Our recent EFTPOS Retailer Survey highlights the critical concern for Australian retailers, which resulted in many questions for me from retailers over this survey: When choosing payment solutions, retailers here gave reliability as their top priority, surpassing fast clearance and cost. While fast clearance remains the next most important, uninterrupted payment processing is essential for business continuity.

Payment processing reliability is not just a convenience; it's vital for business continuity. Yet our survey indicates that retailers frequently experience outages and pose a persistent risk. These outages would result in significant financial losses for retailers.

What hurts is that almost all IT infrastructure guarantees an uptime of 99.999% (we call this the five nines), yet no one sees it. A shop, let us say, open 8 hours a day, 300 days a year, would, based on this, have less than 1.5 minutes of an EFTPOS outage a year. I am sure we all have gone through more than 1.5 minutes of an EFTPOS outage.

Incidents involving Telstra and Woolworths demonstrate that even major businesses are not immune to payment outages.

For example, a retailer with $1 million in annual turnover and a 30% margin loses approximately $400 in revenue for every hour of downtime. This figure only reflects immediate losses. Long-term impacts such as damaged customer relationships, reputational harm, and customer attrition will be even more significant, though harder to quantify.

Under Australian Consumer Law, businesses may be entitled to compensation for financial losses caused by EFTPOS outages, even if the provider does not guarantee uptime. To make a successful claim,  it will take time as you need to document all losses thoroughly, then you will need to include POS reports comparing affected periods to normal trading to show the loss. I have seen a few people do this, with mixed results. We generally advise that if the EFTPOS provider makes a fair offer, accept it. One problem is that the EFTPOS providers know your figures as well as you do and have more money and experience in these matters.

Calculate the Cost of an EFTPOS Outage

Several direct and indirect factors determine the actual cost of an EFTPOS outage. The following outlines some key variables to help you estimate your potential losses.

Calculation

Average hourly revenue

An outage can occur anytime; take your yearly revenue and work out an hourly rate.

I should say here that Murphy's Law will tell you that outages will occur at the worst possible times, such as during peak trading hours, amplifying their financial and reputational impact.

Outage duration

This is hard to estimate, as customers have been knocked out for minutes, hours, and days. Do your best here. 

This one really hurts. Often, you use the downtime to do your books, and you see money going out, while your staff is doing nothing.

Card transaction percentage

Your End-of-Day reports will tell you this, I would expect somewhere between 50% and 80%

Estimated sales lost

Many customers carry little or no cash, and if EFTPOS is down, they cannot buy from you. Many will go elsewhere to buy the product. As a guess, I would say 50%, but I would not be surprised if it's closer to 100%.

Now multiply these out.

(Lost revenue) = (Average hourly revenue) x (Outage duration) x (Card transaction percentage) x (Estimated sales lost)

That is the easy part now, we need to add to this base figure.

Customer Reputational Behaviour    

What do the customers think of you? If they cannot buy from you, they will buy from someone else. What chance is that they will switch for good? It is said that if an outage occurs once, it is generally okay, but two or three is something else. What is the cost of losing ten customers a year to EFTPOS outages?

I have seen industry experts give figure 

Key Takeaway

The actual cost of an EFTPOS outage extends far beyond immediate lost sales. Reliability is the foundation of trust and operational continuity in retail. Both providers and retailers must prioritise robust systems and contingency plans to safeguard business performance and customer relationships. 

As Australia moves into a cashless society, our present government (both sides) will only make this problem worse by not putting more commitment into our electronic infrastructure.

Every retail business faces urgent situations, such as crashed POS systems during peak sales periods and sudden staff absences. But what happens when procedures and systems aren't in place to address these urgencies?

This real-world example illustrates how poor password management turned a "VERY urgent" matter into a seven-month saga with significant business implications.

Inaccessible Financial Records

In December 2024, our team received a concerning call from an accountant regarding one of our clients, Louis, who had unexpectedly fallen ill and moved to a nursing home. The accountant needed to access Louis's financial records stored on his computer to finalise his affairs. Unfortunately, the computer was not working. As the accountant said, it was "VERY urgent."

So we immediately offered assistance. We asked him to send that shop's computer to our engineering bay for immediate repair. What followed was a series of delays and complications that transformed this "urgent" situation into a long ordeal:

Week 1

We heard nothing from the accountant after our initial conversation.

