Editing EFTPOS (section)

===Contactless smart card===
In the late 2000s, MasterCard and Visa introduced [[contactless payment|contactless]] smart debit cards under the brand names MasterCard [[PayPass]] and Visa [[payWave]]. These payments are made using either electronic payment networks separate from the regular EFTPOS payment networks, or newer EFTPOS with tap sensors, and is an alternative to the previous swipe or chip systems. These networks are operated by MasterCard and Visa, and not by the banks as is the EFTPOS network, through EFTPOS Payments Australia Limited (ePAL).

These cards are based on [[EMV technology]] and contain a [[RFID]] chip and antenna loop embedded in the plastic of the card. To pay using this system, a customer passes the card within 4&nbsp;cm of a reader at a merchant checkout. Using this method, for transactions under a specified limit, the customer does not need to authenticate their identity by PIN entry or signature, as on a regular EFTPOS machine. For transactions over the above limit, PIN verification is required.

The facility is only available for cards branded with the MasterCard PayPass or Visa payWave logos, indicating that they have the system-permitted embedded chip. ANZ launched an ATM solution based on Visa payWave in 2015, where the customer taps the card on a reader installed at the ATM and inserts their PIN to finalise cash withdrawals. Since 2018, these ATMs work with Apple Pay and Google Pay as well, where a customer taps their NFC-enabled phone instead of their card. Bank debit cards and other credit cards do not currently offer a contactless payment facility. ePAL is developing a contactless payment system for debit cards based on EMV technology as well as an extension of debit cards for use for on-line transactions, and a [[mobile payment]] system.<ref>[http://www.eftposaustralia.com.au/docs/annual-reports/annual-report-2011.pdf Eftpos Annual Report 2011] {{webarchive|url=https://web.archive.org/web/20120323232617/http://www.eftposaustralia.com.au/docs/annual-reports/annual-report-2011.pdf |date=2012-03-23 }}</ref> Using contactless debit cards on tap-and-go terminals routes the transaction through the more expensive credit card system instead of the EFTPOS route, adding to the cost to the merchant, and ultimately the consumer.<ref>{{cite web| url = https://www.smh.com.au/business/banking-and-finance/the-hidden-cost-of-the-tap-and-go-boom-20171007-gywcuj.html?_ga=2.230829725.344188306.1520894086-422518476.1516576290| title = The hidden cost of the tap-and-go boom| date = 8 October 2017}}</ref>