EFTPOS purge slammed as ‘extreme’ by dealers association

Nineteen thousand EFTPOS machines using a soon-to-be-outdated security technology will be disconnected in April next year.

Payments NZ confirmed the terminals will need to be replaced before 30 April 2026, drawing criticism from  the EFTPOS Dealers Association of New Zealand (EDANZ).

In a statement, EDANZ called it “the most extreme and aggressive removal of EFTPOS terminals anywhere in the world”.

"It’s wasteful, anti-business and completely misaligned with global best practices," chairman Steve Batey said in the release.

EDANZ says Payments NZ sets the end-of-life dates five to seven years earlier than most comparable countries. Devices in Australia using the same security standard -  version v4x of the software - will be valid until the end of 2033.

“And it’s not an isolated event. Between 2023 and mid-2024, 60,000 v3.x devices were forced into early retirement here in New Zealand.

“Globally, those exact devices are still approved for use in other countries right now and until 2030.”

EDANZ says this comes at a great cost to businesses, consumers and the environment.

In a statement issued to TWN, Payments NZ says it is focused on preventing fraud and unauthorised data use. The 2026 deadline has been in place since 2017.

“We are in regular contact with device vendors, dealers, and resellers, working alongside them to prepare for a smooth transition, and we are ready to assist if they have concerns or questions.”

Payments NZ says the payment card industry, which sets security standards globally, has warned since 2022 that the v.4x devices are becoming increasingly vulnerable to attacks.

“While we know there are a range of views in the market, the concerns raised by EDANZ do not reflect the majority of what we’re hearing from industry.

"Australia reflects a very different EFTPOS market. In Australia, most EFTPOS terminals are issued by banks ... our EFTPOS market is more diverse and reseller-based.

“Our device life cycle reflects that, balancing security with realistic timelines for merchants and vendors.”

EDANZ says it has submitted a formal complaint to Payments NZ and reached out to government ministers.

“The current system is broken,” Batey says.

“This needs fixing—now.”