If you’ve been shopping around for payment solutions lately, you’ve probably seen offers advertising a free EFTPOS machine. On the surface, it sounds like a no-brainer. No rental fees. No upfront cost. Just plug it in and start taking payments.
But as many Kiwi business owners discover, “free” in the payments world often comes with conditions. And depending on how your business operates, those conditions can affect how you get paid, how quickly you get your money, and what types of payments you can accept.
So how do you decide between a free EFTPOS machine and a paid terminal? Let’s break down what to look for, what questions to ask, and how to determine which option truly works best for your business.
There’s nothing wrong with promotional pricing. In fact, competitive pricing is good for business owners. But when evaluating a free EFTPOS machine, it’s important to understand how the provider recovers its costs.
Typically, “free” terminals are often funded through higher merchant service fees and minimum monthly turnover requirements. Instead of paying a rental fee, you may be committing to a percentage-based transaction fee.
For some businesses, especially those with higher average transaction values, that percentage can add up quickly. Over time, you may pay significantly more in merchant fees than you would have paid in rental costs for a traditional terminal.
That’s why the key question is not “Is the terminal free?” but rather “What is the total cost of ownership over time?”
One of the most important differences between some free EFTPOS machine offers and paid New Zealand terminals is settlement timing.
In New Zealand, standard EFTPOS transactions processed through the domestic payment network typically settle overnight. That means funds are usually available in your bank account the next business day, depending on your bank’s processing times.
Some alternative payment models, like free EFTPOS terminals, route transactions through overseas payment networks. In these cases, settlement can take up to three business days before funds appear in your account.
For businesses managing cash flow carefully, especially small retailers, cafés, tradies, or hospitality venues, waiting three days instead of overnight can make a real difference. Payroll, supplier invoices, and daily expenses don’t pause while you wait for settlement.
When considering a free EFTPOS machine, it’s essential to ask:
Cash flow is the lifeblood of any small business, and faster access to your funds can often outweigh the appeal of a “free” terminal.
Another important factor when considering the kind of EFTPOS solution you should choose is what types of payments the terminal accepts.
Some low-cost or free EFTPOS machine models are designed to process contactless (payWave) and credit card transactions only. That means customers must tap their card or device to pay.
While contactless payments are popular and growing in New Zealand, not all customers use payWave. Some still prefer, or are required, to insert their card and enter a PIN, or in certain cases swipe magnetic stripe cards.
Traditional New Zealand EFTPOS terminals typically accept:
If a terminal only accepts contactless and credit transactions, you may unintentionally limit how customers can pay, and that could result in declined transactions or lost sales.
So before choosing a free EFTPOS machine, make sure it supports the full range of payment methods your customers expect.
Some free EFTPOS machine offers come with minimum contract terms, and others may include minimum monthly turnover requirements. If your business doesn’t meet those thresholds, additional fees may apply.
Longer contracts aren’t automatically bad. Stability can be beneficial, however, it’s important to make sure that the terminal is going to do exactly what you need it to during that period.
If something goes wrong with your payment system, you want help quickly.
One advantage of working with a New Zealand-owned provider is access to local support. Being able to speak to a real person who understands the New Zealand payments environment can make a major difference.
Free terminal offers from large international providers may come with centralised or offshore support teams. For some businesses, that works fine, but for others, especially those operating in hospitality or retail, where downtime directly impacts revenue, local assistance is invaluable.
Before choosing between a free EFTPOS machine and a paid terminal, you want to ask the following:
These are practical, important questions, and any reputable provider should be able to answer them clearly.
A free EFTPOS machine can sound appealing, especially for new or growing businesses trying to manage costs. But free should never mean uninformed. The best EFTPOS solution is the one that matches your cash flow needs, transaction profile, and business goals.
At EFTPOS Now, we believe in transparency. As a New Zealand-owned company with over 20 years of industry experience, our approach is consultative rather than one-size-fits-all. We take the time to understand your business before recommending a solution.
Whether that’s a traditional EFTPOS terminal, an integrated POS solution, short-term rental for events, or a long-term arrangement, our goal is to provide clear pricing, reliable settlement, and 24/7 local support.
Because when it comes to payments, what matters most is not whether the terminal is free. What matters is how well it works for your business.
If you’re currently comparing options and want clear, honest advice about what will suit your business best, talk to the team at EFTPOS Now. We’ll walk you through the differences, answer your questions, and help you choose a payment solution that works for today and grows with you tomorrow.
