, most NZ EFTPOS cards now support tap-and-go for transactions under $200. Many Kiwis use EFTPOS for everything from a $3 coffee to weekly groceries.
Why this matters
Understanding EFTPOS matters for budgeting because these transactions show up in your bank feed and can be automatically categorised by apps like Steady. EFTPOS takes the money straight from your account, so there is no balance left to carry and no interest to pay. That, rather than the transaction fee, is the real difference from a credit card.
More Banking terms
Open Banking
A system that lets you securely share your bank data with third-party apps via APIs. In NZ, Akahu provides open banking connections to all major banks. You control what data is shared and can revoke access anytime.
Direct Debit
An automatic payment where a company takes money from your account on a set schedule. Used for power bills, phone plans, insurance. You authorise it once and it happens automatically.
Automatic Payment (AP)
A payment you set up yourself to go out automatically on a schedule. Unlike a direct debit (which the company controls), you control the amount and timing of an AP.
Term Deposit
Money locked in a bank account for a fixed period (3-12 months) in exchange for a higher interest rate. You can't withdraw early without a penalty. Good for savings you won't need soon.
Put this knowledge to work
Steady helps you track, save and grow, with a coach that speaks plain English.