The Model
How Free EFTPOS Works
Free eftpos isn't actually free for the payment chain. Here's where the cost goes.
Zero Terminal Cost
You pay $0 upfront. No purchase, no lease payments. The provider covers the hardware.
No Monthly Fees
No subscription charges, no maintenance fees. Total monthly cost from you: zero.
Customer Pays the Fee
Instead, customers pay a surcharge (typically 1–2%) when they choose to pay by card. This covers the provider's costs and profit.
You Receive Settlement
Your customer's payment minus the surcharge arrives in your account (usually same day). You keep 100% of the sale.
The logic is simple: providers collect surcharges from customers instead of charging you monthly. Works well for high-volume businesses where surcharges are spread across many transactions. Doesn't work as well if surcharges deter customers or you have low transaction volumes.
Comparison
Zero Cost vs Low Cost EFTPOS
Free eftpos sounds perfect on paper, but low-cost options can sometimes win in real-world conditions.
Zero-Cost (Surcharging)
- No upfront costs or monthly fees
- Excellent for very high-volume businesses
- Card-happy customers may not notice surcharges
- Good for restaurants, retail, hospitality
- Customers see the surcharge and may choose not to pay by card
- Damages brand perception ("hidden fees")
- Not suitable for low-volume or price-sensitive businesses
Low-Cost (Wholesale Rates)
- No surcharges — transparent pricing
- Better customer experience (no friction)
- Can earn rewards (e.g. Qantas Points)
- Predictable costs month-to-month
- Small monthly fees or per-transaction charges
- Requires negotiation (not all providers offer this)
- May still cost more than free if volume is extremely high
Providers
Free & Zero-Cost EFTPOS Providers
Here's what's available in the Australian market right now.
| Provider | Terminal Cost | Monthly Fee | Transaction Fee / Surcharge | Minimum Volume | Best For |
|---|---|---|---|---|---|
| Smartpay | $0 | $0 | Customer surcharge (0%–1.5%) | $10k/month recommended | High-volume retail & hospitality |
| PayNuts | $0 | $0 | Customer surcharge (typically 1%) | $10k/month recommended | Growing businesses, card-heavy verticals |
| Zeller | $0–$99 (depends on model) | From $0 | 1.25%–2% transaction fee (variable) | None enforced | Tech-savvy businesses, e-commerce integration |
| Square | $0–$299 | $0 | 1.69% + $0.30 per transaction | None | Small businesses, pop-up shops |
| Bank Options (CBA, Westpac, NAB, ANZ) | $0–$500 | $15–$50 | 1.5%–2.5% (varies by bank) | Depends on relationship | Established businesses with bank relationships |
Note: Pricing and features change frequently. These are approximate figures as of 2026. Always confirm directly with providers before deciding.
Reality Check
The Catch With Free EFTPOS
Free eftpos has limitations. Here's what you should know before committing.
Minimum Transaction Volume
Most free eftpos providers require a minimum monthly turnover (often $10,000+). If you don't hit this volume, you may not qualify or the deal becomes uneconomical. Always ask about volume requirements upfront.
Surcharge Friction
Customers who see a 1–2% surcharge may choose to pay differently (cash, cheque, bank transfer). Studies show surcharges reduce card adoption, especially in industries where price-sensitive customers are common. How much is the lost convenience worth?
Customer Perception
Some industries carry a stigma around surcharging. If you're in hospitality, retail, or professional services, surcharges can feel like a "hidden cost" to customers, even though it's clearly displayed. This can damage trust and repeat business.
Lock-In Periods
Free eftpos providers often require longer contracts (12–36 months). If you want to switch later or the surcharge becomes unpopular, you may be locked in. Always check exit clauses.
Settlement Timing
Some free eftpos providers settle to your account the next business day instead of same-day. For cashflow-dependent businesses, this can be a problem.
Fit Analysis
When Free EFTPOS Makes Sense
Free eftpos is perfect for specific types of businesses. Here's if you might be one.
High-Volume Retail
Supermarkets, department stores, and chains where customers expect card payments and surcharges are normal. Volume spreads the cost effectively.
Hospitality
Restaurants, bars, and cafés where card is the expected payment method. Customers pay the surcharge as part of the total bill without thinking twice.
Quick Service & Pop-Ups
Food trucks, markets, event venues, and temporary operations where you want zero hardware costs and flexibility to move locations.
Card-Heavy Industries
Gyms, salons, and businesses where most transactions are already card-based. Surcharges become an accepted cost of doing business.
Risk Factors
When Free EFTPOS Doesn't Work
Avoid free eftpos if your business fits these categories.
Low Transaction Volume
Under $10k/month or mostly cash-based. You won't meet minimum volume requirements and surcharges become a burden rather than a solution.
Price-Sensitive Customers
Budget-conscious businesses or communities where an extra 1–2% genuinely deters purchases. The friction isn't worth it.
Cashflow-Dependent Operations
If you need same-day settlement to manage tight cashflow, next-day processing from some free providers will hurt. Every day counts.
Premium/Professional Services
Accountants, lawyers, consultants, or luxury brands where surcharges feel cheap and damage brand perception. Low-cost transparent pricing is better.
A Better Option?
Here's what many of our clients discover: instead of going zero-cost with surcharges, you might be able to negotiate wholesale rates that include Qantas Points or cashback rewards.
Sound unlikely? One of our clients went from paying standard rates to an exclusive deal where they earn 720,000 Qantas Points every year just from normal trading. That's worth $7,200–$10,800 in flights.
The trick is having a broker who knows every provider's edge cases and can unlock deals that aren't on their public pricing pages. That's what we do.
Free eftpos might get you to zero. Smart negotiation gets you to positive. Which sounds better?
Learn About Rewards & PointsFAQ
Free EFTPOS Questions
Everything you need to know about zero-cost and free eftpos options in Australia.
We'll Tell You Honestly
Whether Free EFTPOS Is Right
If free eftpos doesn't suit your business, we'll say so — and show you a better option. Book a free consultation and find out what deal your business actually qualifies for. No pressure, no spin.
Serving businesses across all of Australia