eftpos card vs debit card: what’s the difference and which one should you use?

Choosing the right card for everyday spending or managing business transactions can make a real difference. In Australia, two commonly used cards are eftpos and debit cards. While they might look the same and both pull money from a bank account, they serve very different purposes. Understanding the difference between debit and eftpos cards is essential for making informed decisions, particularly in business contexts.

In this article, we'll go through the differences between debit and eftpos cards and which one is best to use.

Is it EFTPOS or eftpos?

EFTPOS (all caps) refers to the point-of-sale (POS) machines and systems that enable electronic payments using a card, like a debit or credit card, at checkout. It’s a global term that describes the hardware and infrastructure involved in in-store card transactions.

eftpos (lowercase), on the other hand, is a specific Australian debit card system operated by eftpos Payments Australia Ltd. It refers to the actual card network used to process transactions, rather than the physical machines. eftpos cards work only within Australia and are typically linked to savings or cheque accounts.

In short, EFTPOS is the technology at the checkout, and eftpos is the domestic card network that runs on it.

What is an eftpos card?

An eftpos card is mainly used for in-store purchases within Australia. eftpos (Electronic Funds Transfer at Point Of Sale) cards are linked to your transaction account and were originally designed for domestic, card-present payments at physical terminals. These cards don’t connect to global payment networks and, for a long time, couldn’t be used online or overseas.

That said, eftpos launched an online payment solution in 2022. Some merchants now accept eftpos for card-not-present transactions. These typically involve login credentials instead of standard card details. However, usage remains limited. Not all cards are enabled for online transactions, and not all websites support eftpos checkout. So while the capability exists, eftpos is still primarily used for everyday in-person spending.

What is a debit card?

A debit card is a payment card linked to a bank account. It allows users to make purchases in-store, online, and internationally. In Australia, debit cards typically operate on global payment networks like Visa or Mastercard, affording them broad acceptance and features like contactless payments, mobile wallets, and online transaction capability. 

eftpos-only cards are becoming increasingly rare, especially with the continued growth of online commerce. Most Australian banks now issue dual-network debit cards (eftpos + Visa or Mastercard) instead. This allows cardholders to make in-store payments locally using the eftpos network, while still accessing online and international functionality via the global scheme.

Key differences between eftpos and debit cards

It's also helpful to understand how debit cards differ from credit cards. Both can be used online and in-store, often through the same global payment networks. But the key distinction lies in how funds are accessed. Debit cards draw directly from your available bank balance, so you're spending money you already have. Credit cards, by contrast, let you make purchases on borrowed funds, with repayments made later. If you don’t pay the full balance on time, interest charges usually apply.

To help compare at a glance, here’s a breakdown of the main differences between eftpos and debit cards:

Note: Most banks in Australia now issue dual-network debit cards that support both eftpos and Visa or Mastercard. This allows domestic in-store transactions to be routed through the eftpos network, while online and international payments use the global scheme.

Transaction fees and why eftpos still matters to Australian businesses

One of the key reasons eftpos continues to play a role in Australia’s payment ecosystem is cost. For merchants, processing payments via eftpos is often cheaper than using global schemes like Visa or Mastercard. These lower fees can make a meaningful difference for high-volume or small-margin businesses.

The table below reflects the latest average merchant service fees in Australia, as reported by the Reserve Bank of Australia in April 2025¹:

Note: "Device-present" refers to in-person transactions (e.g. tap or chip), while "device-not-present" refers to online or over-the-phone transactions.

While dual-network debit cards give consumers and businesses added flexibility, the ability to route in-store transactions through the eftpos network allows merchants to minimise fees without compromising the customer experience. This is especially relevant for businesses that operate primarily within Australia.

Merchant service fees are made up of several components: interchange fees (paid to the customer’s card-issuing bank), scheme fees (charged by Visa, Mastercard, or eftpos), and acquirer fees (charged by the payment processor). These add up differently depending on the network and transaction type. In many cases, eftpos has lower interchange and scheme fees, making it a cost-effective choice for domestic in-person payments.

However, global networks offer capabilities that eftpos doesn't, particularly when it comes to card-not-present transactions, subscriptions, and international payments. One notable factor is foreign exchange (FX) fees, which can significantly impact margins if not managed well. That’s why solutions like Airwallex Corporate Cards, which automatically route transactions based on type and location, offer the best of both worlds.

Security features: how do they compare?

Security is a key concern for both consumers and businesses. eftpos card transactions are PIN-protected and widely regarded as secure for in-person purchases within Australia. Because eftpos requires both a physical card and PIN, the risk of unauthorised use is low unless both are compromised.

Debit cards, while equally secure in many cases, introduce different considerations due to their broader usage online and internationally. This naturally increases exposure to fraud, particularly for card-not-present transactions. However, debit cards that operate on Visa or Mastercard networks typically come with stronger consumer safeguards, making them a safer choice for higher-value or high-risk purchases.

These protections may include:

• Dispute resolution for unauthorised or incorrect transactions

• Refund support when a product or service isn't delivered

• Purchase protection policies (depending on the bank or card provider)

For merchants, payment processors offer fraud prevention systems such as:

• Real-time transaction monitoring

• Automated fraud detection and blocking

• 3D Secure or biometric authentication for online payments

For consumers and businesses, these safeguards are essential when transacting in digital or cross-border environments. According to the Australian Payments Network, card fraud fell by 11.6% in 2023², a drop attributed to stronger authentication processes and fraud controls.

