If you're starting a new business — or running an old-school cash-only one — there's a question worth asking honestly in 2026: do I actually need an eftpos machine?
The short answer is yes. The slightly longer answer is: yes, and the cost of not having one is much bigger than the cost of having one. Here's the clear-headed version of why, and what your cheapest options actually look like.
Cash Is Now a Tiny Slice of Australian Spending
Cash usage in Australia has been falling for years and accelerated dramatically through the pandemic. The Reserve Bank's payments data has consistently shown cash now accounting for a small minority of in-person retail transactions — and the share keeps shrinking, particularly for younger customers and in metro areas. Even tradies, market stalls, and farmers' markets — once cash strongholds — are now mostly card.
The practical implication: if your business doesn't take cards in 2026, a meaningful share of customers will simply walk away. Some won't have cash on them at all. Others will, but they'll be annoyed they have to find an ATM, and they'll remember next time.
The Real Cost of Being "Cash Only"
"Eftpos costs money — I'd rather just take cash" sounds like simple maths, but it isn't. The hidden cost of not taking cards usually exceeds the cost of taking them. Things business owners forget to count:
- Lost sales — every customer who walks out because you don't take cards is gone. Even a 5% walk-away rate at a $40 average sale is $2/transaction in lost revenue.
- Smaller average sale size — customers spend more on cards than cash. The mental friction of handing over physical money makes people round down. Card payments are routinely 15–25% larger per ticket.
- Cash handling time — counting the till, banking the takings, reconciling the float. Easily 30–60 minutes a day in a small business.
- Cash risk — theft, loss, miscount, robbery. Insurance premiums for cash-heavy businesses are typically higher.
- Banking fees — cash deposits aren't free at most major banks anymore. Big amounts attract counting and handling fees that can rival eftpos rates.
- Tax and compliance scrutiny — cash-heavy businesses get more attention from the ATO, particularly post-2020. Card-traceable revenue is just easier to defend.
Once you add it all up, the "cost" of being cash-only is almost always higher than the cost of taking cards. Often by a multiple.
The Modern Cost of Eftpos Is Lower Than People Think
A lot of business owners still imagine eftpos as the bulky old terminal, $90 a month rental, and 1.7% across the board. That's the 2010 version. In 2026, the market is much more competitive and the entry-level options are genuinely cheap.
For a small or new business, you've got real choices:
- Tap-to-pay-on-phone — no hardware at all. Take a card payment with just your phone, pay-as-you-go on transactions only.
- Smart all-in-one terminals — Wi-Fi or 4G, all-in pricing, no separate POS needed.
- Surcharging or "free eftpos" models that pass the card fee on to the customer (with caveats — see our free eftpos guide).
- Traditional bank terminals — still around, often the most expensive option.
Our real cost of eftpos guide breaks down what you're actually paying once everything's totalled up. The headline rate isn't the whole picture, but the genuine all-in cost for most small businesses now sits at a level where the lost-sale cost of saying no easily exceeds it.
"Cash Only" Is a Brand Statement Now
Twenty years ago, "cash only" signalled an old-school local business. In 2026, it signals "I haven't kept up". For most consumer-facing businesses — cafes, salons, shops, restaurants — being cash-only is a competitive disadvantage that affects more than just your transactions; it shapes what people think of the business.
The exceptions are narrow: tiny owner-operated stalls, some informal trade, and a few niche businesses where the cash-only branding is part of the appeal (think certain dive bars or under-the-radar food spots). Even these usually take cards eventually.
What About B2B and Trade Businesses?
If you're a tradie or a B2B operator who mostly sends invoices and gets paid by bank transfer, you might wonder if eftpos is even relevant. It is — and not just for the occasional retail customer. Here's why:
- Card payments for invoices get you paid faster than waiting on bank transfer terms
- Customers prefer paying their tradie on a card to earn points — and will often choose the tradie who can take it
- End-of-job payments on the spot mean no chasing
- Tap-to-pay-on-phone has made it almost free to add card acceptance to any small operator
Our tradies' guide covers the practical setup options.
What About Surcharging the Customer?
Surcharging — passing the card fee to the customer — is legal in Australia within RBA limits, and it's increasingly common. It can make eftpos effectively free to the business, but it has trade-offs: some customers don't like it, some POS systems handle it awkwardly, and the rules around "reasonable cost of acceptance" matter. Worth understanding before you commit.
See our surcharging in Australia guide for the rules.
So, Yes — But Get the Right Setup From Day One
The answer to "do I need eftpos in 2026?" is yes for almost every business. The more useful question is: which setup is right for me?
That depends on your industry, transaction volume, average sale size, where you trade (fixed counter vs mobile), and whether you want to absorb the cost or surcharge. Getting this right at the start saves money compared to signing up for the first deal a sales rep offers and unwinding it later.
Want a Hand Picking the Right Setup?
If you're starting up or finally moving on from cash-only, we can walk you through the real options across 20+ providers — completely free. Twenty minutes saves you years of being on the wrong deal.
Book your free consultation here or call us free on 1800 595 340.