The Terminal Provider - An Eftpos Company like ours supplying you a terminal

The “Acquirer” Bank – This is the Bank that you have a Merchant Relationship with. They handle your Eftpos and Credit Card Transactions. The Merchant Bank bills the Merchant for Credit card / Visa fees etc each month. The Acquirer Bank doesn’t always have to be the Bank you normally Bank with, money still goes into the bank account at the bank you bank with.

The Eftpos Network – Is the processing centre that handles every transaction from your terminal to your Bank Account. Different banks use different Eftpos Networks

ETSL/ Paymark ASB, BNZ, National, Westpac Eftpos NZ ANZ or National Banks

We can help you with establishing Bank / Network paperwork. We work with the Banks regularly, so we can refer you to the correct person at the Bank. Call us NOW on 0800 KIWI POS (0800 5494 767).

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Simply put, when a merchant swipes a card through their Eftpos terminal the Pin pad encrypts the customer’s PIN and allocates a transaction number. The terminal dials the network and sends information of the transaction – which includes the merchant number, terminal number, transaction number and the encrypted PIN. The network relays the information to the appropriate bank, which in turn accepts or declines the transaction and returns this message to the Eftpos terminal.

At the time the transaction takes place the money is automatically debited from the customer’s account. The merchant however gets all their funds deposited in one lump sum each day (during the settlement window). The eftpos network “hold” these funds until the terminal is settled. On a weekend this could mean that the merchant might not receive any funds until the Tuesday.

ETSL/Paymark operates a 24/7 Help Desk to assist in financial problems for every merchant on their network. Phone 0800 800 996 – Have your terminal number (from any eftpos receipt) handy to enter in the phone, and then follow instructions

Some terminals can do added features - you can increase the value of EFTPOS payments technology to your business by adding extra functions:

2nd Acquirers - Some, but not all, Eftpos Terminal can also process 2 party Acquirers such as these listed below -
FlyBuys, AA Rewards, Greenworld, Placemakers, Amcal, Bartercard, Holiday Rewards and Fuel Cards – such as Fleet Card, Dualcard, Shell, Mobil etc.

Currency Conversion Terminals – Merchants can earn a percentage of the Transaction back - the customer is asked if they want to make the purchase in their own currency at an agreed exchange rate. At present Currency Conversion is for Westpac Merchants – ASK today how you can join this programme.

Customised Logo on receipts - Placing your logo on your EFTPOS receipt helps strengthen your brand image. It delivers a consistent, unified message right in the palm of your customer's hand.

Hospitality Tipping - This feature addresses a specific need in restaurants, making it easy for diners to tip for service on either their EFTPOS debit or credit card. They simply key in the amount of the tip or add it to their receipt before signing. By making tipping easy, customers are more likely to reward service. You can opt to allocate tips to specific staff members or for it to be pooled. A simple automated report gives you a breakdown of tip allocation.

Bar Tabs - With this function, you can open and close a bar tab using your EFTPOS terminal. It offers increased security and peace of mind, as you don't have to retain customer’s cards, worry about the wrong card being returned to a customer or have customers leave without their cards. Authorisation and validity is checked automatically and the details are stored in the terminal.

Front Desk Accounts software - This allows hotel and motel management to open, top up or close an account. You can capture and store a guest's credit card details using the EFTPOS terminal. That way, the validity of the card is checked. You can also choose an amount of the guest's funds to hold on to to ensure payment.

EziPay prepay mobile top-up - With EziPay, your customers can top up their mobile account in your store. A mobile prepay voucher which contains the top-up PIN and instructions is electronically delivered to your EFTPOS terminal and printer. This function allows you to earn revenue, as you get a commission from EziPay, as well as increase foot traffic in your store. And you don't have to invest in any inventory.

Loyalty Cards - Some EFTPOS terminal can accept a range of loyalty cards, including AA Rewards, Fly Buys, Farmers, Q Cards, Shell and Mobil. The loyalty points are electronically transferred to the loyalty card proprietor in a separate transaction from the payment itself.

