Everything you need to know about POS systems


Gone are the days when customers had to wait in queues to make payments. Businesses are putting behind the troubles that came along the traditional payment methods as they throw out their old registers and become more dependent on modern technology.

The technological world has come a long way and brought with it beautiful innovations for the humanity to relish and enjoy. Specifically, in the world of grim and grey payment methods, the invention of POS payment processing solutions is a game-changer.

If you are looking to make your business more cost-focused, gain significant insights into revenues, save your precious time while improving customer relations, a POS system is your single MIGHTY answer.

 

What Is A POS System?

A point-of-sale (POS) system is the hub of all your business activities. It is a constellation of unified actions like sales, inventory control, employee and customer management, integration, and reporting all in a single hardware and digital setting.
Therefore, do not mistake a POS system as a standalone machine or a mere technological process. It allows a business to not only process transactions efficiently but streamline business processes connected with sales at the same time without any hassle.
The POS systems or terminals are most commonly found wherever transactions take place in a store. However, that does not mean that a POS system works only for the traditional brick-and-mortar stores. It allows online payment processing solutions to all e-Commerce stores providing a sure-fire way of driving costs down while boosting revenues.

Components of a POS System

POS system encompasses hardware and software

A POS system encompasses hardware and software that make running the day-to-day operations of a business swift and stress-free. The hardware components may include a barcode scanner, a monitor or a screen, a card reader, receipt printer, and a cash drawer while the software components include all the shining features the system offers.

⦁ HARDWARE COMPONENTS:
⦁ Barcode scanner

A barcode scanner or reader is simply an optical scanner. It can read printed barcodes to decipher the data it contains so it can send it to a computer for processing a transaction.

Barcode scanners POS system’s stock level counts

Barcode scanners are usually found in stores that sell different kinds of products like retail stores. The reason being, a barcode scanner is commonly linked with the POS system’s stock level counts, which aids in automatically updating product counts as they are sold.

⦁ Monitor or a screen

POS payment processing solutions

POS ecommerce payment processing solutions contain a device or interface where you can register transaction details. It could be a cash register with buttons, a monitor, a touchscreen PC, or mobile device with a POS app.

⦁ Card reader

Card readers are incorporated in a POS system to process credit card or debit card payments and mobile wallets via NFC.

⦁ Receipt printer

Receipt printers are simply used to print receipts for customers or end-of-day reports.

⦁ Cash drawer

A cash drawer stores the daily cash inflow along with cheques, vouchers, and receipts and slips relevant to bookkeeping.

⦁ SOFTWARE COMPONENTS:
⦁ Inventory Management

One of the most prominent functions of a POS system is inventory management. At its very essence, a POS system keeps track of all products in real-time, tracking a product’s quantity-on-hand and setting up reorder triggers to keep you updated, so you know exactly what you have and don’t have in stock.

While most POS ecommerce payment processing solutions include some type of inventory management system, there are POS systems that provide advanced inventory management features for a business to enjoy. Do your reaserch before you go on buying a POS terminal online!

⦁ Customer Management

POS eCommerce payment processing solutions are incorporated with CRM functions in your to help you identify and target your most loyal customers. The CRM function helps a business build strong relationships with its customer base leading to high customer retention and customer loyalty.

Moreover, POS eCommerce payment processing solutions ease up keeping track of customers’ purchase history, store customer data, provide loyalty programs, and utilize the data for email marketing and promotion.

⦁ Employee Management

POS eCommerce payment processing solutions will minimize the time spent on schedule enforcement, keeping track of employee performance, and other managerial activities.

Modern POS systems allow time clock functionality, minimizes employee theft, set sales targets, and keep track of your top performers.

The setup of a POS system may depend on the kind of payment method a business accepts and how it wants to organize end-of-day bookkeeping and sales. While there are varying kinds of POS ecommerce payment processing solutions that differ on the basis of design, features, and functionality, they all serve the same essential purpose: payment processing.

What Are the Types of POS Systems?

Types of POS Systems

Cash registers were the first step towards the modern-day POS systems we use today. While these registers certainly are a tool used to complete a sales transaction, they do not measure up to the features offered by the contemporary POS terminals.

Here are some of the most commonly used types of POS systems:

⦁ All-In-One POS System
⦁ EMV Chip Reader POS System
⦁ Self-Service Kiosk POS System
⦁ Cloud-Based POS System

Let’s now discuss each in detail to give you a better understanding of how each provides value to businesses.

⦁ All-In-One POS System

The all-in-one POS is essentially a complete system that features a smaller design footprint encompassing full-featured software and hardware components.

It combines all the features of a POS system in a single smartly designed configuration making it convenient and hassle-free. The all-in-one POS systems are quicker, robust, and tailor-made as per the specific industry a business operates in.

As these POS ecommerce payment processing solutions are tailored according to different industries and businesses, they are usually manufactured by one vendor. The only downside to an all-in-one POS system is that they are quite expensive. However, in the long-term, these systems prove to be incredibly beneficial that outweigh the high costs.

⦁ EMV Chip Reader POS System

EMV chip reader POS systems make a huge difference for not only consumers but business owners as well. EMV stands for EuroPay, MasterCard, and Visa, the organizations that initiated the revolutionary technology.