Week 3

The accountant's assistant arrived unannounced with the computer. Upon examination, we discovered that the operating system had been deleted. So we said it would take a few hours to see the damage. The assistant left and said to contact them as soon as possible when we had an answer, as it was urgent.

We got the computer working but discovered that it was protected by many passwords, which was unsurprising, as most financial computers are similarly protected. We recommend it; click here. 

We notify them of this promptly.

Week 5

After notifying them about the password issues, we finally received some passwords. However, during our investigations, we discovered we needed additional credentials for several protected areas. We told them this.

Week 9

We received a follow-up for them. The accountant acknowledged the urgency but mentioned he was going on holiday soon and would be gone for a week.

Week 13

The accountant provided more passwords, which again proved insufficient.

Week 17

We received a USB stick with some information. It helped, but the accountant announced he was departing soon for a month-long European holiday.

Now

What began as a "VERY urgent" matter was now guaranteed to extend beyond seven months, potentially having profound implications for Louis's financial affairs.

What hurt is that it was entirely preventable.

Password management best practices

This scenario highlights one of the most significant vulnerabilities in many retail businesses: the single point of failure. In Louis's case, he was the only person with access to critical financial information. This common but dangerous practice leaves businesses extraordinarily vulnerable when that person becomes unavailable for any reason.

For retailers, I have seen this risk extend beyond financial data to include:

• POS system administrator credentials
• Supplier portal logins
• Banking and payment gateway access
• Inventory management system passwords
• Customer relationship management data
• Cloud storage accounts
• Social media and online marketplace logins

If only one staff member can access these systems, your business is one unexpected absence away from significant operational disruption.

Consider the potential costs of password-related business disruptions.

Crisis management for businesses

The other revealing aspect of this situation was the disconnection between the stated very urgent and the actual response time. While the accountant consistently emphasised the urgency of resolving Louis's affairs, somehow, I did not see it. Cynically, I wonder if the accountant did not benefit from this delay.

Business continuity

The best emergency response planning isn't seen in what happens, but in what doesn't happen.

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

Today, your point-of-sale (POS) system is vital in your shop. However, remember that it is a mechanical device. Even the most reliable machine can fail even with the best care being taken. Even quicker if it is not well treated. Here, we'll explore why regular computer maintenance is essential for small retailers, share a cautionary tale from one of our clients recently, and provide you with a practical checklist to help you keep your POS system running smoothly. Don't let your business become a cautionary tale too —learn how to protect your investment and ensure business continuity.

The Cautionary Tale

A had been using the same computer for a whopping 15 years. It started showing issues, and when reported to us, we told them that this machine needed looking into and maybe needed replacing. They kept putting it off with the idea, "If it ain't broke, don't fix it."

But here's the point - it was broken. They didn't know it yet.

The Breakdown

A few days ago, their computer died. Here's what went wrong:

Outdated Operating System: The computer was running Windows Server 2008. It is long obsolete. POS software updates are helpful.

Computer cleaning: The computer was caked in dust, and no one bothered to clean it. As a result, the air vents were blocked, so it ran without cooling, cooking the circuits.

Hard Drive Failure: After years of good service, the hard drive called it quits.

Corrupted Backup: When we checked, the problem corrupted their backup.

The Consequences

Now, our client has

• Data Loss: Lost critical information, probably its gone forever.
• Downtime: It will take us time to recreate their system. We have given them a fresh system with minimal information till we sort it out.
• Expensive Recovery: Recreating data and migrating to a new system isn't cheap.

Your Computer Maintenance Checklist

So, how can you avoid this Scenario? Here's a handy checklist:

POS system maintenance: Dust is the enemy! Give your equipment a good clean regularly, at least once a year.  Read here.

Hardware Upgrades: Why wait until it's too late? Prevent possible data loss.

Backup, Backup, Backup: Create frequent data backups and store them off-site.

Listen to Experts: Take their advice seriously! If you do not like their advice, why do you use them?

Retail computer maintenance checklist

1. Assess: Take a good, hard look at your current POS system. How old is it?
2. Plan: If you're due for an upgrade, start planning. Why wait for disaster to strike?
3. Act: Reach out to us. We are here to help you to keep your business running with top-notch staff.

In retail, your POS system is your nerve centre. Please treat it with care. Let's work together to keep your business thriving!