When you lease an Eftpos Terminal from The KIWI Eftpos Co you lease direct with us, no third party Finance / Leasing companies, This means you only have one point of contact – US. This means we look after you for all your Eftpos requirements, No confusion, no hassles, and a friendly helping hand when you need us.

All EFTPOS users in New Zealand must comply with these standards, which are updated from time to time by the banking institutions and Eftpos Network.

EFTPOS offers you increased revenue, extra security and simpler banking.

New Zealanders are the world's leading users of EFTPOS and many will only deal with businesses that accept EFTPOS payments.

Increased revenue - potential to increase sales by offering your customers a more convenient and secure way to pay promotes impulse buying because there is less need for your customers to carry cash

Better security - reduces the need to keep cash on the premises thereby reducing the risk of theft. This is particularly beneficial to businesses operating late at night or on the weekend. EFTPOS transactions don't bounce, unlike cheques.

Greater business efficiencies - improves cashflow by eliminating the need to provide lay-by, store credit or accept personal cheques, saves you time, money and effort by reducing paperwork and the manual processing of payments.

Easier banking - simplifies end-of-day banking, as there is less cash to count. Reduces bank costs such as cheque and cash handling fees. Money goes into your account overnight rather than over 5-7 days. Electronic transactions reduce credit card transaction fees (less than ‘zip-zap’ fees).

Improved customer service - EFTPOS is convenient - it provides the ability to pay electronically using a card of choice. Reduces the need for your customers to carry cash, making it a safer alternative. Is a safe and secure way for your customers to pay - the transaction is confirmed by a receipt and on bank account statements. Many customers expect you to have EFTPOS. The payment can be authorised quickly via the EFTPOS network saving time for your customer. You can offer your customers cash out facilities.

Added value - some EFTPOS Terminals can provide solutions that give you the option for further added value through loyalty programmes, hospitality tipping, bar tabbing, printing your logo on receipts and more.

The following list is a basic list of Terminology, there is much much more, but those listed are relevant mainly to Terminal Users and has been written in plain English where possible.

EFT- POS - Electronic Funds Transfer – Point of Sale

Acquirer – the institution, or it’s agent, which acquires from the card acceptor the financial data relating to a transaction, and which initiates that data into an interchange system.

Acquirer Bank – The Bank you have your Eftpos facilities with.

EMV - Derived from the initiators Europay, Mastercard and Visa - is a global security standard for the interaction between chip cards and terminals. Chip cards include an electronic chip in addition to the standard magnetic stripe.

3DES - Triple DES - Derived from Triple(3) Data Encryption Standard - is a form of data encryption that scrambles sensitive information such as PIN numbers before sending it to the bank. This provides a high level of security for the transfer of sensitive information.

3DES & EMV - All EFTPOS users in New Zealand must comply with these standards, which are updated from time to time by the banking institutions. The deadline was 1 January 2008, has been extended to June 2008. Disconnections will commence for non compliant terminals (these deadlines were for the ETSL/Paymark network).

ETSL – Electronic Transaction Services Ltd – (Also trades as “Paymark”) - New Zealand’s biggest Eftpos Network, handling approximately 70% of Eftpos functions. Serving Westpac, ASB, BNZ and National Banks customers.

EftposNZ – The ANZ owned Eftpos Network, also serving National Bank customers.

Log On – exchange of authentication information and encryption keys between a terminal and acquiring bank rending the terminal able to process online transactions.

MAC – (Also called Keyset number) – A checksum on a message calculated by the Pin Pad using a secure key (the MAC key). The MAC is then added into the message so the receiver can verify that the message contents have not been tampered since leaving the sender, or to serve as a proof of identity of the sender. Pin Pads cannot be changed on terminals without changing the details with the Eftpos Network.

