myPOS vs Traditional Bank Card Machines: Which One Is Right for You?

Just a few years ago, businesses that wanted to accept card payments had little choice but to go through traditional banks for their card machines. Today, the landscape has changed dramatically. 

A wave of fintech companies has made modern payment solutions more accessible, especially for small businesses. Among them, myPOS stands out as a leading provider, offering a variety of robust, cost-effective devices.

In this guide, we’ll break down the key differences between myPOS card machines and bank-issued POS terminals. To make things easier, we’ve also included a side-by-side table that compares the two across key factors. 

Whether you’re buying your very first card machine or looking to upgrade, this comparison will help you decide which option best suits your business.

What is the difference between myPOS and bank card machines?

Choosing the right card machine can have a big impact on how efficiently your business operates and gets paid. From setup and fees to payout speed and advanced features, each solution offers a distinct experience. 

Below, we break down the key areas where these options differ, so you can decide which one better fits your business needs.

Setup and contracts: Flexibility vs. Fixed agreements

When it comes to getting started, the setup process is one of the first major differences between traditional banks and myPOS.

With bank-issued POS terminals, the onboarding tends to be more formal and cumbersome. If you don’t already have a business account with the bank, you’ll need to open one, often involving rigorous identity checks, business verification and a lot of paperwork. After that, the bank reviews your application and configures the terminal, which may take several more days. 

Altogether, it can take 5 to 10 business days or more to complete the process with a bank.

In contrast, myPOS offers a fully digital experience. Creating an account online takes just a few minutes, followed by an ID verification (usually via a phone/video call). Activation of the device is simple and takes just minutes. 

Most merchants are ready to accept payments with myPOS within 3 business days.

Another key difference lies in the level of commitment required. Bank terminals often come with long-term contracts and penalties for early termination. myPOS, however, is contract-free, allowing you to use the service without being locked into a fixed agreement.

Pricing and fees: How much does each alternative really cost?

The full cost of a card machine goes beyond just the device itself. It includes monthly fees, transaction rates and any additional charges.

Traditional bank card machines often involve an upfront device cost, setup fees, monthly account maintenance charges and transaction fees. They may also come with minimum monthly usage requirements. Pricing structures vary widely between banks and are often tailored to each merchant.

myPOS, on the other hand, uses a pay-as-you-go pricing model. There are no setup or monthly fees. You purchase the terminal outright and pay only a small fee per transaction. Each device comes with a free myPOS business account and payment card, with no additional costs unless you choose optional premium services.

Overall, while banks may offer volume-based discounts for larger businesses, myPOS is often more cost-effective for SMEs, sole traders and mobile businesses.

Payout speed: Instant settlement vs. Delayed transfers

How quickly you receive your funds can significantly impact your cash flow, especially for small businesses.

Banks typically process settlements on a T+1 or T+2 basis, meaning money is transferred to your business account 1 to 2 business days after the transaction is made. In some cases, the wait may be longer over weekends or holidays. 

myPOS offers instant settlement. As soon as a transaction is completed, the funds are available in your myPOS business account. This typically takes no more than three seconds and allows merchants to withdraw cash, make payments or transfer funds without waiting for clearing times.

Features and functionality: Beyond just taking payments

While some banks now offer more advanced terminals with reporting features or integrations, many still provide models solely designed to accept payments without added flexibility for managing business operations.

myPOS has a variety of devices, designed to support the unique demands of different merchants. All card machines come with a wide range of built-in features to support day-to-day business needs. 

These may include:

• Multi-operator mode;
• Tipping and refund options;
• Customisable receipts;
• Real-time sales reports;
• Pre-authorisation;
• Payment links and QR codes.

While myPOS offers greater flexibility and more built-in features, businesses with simpler needs may still find traditional terminals sufficient for their operations.

Integration with online and offline sales channels

Traditional card machines are primarily built for in-person payments. While some banks now offer additional services or integrations with e-commerce platforms, these are usually separate products and may require third-party tools, added fees or additional setup.

myPOS offers a more unified ecosystem. In addition to card machines for face-to-face payments, myPOS provides tools for selling online, such as a website builder, payment gateway, payment links, and virtual terminal. All of these come with no setup or monthly fees. This allows businesses to manage both online and offline transactions through a single platform.

Security and compliance: Are both safe?

Bank-issued POS terminals are compliant with PCI DSS (Payment Card Industry Data Security Standards) and follow strict security protocols, including encryption and fraud monitoring. As established financial institutions, banks typically have robust internal controls and are subject to financial regulation and oversight.

myPOS also fully complies with PCI DSS requirements and uses end-to-end encryption and tokenisation to protect sensitive card data. The company is a licensed electronic money institution, regulated by the Financial Services Commission. 

myPOS vs bank terminals: A quick comparison

To help you quickly evaluate which option fits your business better, here’s a side-by-side comparison of myPOS and traditional bank card terminals across key features.

As shown above, both solutions offer secure and reliable payment processing. However, they differ in terms of fees, features and flexibility. Depending on your business model, operations and future growth plans, one may prove to be a better fit for your needs.

Final verdict: Which solution is best for your business type?

Choosing between myPOS and traditional bank card machines largely depends on your business size, preferred sales channels, mobility needs and growth plans.

If you run a larger business with stable, high transaction volumes, a traditional POS terminal may be a suitable choice. Banks often offer custom pricing or volume-based discounts that can be cost-effective at scale.

However, if you’re a small business, sole trader, freelancer or a merchant on the go, myPOS may be the better solution for you. It offers the flexibility and affordability that many smaller or mobile businesses need, without binding contracts or recurring fees.

Finally, if you’re planning to run an omnichannel business, traditional solutions may fall short. As a merchant service provider, myPOS offers innovative solutions that bridge the gap between banking services and modern technologies. It provides a comprehensive suite of products and integrated tools for both online and offline payments, tailored to meet the specific demands of SMEs.

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