Main bank credit cards for EFT-POS units

Press, 24 February 1987, Page 23

Main bank credit cards for EFT-POS units

PA Wellington The four trading banks have announced that their credit cards can be used on EFT-POS (electronic funds transfer at point of scale) machines.

"The familar zip zap sound at shop counters will begin to give way to the quiet efficiency of the EFT-POS terminal,” the banks said in a joint statement

The introduction of credit cards would give EFT-POS a real boost and provide added benefits to customers and retailers, the chairman of the bankers’ association, Mr Bob McCay, said.

Transactions would be completed more swiftly and efficiently.

There will be no need for waits from filing and checking of “hot card” lists and would-be criminals will find passing a fraudulent card far more difficult, he said. Payment and clearance is instant and the retailer’s account continues to be immediately credited using the EFTPOS system. EFT-POS, which is linked electronically back to the bank, automatically records a transaction and checks if a card is “hot.” “Up until now we have

only had debit cards on EFT-POS. With credit cards in the system it will broaden the number of different types of cards accepted to 10 with a total of 2.3 million cards nationwide,” he said.

Credit card use in EFTPOS has been successfully piloted over the last two months, using trading bank staff credit cards.

The increasing popularity of EFT-POS was apparent in the heavy demand for terminals and the weekly rate of transaction.

There are now 1200 terminals operating nationwide making 30,000

transactions a week with a value of $750,000. At the beginning of April, 1986, there were 172 terminals, recording 3500 weekly transactions at a value of $90,000. Service stations are the main outlets, but more recently EFT-POS has been introduced to liquor outlets, restaurants, chemists, fashion stores and — in the near future — food chains.

Some misunderstanding had arisen regarding the free credit period for credit cards used in EFTPOS, Mr McCay said. The free credit period would apply as usual.