Visa Debit Cards vs Eftpos

The EFTPOS debit card system has been massively popular in Australia for a number of years now. Its convenience and versatility won over millions of fans around the country. However, the more recent emergence of the Visa debit card has exposed some of EFTPOS's shortcomings. In this article we look at the advantages and disadvantages of each.

EFTPOS allows users to use their bank card as a debit card for purchases at over 60,000 outlets around Australia. When a purchase is made it is taken directly from the user's bank account. As well as this, the card can be used to withdraw cash while making purchases and can be used at over 200,000 ATMs around the country.

The EFTPOS system continues to be hugely popular on Australia, though it has more recently been somewhat overshadowed by the Visa debit card. Basically, a Visa debit card combines all the features of EFTPOS with some of the best features of a credit card.

To a large degree the Visa debit card works in the same way as EFTPOS. You can use your card at thousands of retail outlets and ATMs around the country. You can use your card to make purchases and to make cash withdrawals at the point of sale. Like an EFTPOS card, all purchases and withdrawals are charged to your bank account. If you do not have money in your account, you cannot make a purchase.

However, Visa debit cards offer some significant extra advantages. Because they are a Visa card, they can be used to make purchases anywhere that accepts Visa worldwide - that's over 24 million outlets. You can also make withdrawals at ATMs worldwide.

Another distinct advantage of the Visa debit card is that it can be used for online and telephone purchases the same way as a credit card. Your account must have a sufficient balance to cover these online purchases but this is a very convenient feature which EFTPOS does not have.

In fact, Visa debit cards are becoming a popular alternative to normal credit cards. Here too they have a number of advantages. Since they are not a form of credit they do not require a credit check and lengthy application process, and they also cut out the risk of misuse and falling into unwanted debt.

Unlike EFTPOS, Visa debit cards offer good fraud protection. Visa offers 'zero liability' in cases of fraud and unauthorised use when a signature is used. Debit cards do not offer the same level of fraud protection as credit cards but it is certainly an added bonus.

Visa debit cards offer a number of distinct advantages over EFTPOS, especially for people who travel overseas and like to shop online or over the telephone.

For additional information on credit cards or related topics please visit our library of credit card articles.