[starkhorn]

Folks,

I'm just wondering on the differences and usefulness of a visa/mastercard credit card compared with EFTPOS.

From what I gather EFTPOS can be used at nearly every shop to purchase items using a card which is more or less the same as a credit card.

So I'm wondering when can't EFTPOS be used? I guess purchasing items online? Hiring cars or hotel rooms?

I'm just trying to figure out if I can get by without NZ credit cards initially and simply rely on EFTPOS.

Is EFTPOS a bit like SWITCH was in the UK except with a higher daily limit?

Cheers
Starkhorn

[Trigirl]

switch is EFTPOS. it just seems to be more widely used in NZ thats all.

as for a higher daily limit i didn't realise there was a daily limit in the uk (other than your overdraft limit i guess!)

[zardell]

When I asked ASB Bank in London this question, I took it to understand that EFTPOS can't be used for payment over the phone or on the internet as Switch can. It can only be used in person.


..........I'll stand corrected though.


Julie

xx

[Smiler]

I haven't tried to use my EFTPOS over the phone just my credit card, but I'm sure it's not accepted either.

The banks mostly charge for chequebooks too, $6 gov tax, $25 if you loose it and cancel it and 50 cents per cheque and no one uses cheques in the shops (we'll I've not seen anyone :D) and often don't even bother to get one with their bank account. Car hire etc will always ask for a CC.

Another common way of paying for stuff here is direct bank transfer, there is none of the huha that I found in the UK about giving out 'personal details'. We've bought personal and business stuff over the phone and online and pay by bank transfer from our online accounts. Easy peasy!

HTH

[ruthyroo]

The obvious difference is that with EFTPOS you cannot exceed your existing funds whereas with credit cards you can go up to your credit limit. I don't think that you can use EFTPOS online or on the phone (though I haven't tried this TBH) becuase they operate by PIN number not by signature, and they don't have the little three digit security number that credit cards have on the strip. Some shops e.g. travel agents do charge for using credit cards where they don't charge for using EFTPOS. On our most recent payment this was a difference of $63 so it is worthwhile using EFTPOS!

I'd go for both TBH for convenience but make sure you pay the CC off every month!!

[Howie]

Our bank account has a daily withdrawal limit of $1000 which includes EFTPOS. Also, some small shops and cafes only take EFTPOS and not credit cards.

[K&CS]

You can't use EFTPOS on line at all, no. There are no plans for the Switch type of card to be used over here - apparently there isn't the market. You can use EFTPOS just about anywhere else, including buying a drink in a bar - nobody thinks it's strange at all. I hardly ever use cash these days - just take Auntie EFTPOS with me (and give hubby the receipts at the end of the day...)

[KerryS]

Yep, you can't use Eftpos ove the phone to purchase something, but you can use it to reserve something. i.e. You can use it to reserve movie tickets, but then you have to go and enter your pin when you get there.
Also, Eftpos is instantaneous, whereas Switch you would have a couple of days delay before the funds come out of your bank account. You can make an eftpos transaction and see you online account be debited a minute later.

I use my Eftpos card for everything, and just use my credit card for internet/phone shopping.

[richard]

A lot of banks charge for every EFTPOS transaction if your bank account balance is below a certain amount (e.g. my account limit is $5k at the moment). A lot of people therefore use their credit cards for everyday purchases then clear the balance at the end of the month. You do pay for the privilege of having a credit card though.

[starkhorn]

Ok thanks folks. That was all very useful information.

Cheers
Starkhorn

[Avalon]

Folks,

I'm just wondering on the differences and usefulness of a visa/mastercard credit card compared with EFTPOS.

Where CC can be really useful is if you have a revolving credit mortgage (what would be called and offset or all-in-one mortgage in the uk if that helps). With these, keeping as much of your wages in your account for as long as possible helps keep the mortgage interest payments lower.

So using a credit card to pay for things is a definate advantage. As long as you religiously pay off the full balance each month, otherwise interest and charges on the CC outweigh any benefit you just got.

There are also some quite hefty charges for CC here. Our joint visa costs $55 a year, plus another $20 to join the rewards program. For us its worth it because we get enough points to offset the charges and then some, but that has only been the case since OH had a new job and we got the house. Before that - we couldnt afford to spend enough on the card to get enough points to cover the costs.

Does that make sense???

[Questor]

Most people I know here do the thing of using the CC to make everyday purchases and pay it off at the end of the month - I think it's only worth doing that without a mortgage if your EFTPOS fees are high - I'm seriously tempted to change to the (I think) Kiwibank account that has the flat $5 fee - though the staff in our local ASB are so nice I don't want to disappoint them! :)

[Smiler]

Most people I know here do the thing of using the CC to make everyday purchases and pay it off at the end of the month - I think it's only worth doing that without a mortgage if your EFTPOS fees are high - I'm seriously tempted to change to the (I think) Kiwibank account that has the flat $5 fee - though the staff in our local ASB are so nice I don't want to disappoint them! :)

I think ASB are bringing out a free or small flat fee account soon. :D