The Real Cost of EFTPOS Terminal Rental in Australia

What EFTPOS rental actually costs Australian venues

Most Australian venues still rent their EFTPOS terminals from a bank. It feels cheap on paper — $35–$55 per terminal per month. But the full cost is rarely what it appears when you sign up.

The full monthly breakdown

A typical bank EFTPOS rental agreement includes:

• Terminal rental: $35–$55/month per device
• Transaction fees: 1.5%–2.2% for most card types
• Monthly account fees: $10–$25
• PCI compliance fee: $5–$15/month

Real example: Two terminals processing $60,000/month in card payments at 1.8% = $1,080 in transaction fees + $110 terminal rental + $30 account/PCI fees = $1,220/month, or $14,640/year.

The lock-in problem

Bank EFTPOS rental contracts typically run 3–5 years. Early exit fees of $500–$2,000 per terminal are common. Many venues stay in an expensive contract long after better options became available — simply because they forgot when the contract expires.

Before signing any EFTPOS agreement, ask: What is the early termination fee, and when exactly does this contract expire?

Buying vs renting

Modern Android-based payment terminals can be purchased outright for $400–$800 per device. For a venue paying $50/month in rental, a $600 terminal pays for itself in 12 months — and you own it after that.

The real savings come from the processing rate, not the hardware. A venue processing $80,000/month at 1.3% versus 1.8% saves $400/month ($4,800/year) — regardless of whether they own or rent.

What integrated payments change

The traditional bank EFTPOS model separates your payment terminal from your POS. This means:

• End-of-day reconciliation takes 60–90 minutes manually matching EFTPOS totals to POS totals
• Split bills require manual calculation
• Tip adjustments happen separately to the transaction

Integrated payments — where your EFTPOS and POS share the same system — eliminate the reconciliation step. Payflo customers consistently report saving 1.5–2 hours per night in admin time after switching from bank EFTPOS to integrated payments.

Before your next contract renewal

1. Calculate your current effective processing rate (total fees ÷ total card volume)
2. Get quotes from at least two integrated POS and payment providers
3. Ask about terminal ownership versus rental options
4. Model the 3-year total cost, not just the monthly figure

The bottom line

EFTPOS rental isn't inherently expensive — the processing rate is where most venues lose money. Integrated payment systems typically offer better rates than standalone bank terminals, and they eliminate the nightly reconciliation cost. For most venues, switching from bank EFTPOS rental to an integrated POS saves $3,000–$8,000/year in combined fees and admin time.

Free 30-day trial. payflo.com.au.