Financial Literacy #3�

Eftpos &

Credit Cards

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tahiMaths©

Question 1

When did the eftpos card start in New Zealand…?

Question 2

What does eftpos stand for…?

Question 3

What age can you get an eftpos card in New Zealand…?

Question 4

When did credit cards start in New Zealand…?

Question 5

What is the difference between credit and eftpos…?

Question 6

What age can you get a credit card in New Zealand…?

Question 7

What is a debit card…?

Question 8

Name two NZ online stores and two International online stores that accept credit/debit cards…?

Section 1 – Electronic Banking

Facts:

• During December 2020, New Zealander’s spent $9.4 billion ($9,400,000,000) on electronic banking which includes eftpos, credit cards and debit cards.
• During our lockdown in April 2020, we only spent $3.4 billion.

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Section 1 – Electronic Banking

Eftpos

Eftpos is an abbreviation which stands for Electronic Funds Transfer at Point Of Sale. It began trials in the United States of America in 1981 and trials in New Zealand began in 1985 through certain Petrol Stations. It was officially launched in New Zealand in 1989.

Eftpos takes money out of your bank account when purchasing a good or paying for a service. You must have enough money in your account for the transaction to take place, unless you have an overdraft (see below). There is often a monthly fee to use an eftpos account, though there are often no fees on student’s accounts. Different banks may have different rules, but generally 12–13-year-olds can apply and get their own eftpos card.

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Section 1 – Electronic Banking

Credit Cards

Credit is the idea of borrowing money from someone, in particular a bank, and paying them back most often with interest. Interest is a percentage of the amount you have borrowed. For example, you borrow $1,000 from a bank but you pay back the $1,000 plus 5% extra.

Credit has been around almost since money was developed, but the idea of a credit card did not develop in the world until the mid-1900’s. The credit card as we know it did not begin in New Zealand until the early 1980’s around a similar time as the eftpos card.

Section 1 – Electronic Banking

Credit Cards

For a lot of credit cards, if you borrow money, you are required to make regular payments back to your credit card account each month. If you pay it all back within the given month, you pay back no interest, but if you do not pay back the entire amount within the given month, you pay interest on the money owed. There is often a monthly fee to use a credit card.

Some common credit card types you may have heard of are: Visa, Mastercard and American Express. Credit cards are much easier to use when travelling overseas or buying online products from overseas as most overseas shops and online retailers cannot use a New Zealand eftpos cards. Different banks may have different rules, but generally 18-year-olds can apply and get their own credit card.

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Section 1 – Electronic Banking

Debit Cards

Debit cards are a mix of credit cards and eftpos. You must have the money in your account first, ie you are not borrowing money like credits cards, but they are accepted by many overseas shops and online retailers like a credit card.

There is often a monthly fee to use a debit account, though there are often no fees on student’s accounts. Different banks may have different rules, but generally 16-year-olds can apply and get their own debit card.

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Section 1 – Electronic Banking

[Please complete Exercise 1]

Section 2 – Eftpos Example 1

[Please complete Eftpos Example 1]

Section 2 – Eftpos Example 2

[Please complete Eftpos Example 2]

Section 2 – Eftpos Example 3

[Please complete Eftpos Example 3]

Section 3 – Credit Card

Credit Cards

Credit is the idea of borrowing money from someone, in particular a bank, and paying them back most often with interest. Interest is a percentage of the amount you have borrowed. For example, you borrow $1,000 from a bank but you pay back the $1,000 plus 5% extra.

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Section 3 – Credit Card

Section 3 – Credit Card

Section 3 – Credit Card

Section 3 – Credit Card

Section 3 – Credit Card

Section 3 – Credit Card

[Please complete Exercise 3]

Section 4 – Overdrafts

An overdraft account is an account when you may access additional money if you do not have enough money in your account for a purchase. You must apply to get an overdraft account. They will give you an approved limit.

For example, if you get approved for an $1,000 limit and you only had $200 in your account, you could buy something for $1,200 but you need to pay back the $1,000 overdraft.

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Section 4 – Overdrafts

Section 4 – Overdrafts

Section 4 – Overdrafts

Section 4 – Overdrafts

[Please complete Exercise 4]