electronic funds transfer at point of sale


electronic funds transfer at point of sale
= EFTPOS
The automatic debiting of a purchase price from the customer's bank or credit-card account by a computer link between the checkout till and the bank or credit-card company. The system depends on a customer's plastic card, which is ‘swiped’ through a terminal reader machine at the point of sale. This gives authorization and prints a voucher for the customer to sign; alternatively, the transaction may be ratified by use of a personal identification number (the so-called ‘chip and PIN’ system). Transfer of funds to the retailer can take place within 48 hours.

Accounting dictionary. 2014.