Thousands of Westpac customers found themselves unable to complete purchases on Wednesday after the bank’s EFTPOS network crashed during one of the busiest shopping periods of the year.
More than 3,000 users reported problems accessing banking services from 12:30pm, with merchant terminals across Australia grinding to a halt just as Christmas shoppers flooded retail stores.
The timing couldn’t have been worse for small business owners relying on card payments during the crucial final weeks before Christmas.
System Failure Hits Merchant Services Hard
A Westpac spokesperson confirmed the bank was aware customers were experiencing difficulties accessing banking services.
“We’re working to restore services as quickly as possible and apologise to customers for the inconvenience,” the spokesperson told NewsWire.
The bank’s phone system carried a holding message acknowledging the widespread issues. “We are aware of certain issues impacting merchant terminals,” representatives informed callers throughout the afternoon.
Westpac EFTPOS terminals experienced widespread outages affecting merchant transactions.
Businesses Left Unable to Process Sales
Small business owners took to social media to express their frustration with the outage during peak Christmas trade.
“It’s down at my company as well so we can’t do any sales,” one affected merchant commented online.
The disruption came at a particularly bad time for retailers counting on strong December sales to finish the year. Many reported customers abandoning purchases after discovering they couldn’t pay with cards.
While Westpac customers struggled, rival banks NAB and Commonwealth Bank confirmed their systems were operating normally throughout the afternoon.
Westpac’s Troubled History with System Failures
This latest outage adds to Westpac’s concerning track record of payment system disruptions.
According to Reserve Bank of Australia data, Westpac has recorded the worst downtime among major Australian banks since 2021. The bank reported 323 hours of system downtime between September 2021 and June 2023.
That figure dwarfs the downtime experienced by competitors. Commonwealth Bank recorded 103 hours, ANZ 107 hours, and NAB 97 hours over the same period.
The RBA requires banks to publish quarterly statistics on significant outages and service availability. Westpac’s figures show 244 hours of downtime were attributed to ATM network failures alone in the final quarter of 2022.
Similar to recent disruptions at international banks like Barclays, which faced technical issues affecting millions, Australian customers are increasingly dependent on digital banking infrastructure.
Westpac leads major Australian banks in system downtime hours since 2021.
Customer Impact During Critical Shopping Period
The December timing proved particularly damaging for affected businesses.
Retailers depend heavily on the final weeks before Christmas to drive annual profits. Any disruption to payment processing during this window can significantly impact revenue.
Electronic Fall Back (EFB) mode, which allows some EFTPOS terminals to continue processing transactions offline during network outages, provided limited relief. Many terminals require manual authorisation for transactions above certain limits, slowing down the checkout process considerably.
Westpac serves over 13 million customers across Australia and New Zealand, making widespread outages particularly disruptive to the national economy.
No Timeline Provided for Full Resolution
As of Wednesday evening, Westpac had not provided a specific timeline for when services would be fully restored.
The bank’s technical teams were working to identify and fix the underlying issue causing the merchant terminal failures.
Previous Westpac outages have lasted several hours to multiple days. In October 2024, customers experienced difficulties accessing online banking for four consecutive days, drawing criticism from Treasurer Jim Chalmers who called the disruptions “really concerning developments.”
Government cyber security specialists were briefed on that incident, though Westpac has not confirmed whether the current outage has triggered similar government involvement.
What Customers Can Do During Outages
Westpac provides several options for businesses experiencing EFTPOS terminal issues during network disruptions.
The bank’s EFTPOS Now, EFTPOS Flex, and EFTPOS Connect terminals feature Electronic Fall Back mode to continue processing transactions when the network is unavailable. However, this backup system has transaction value limits that may restrict larger purchases.
For credit card transactions exceeding EFB limits, merchants must call 132 415 to obtain manual authorisation numbers. Debit card transactions above the EFB limit cannot be processed at all during outages.
Westpac terminals with 4G backup connectivity can automatically switch to mobile networks if primary internet connections fail. This feature helps maintain some transaction processing capability during partial network outages.
Westpac EFTPOS terminals feature backup systems to maintain operations during network disruptions.
Wider Context: Banking System Vulnerabilities
Wednesday’s outage highlights the vulnerability of Australia’s increasingly cashless payment systems.
As banks continue closing physical branches and pushing customers toward digital services, the impact of system failures grows more severe. Westpac has closed numerous branches in recent years as customers shift to online and mobile banking.
The financial sector faces mounting pressure to invest in more robust, fail-safe infrastructure. Customers and businesses depend on reliable payment systems for daily operations, making outages increasingly disruptive to the broader economy.
Financial technology companies offering payment processing alternatives may benefit from incumbent banks’ technical difficulties. However, all payment providers face similar challenges maintaining complex digital infrastructure.
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FAQs About the Westpac EFTPOS Outage
Q: How many customers were affected by the Westpac EFTPOS outage?
A: More than 3,000 customers reported issues during the outage, which began around 12:30pm Wednesday. The actual number of affected users may be higher, as not everyone reports problems to tracking services.
Q: Why did the Westpac EFTPOS system fail?
A: Westpac has not disclosed the specific cause of Wednesday’s outage. The bank confirmed issues were impacting merchant terminals but has not provided technical details about the underlying problem.
Q: How long did the Westpac payment outage last?
A: As of Wednesday evening, Westpac had not confirmed full service restoration. Previous outages at the bank have lasted from several hours to multiple days.
Q: Were other banks affected by the payment system outage?
A: No. NAB and Commonwealth Bank both confirmed their systems were operating normally during Westpac’s outage.
Q: What should businesses do during EFTPOS terminal outages?
A: Westpac terminals with Electronic Fall Back mode can continue processing limited transactions offline. Merchants can call 132 415 for manual credit card authorisations. Consider accepting cash payments as a backup during system failures.
Q: Does Westpac have a history of system outages?
A: Yes. Westpac has recorded the highest downtime among major Australian banks since 2021, with 323 hours of system failures between September 2021 and June 2023 according to RBA data.
Q: Will Westpac compensate affected customers?
A: Westpac has not announced any compensation plans for Wednesday’s outage. Other banks facing similar disruptions, including Barclays in the UK, have paid millions in customer compensation following extended outages.
