What eSS does is to enable the “centralised settlement of CHQ and SAV transactions processed via the eftpos Hub”, with eftpos now determining “the multi-lateral net settlement obligation for each Member, and initiates the settlement of those obligations through instructions to the Reserve Bank’s Information and Transfer System (RITS).”
The company says: “eSS replaces all previous arrangements for eftpos POS transaction Settlement, including bilateral arrangements and use of the existing Low Value Settlement Service (LVSS).”
eftpos proudly boasts that the launch of the new service “required all Members to be technically and operationally ready to go live on the same day, signalling the significance of this industry achievement".
“The service is made possible through the recent completion of the eftpos Hub project. With all Members now processing eftpos CHQ and SAV transactions through the eftpos Hub, the ability to deliver value added services that drive operational efficiencies and reduces the cost of change, is key to our value proposition to Members and the Australian payments industry.”
For those needing a refresher, “eftpos is the most widely used debit card system in Australia, accounting for more than 2.2 billion CHQ and SAV transactions in 2016 worth more than $138 billion”, with more information on eftpos here.
Well, it doesn't look like there is any particular change for the end-user using eftpos to make payments, and it's clearly a financial industry achievement in a very fast timeframe that I can’t remember being achieved in a co-operative effort by the finance industry before. It helps eftpos and the industry be more competitive, more efficient and more relevant, but it also may make it easier for other companies without a settlement services to connect to the network quickly and increase competition.
However, for end-users, the advice for using eftpos is the same as in the past: instead of pressing the CR button next time, you can do a CHQ up from neck up and help SAV the Australian payments industry by keeping fees and transactions in Australian hands, rather than in those American credit card comapnies, and SAV yourself some money at the same time.
An example is with Aldi, which charges an extra fee when you do a contactless “tap and go paywave” payment, but charges no such fee when you insert your card into the chip reader (or swipe if needed) and press CHQ or SAV, whichever is relevant to you.
Not everyone charges you extra for tapping and go paywaving, but if your payment choice can help an Aussie company innovating against the multinational payment alternatives, CHQ yourself and SAV!
That said, that’s about to change too, with 1.4 million eftpos Tap & Pay cards already in the market, and about 3.5 million by the end of the year – all clearly marked “eftpos” on the front.
Here's the eftpos Transformation video the organisaton posted back in 2015, and which is now complete!
Turn phone horizontal to view full image below if cut off: