My fellow Aussies (and SugaredSaffron in the IK) have answered your further questions for me.
For the amount of difficulty that it appears non-payment and cheques clearing/bouncing, and CC payments being reversed, and Paypal locking your accounts and refunding money to the client...I would have thought EFT makes a hella lot of sense. I DO understand the psychological leap needing to be taken to go direct deposit. When it was introduced here, there was a bit of resistance, particularly from older members of society. However, when you think about the amount of time and money you save by not having to write checks, post payments in the mail, show up in person at the post office etc etc, its much easier to do your banking online.
As far as our current discussion regarding payment for your cakes. Yes, this acts just like cash. As I said, though, everyone has a record of the transaction - unlike cash - and so the tax office is happy as there is evidence of company income.
If you are saving points or whatever for your wedding purchases, you can certainly open a debit card account (eg a Visa debit card, that functions JUST like a CC but you are using your own money) and use this information to pay via EFT and get your points etc.
Recourse/float time? What is so wrong with shifting the balance more towards the vendor? If you have a contract anyhow, then the onus in then on the client to show how your product failed. It doesn't necessarily have to go to court, but the client needs to provide evidence, lodge a complaint in a timely manner and allow for resloution either directly with the vendor, via mediation or in worst cases - through the court system. Remember though that these days we have the benefit of things like the BBB in the USA, or Dept of Fair Trading here in Oz who keep a record of suspect businesses, plus the myriad wedding directory websites/vendor ratings, facebook reviews etc etc that means the onus IS on the vendor to settle any disputes in a swift and complete manner. So it would be a foolhardy vendor indeed who would say "Suck it up! I got your money! You've got buckleys in getting a refund' ... or words to that effect :-)
Another point: in Oz at least more and more businesses are charging the 1-3% fee (the real cost of offering CC facilities) directly to the customers who want to use their CC. So, if anything, people are moving away from CC usage, in order to save yet another ridiculous bank fee. So I have a highly motivated clientele who WANT to use EFT. Bear in mind, my target clientele are young peeps getting married. They are au fait with this system. Sometimes I DO have a dear old thing who wants me to make a small birthday/anniversary/minor event cake and in this case I am more than happy to accept cash in hand, or a bank cheque from them. Some older people still can't/won't manage the whole bank transfer/EFT thing :-) I can say, however, not ONE person in the past 6 years has declined to use my services because I do not have CC facilities, and do not accept personal cheques.
So for the very suspicious, or luddites (be it age- or mentality-related), I am still okay with them posting me a bank cheque even though these now take 10 days to clear (!!ridiculous!!). Whether you are in Oz or in the USA, the bulk of us demand FULL payment before receipt of cake, so what difference does it make?
No bank fees, no cards to carry, no EFTPOS device, no CC charges, plus the onus on the client to prove wrongdoing (instead of stopping payment, getting a refund through Paypal or the CC company, thus being a huge PITA for the business). Makes sense for many small and micro businesses such as the home-based bakery/cake decorator.