MACING Error – this occurs when the Pin Pad looses it’s Keyset. The Keyset is the unique numbers assigned to the Pin Pad by the eftpos network which enable it to log on and transact with the bank. If the Pin Pad looses it’s Keyset, the Pin Pad will needs software reloaded and returned to the Eftpos network for a new MAC/Keyset to be loaded.

MANPAN – (Also known as Card Not Present) - Is when an Eftpos Transaction takes place when the Credit Card is not present – The card number is Number is manually entered into the terminal along with the Expiry date, and the transaction takes place.

PED – Pin Entry Device – the secure customer interface module of a payment terminal.

PCI PED – Payment Card Industry PIN Entry Device – a security specification for EFT terminals, designed to secure the PIN information stored in a terminal from fraudulent activity.

Refund Card – A merchant can apply to the Bank for a Refund Card. Not all eftpos merchants are setup for refunds. Security of the refund card can become an issue.

Settlement – the closure and reconciliation of the current transaction batch.

Settlement Window – the times that a Settlement can occur during a 24hr period – for example a business can only “Settle” within the Window time, if a Manual Settlement is not completed by the business by the end of the “Settlement Window time”, then the monies cut to the Bank automatically.
Examples:
A Motel - may choose a time at Noon as all the business from the night before has taken place.
A Restaurant - may choose a time as 1 to 2am, as all the days business has completed.
A Retailer – may choose a time between 4.00pm and 10.00pm. This may cover their shorter hours on a Saturday and Sunday, or a Thursday or Friday late night.

Settlement Cutover – is the process of making the settlement – can only be in the “Window Time” as above. For transactions taking place after a Cutover, the moneys would go into the next days Eftpos Settlement amount. Amounts form banks go weekdays to your account the following day, Saturday and Sunday transactions go to the bank on Monday night . ASB is the only bank that has 7 day a week settlements with money going to your account the next day everyday – ASK How - if you want ASB 7 day settlement banking.

Settlement Inquiry – is the process of making an inquiry of a previous days settlement. For the Restaurant, this may be done the next day after trading each day, as they may still not be in the restaurant at 2am. This can also be used for checking the days trading at a point halfway through the day, done as inquiry on the terminal, not as an cutover.

Switch – central system that receives EFT transactions and forwards then through to one of many acquirers. The Eftpos Network acts as the switch between different Banks and Accounts at each bank.

Transmission Error – A transaction that has not completed due to a communication error, either bad or no phone connection, or a Maccing error on the Pin Pad stopping the terminal from Logging On.

Why are Chip Cards better than magnetic stripes? Two main reasons: At present the information held on a magnetic stripe is able to be fraudulently extracted using devices such as skimming machines. This information cannot be extracted from a chip. Chip Cards have the ability to store more information so that the card and its rightful owner can be confirmed more readily.

Can Chip Cards be used for other purposes? Because of the storage capacity on a chip card there is a wide scope for them to be used for other purposes. This includes loyalty, Medical Records, Visa and Passport information.

Will Chip Cards work on both Eftpos terminals and ATM machines? Yes, to find out more about ATM machines please contact your bank.

Where does EMV™ come from? EMV™ originated in Europe with the credit card companies Europay, MasterCard and Visa but is now a worldwide standard.

Which Eftpos terminals will be affected? Every Eftpos terminal in New Zealand is affected by these new standards.

Is it necessary for me to upgrade if all my Eftpos transactions are done manually? Yes, all devices which process electronic payments must be compliant.

How long before I need to upgrade again? In future regular upgrades of Eftpos equipment and software will be required. – See Upgrade dates above.

Will this change my bank fees? For information on merchant services fees please contact your bank.

What is Liability Shift? This is the shift in liability for a fraudulent credit card transaction. Currently the bank holds this responsibility, however this may be shifted to the merchant if they fail to comply with EMV™. For further information on how this liability shift may affect you please contact your bank.