How Australians are paying today

Over the past decade, Australians have significantly shifted their payment preferences. According to the Reserve Bank of Australia's 2022 Consumer Payments Survey³, cards now account for 76% of all consumer payments, up from 63% in 2019. Debit cards alone make up 51% of transactions. This shift accelerated during the COVID-19 pandemic, when more people moved away from cash and embraced contactless and digital options.

Meanwhile, mobile wallets and wearable devices are quickly becoming the norm. Australians use Apple Pay and other tap-and-go services more frequently than consumers in many other countries, according to Statista⁴. Debit cards have adapted well to this trend, since they often link directly to mobile wallets. This mix of speed, convenience, and security continues to shape how Australians choose to pay.

How do prepaid cards compare to debit cards and eftpos cards?

Adding to the mix is the category of prepaid cards. These cards aren’t linked to a bank account. Instead, a fixed amount is loaded onto the card for use.

Prepaid cards:

• Can be used online and in-store

• Often carry Visa or Mastercard logos

• Provide greater control over spending

They're popular for gifting, budgeting during travel, or teaching teenagers about money. While they function similarly to debit cards, prepaid cards don't draw directly from a bank account, and features such as recurring billing or automatic top-ups may be unavailable. 

Because many prepaid cards are backed by Visa or Mastercard, they work for online purchases and card-not-present (CNP) transactions. These networks allow the cards to be accepted at a wide range of merchants and provide secure processing for local and international payments.

Spending with eftpos and debit cards through Airwallex

Many Australian banks now issue dual-network debit cards that combine eftpos with Visa or Mastercard access. This setup allows in-store payments via eftpos, while enabling online and international transactions through the global schemes.

Airwallex Corporate Cards support this same kind of flexibility. They’re designed for everyday business spending, whether that’s in person, online, or overseas. Depending on the transaction type and merchant setup, payments are routed through the relevant network.

With Airwallex, you can:

• Use a single card for a wide range of payment types

• Support eftpos in-store where available

• Enable secure online and card-not-present transactions

• Set spend limits and view activity in real time

It’s a flexible solution that meets your team’s spending needs today, with room to grow tomorrow.

Debit card vs eftpos card: Which should you use?

There is a clear difference between debit card and eftpos card functionality:

• eftpos is limited to in-person domestic use

• Debit cards work across multiple channels, including online and internationally

Debit cards provide greater flexibility for consumers. For businesses, offering a broader range of payment types can improve the customer experience and drive revenue. Including support for mobile wallets and global card networks is now an expected standard. eftpos usage, by contrast, has declined in recent years as Australians increasingly shift towards digital wallets and online payment methods.

Partnering with providers such as Airwallex allows businesses to keep up with demand and offer smarter, scalable payment solutions.

Why more businesses are choosing Airwallex

eftpos has its place. It’s local, secure, and cost-effective for simple in-store transactions. But most modern businesses need more.

Airwallex combines the control of eftpos with the global flexibility of debit cards, and adds tools that go far beyond both. Businesses can hold and spend in 14+ currencies without forced conversions, saving up to 80% on FX. Like-for-like settlement means you receive funds in the same currency your customers pay in. No hidden fees. No unnecessary exchanges.

Need to scale? Instantly issue virtual cards, set team limits, track every transaction, and keep your accounting synced — all from one platform.

Where traditional debit cards stop, Airwallex starts. Smarter FX, stronger controls, and a payment system built for global business.

Request a live demo today to see it in action.

eftpos vs debit card: Frequently asked questions

Is an eftpos card a debit card?

Not exactly. An eftpos card only works in-store within Australia and do not support online payments or international transactions.

What is the main difference between a debit card and an eftpos card?

The main difference between debit card and eftpos card usage is versatility. Debit cards can be used online, overseas, and for mobile wallet payments, while eftpos cards are limited to local, in-person transactions only. Learn more about the systems behind global debit card usage in our guide to how credit card networks work.

Can a debit card be used as an eftpos card?

Yes. Most debit cards in Australia are compatible with EFTPOS systems when selecting 'cheque' or 'savings' at the terminal. This allows them to function as eftpos cards during in-store transactions.

Can eftpos cards be used for online purchases?

No. eftpos cards cannot be used online or outside Australia. For online and international purchases, a debit card is the better option.

Which is better for international travel – a debit card or eftpos card?

A debit card is more suitable for international travel. Unlike eftpos cards, debit cards are accepted overseas and support global networks like Visa and Mastercard.

What are the disadvantages of an eftpos card?

eftpos cards can’t be used for online purchases or international travel. They also lack many of the consumer protections and security features offered by modern debit cards.

How much does eftpos cost compared to debit card fees?

eftpos is often cheaper for in-store domestic use and may have no fees. Debit card transactions, particularly international or online ones, can carry additional network or foreign transaction fees.

Sources:

1. https://www.rba.gov.au/statistics/frequency/retail-payments/2025/retail-payments-0425.html

2. https://www.auspaynet.com.au/resources/fraud-statistics

3. https://www.rba.gov.au/publications/rdp/2023/2023-08/key-trends-in-consumer-payments.html?utm

4. https://www.statista.com/statistics/1296662/preferred-payment-methods-australia/