The primary function of an EMV chip reader is to prevent cloning and to eliminate other fraudulent activities. It protects by generating a unique code each time the card is used as compared to the traditional swipe-to-pay system using Magstrips, which are easily duplicated.

EMV has enjoyed being a dominant technology in Europe and Canada for decades and has been become widespread in the US as well.

⦁ Self-Service POS System

An automated self-service point-of-sale system lets customers check out on their own, leading to reduced labor costs, customer wait times, and unhappy customers.

The rise of powerful yet cheap POS technology has perpetuated the trend of self-checkout systems as more retail stores, restaurants, spas and salons, hotels, and even doctors’ offices embrace self-service technology with open arms.

The reason for its continuing popularity is not only the increase in order accuracy, faster checkouts, and low labor costs but a recorded boost in customer spend as well. A 2004 study found that customers who paid using self-checkout at McDonald’s spent 30 percent more on average as compared to those who opted for the traditional payment processing solutions.

The Intelligent self-service POS software can even be programmed to upsell products contributing to increased sales and revenues.

⦁ Cloud-Based POS System

Cloud-based POS systems provide a more streamlined process where information for transaction processing comes from a remote cloud service.

In simple terms, a cloud-based POS system stores and processes information and data online as opposed to locally on-premise servers.

Cloud-based POS systems are also known as POS applications due to their frequent usage on mobile devices. They are portable and updated in real-time, which enables the owner to access the data from anywhere as pleased. As compared to other POS systems, a cloud-based POS is a lower-cost equipment, since an existing iPad or mobile phone can be used as the POS interface.

These POS ecommerce payment processing solutions are beneficial for many types of businesses, including retailers looking to provide mobile checkout or restaurants wanting to offer table-side checkout services.

How Are POS Systems Beneficial FOR BUSINESSES?

Benefits of POS Systems for Businesses

A point-of-sale (POS) system is much more than just a checkout system or process. At its best, it acts as an outlet that enhances the business operations by elevating customer and employee relations with the business.

To achieve and maintain excellent relationships, you must find a POS system tailored to your business needs on a budget. But, if you suspect POS systems are not for you, give us a chance to change your mind.

What follows is a checklist of some prominent features of a POS ecommerce payment processing solutions that will surely make you a fan!

⦁ Systems integration

Many business work exclusively as an online business while most run the traditional brick-and-mortar stores. However, there are countless businesses, especially in this technological era, that exist in both the digital world and the physical realm.

For such businesses, a POS system offers online payment processing solutions that are easy and convenient. With a POS system, the data for both kinds of stores can be integrated, providing a cohesive customer experience and inventory control across multiple channels.

All POS systems provide different levels of integration, which may include integrating accounting software, marketing software, and some even allow setting up online ordering services.

⦁ Increased Efficiency

Do you like to wait in queues stretched out throughout the door of a store? Nobody does; especially not your customers. As a matter of fact, if checkout lines are too long, customers will get frustrated and walk out without making a purchase. Now, do you want that happening? We didn’t think so.

A POS system provides faster checkout solutions enabling a business to provide efficient services to its customers. Because when your cashiers have the right to tools for support, your operation will run more smoothly and competently.

With the use of POS systems, a business can engage customers, create a positive perspective, upsell some products, uplift the brand image, and make the most of the checkout experience.

⦁ Ease of Use

POS systems are easier to use as compared to the traditional payment processing solutions. How? For starters, POS ecommerce payment processing solutions are built keeping in mind not only the business requirements but the ‘human’ requirements as well. The most significant advantage of technological developments is that the new innovations are user-friendly, manageable, and adaptable.

The analog technology is being replaced by the more humane and intelligent technology, and that is its biggest selling point. Today, everything is digital. From young to old, each of us are somewhat aware of the use of innovations like mobiles, tablets, and computers.

A POS system integrates all the features of these systems into a more intuitive interface designed for the business activities. It is its user-friendliness that makes it easier to learn, resulting in short training periods and increased overall productivity.

⦁ Expanded Payment Capabilities

The world is moving faster with advancements and innovations rising every day. In such a dynamic world, a business needs to stay versatile as well to sustain and endure.

There is a varying range of payment processing solutions available for the consumers these days. From cash, EMV chip cards, mobile wallets to contactless payment processing solutions, the world is advancing, and your business needs to as well.

POS ecommerce payment processing solutions enable a business to accept diverse payment types readily. Accepting different payments is beneficial for the business as it increases its customer base categorized as per their preferred payment methods, which consequently increases sales.

Thereby, you can achieve boosted revenues and customer satisfaction with a single upgrade.

⦁ Greater Accuracy

POS system eliminates the hassle and stress that comes with traditional payment processing solutions. Unlike a cash register that requires manual input of information, a POS system is integrated with an easy-to-use interface with all the necessary data fed in it.

A point-of-sale system is assimilated with real-time data, which eliminates the need to input items and price individually, nor does it require to upload data into back-office systems, drastically plummeting the risk of human error.

Even when prices of a product change, they can be updated in the entire system, automatically. Therefore, the business does not need to have its employees perform any manual work while making a sale.

What are you waiting for?

Implement POS and enjoy features like loyalty, marketing, CRM, added value and benefits, increased sales. Moreover, polish up your image and attract more customers as employing a modern POS systems can make your business look more professional and modern.

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