If your goal is to improve the payment processing system for your business, you might have heard of POS or ePOS. Now you are probably asking what a “POS system” is.
A POS system is also known as an “ePOS” or point-of sale system. It is a combination between hardware and software that allows customers to pay for goods or services at their physical or online businesses.
POS hardware usually takes the form a card reader/register, tablet or card reader. The software connects everything and includes functions to manage inventory, staff, customer data, and other functions. This will be discussed later.
A merchant may have a physical-front or online store. You will require a commercial software system that can quickly process payments and refunds, as well as accurately record transactions. This sounds straightforward, right?
If you begin to consider how these situations might play out in detail, whether tourists are paying with different currency or card types, or loyal customers who pay with cash, store credits, gift vouchers, or both, then a simple sale becomes more complicated.
POS systems go beyond a point of sale.
This is why a POS system has been designed. They are equipped with the ability to handle customer requests at the point to sale.
POS systems can drive down costs and improve margins when used properly. They also don’t have to compromise service quality. There are tons of options. Shopify, Square, Vend and Vend top our list of recommended point-of-sale systems.
POS systems offer business insight, which can be used to improve operations and pinpoint areas of improvement. They alert you when inventory runs low, notify your business, make sure you comply with payment regulations and avoid any fines.
Point of sale systems may also be called a POS (point-of-sale) cash register. These systems offer much more than the traditional cash register. Modern digital POS systems are a competitive advantage for your business. You can check in on your customers no matter where you’re located.
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How a POS System Works
As stated above, a POS is made up hardware and software that works together to process sales as well as payment transactions at point of purchase. POS hardware could include a card machine scanner or order management screen. POS Software, however, offers cloud-based solutions that allow secure payments.
It performs basic cash register functions such ringing up items according to department. It can track sales, add taxes, and create receipts.
Learn more about How a POS works.
One person using a tablet pos system
Tablets that are POS-enabled can be used in restaurants to display menu items or take orders. (Image credit: Getty Images).
Types of Point-of-Sale (POS) systems
Multichannel POS
Ideal for: Multichannel eCommerce brands.
Multichannel POS systems are able to integrate with your website and third-party or partner online market places. Additionally, they can be used in conjunction with social media outlets to keep you relevant.
Mobile POS (mPOS), Tablet POS
One of the greatest benefits of POS software is their flexibility. Many POS software applications can be accessed on any device. Mobile and tablet POS systems offer flexibility for expanding your business, such as opening pop-up shops or expanding your existing location.
Best for: Expanding or traveling
POS apps
Most companies have an app, as do POS companies. A POS application can be used as an extension of your POS system, or the main software dashboard to oversee all sales transactions.
Best for: Mobile businesses that move between different sites
Software Open-Source POS Software
Ideal for: An enterprise with specific technology requirements and multiple integrations might benefit from open-source POS Software.
This type point-of sale system allows for you to directly modify the source code of its creator to create a custom POS solution to suit your business.
Benefits of a Point-of-Sale (POS) system
Customer Experience at Smother
Improved customer satisfaction and loyalty
Greater security and better service
Faster customer orders
Efficient purchasing/supplier ordering management
Management of customers faster
Payouts processed faster
Simpler Invoicing
Management of inventory better
Regular updates
Fewer human errors
Time-saving
Cost-effective
Advanced Reports
Multi-store functions
A POS system offers many benefits. For example, you can get more time back for your employees by selecting a system that allows time management.
A POS system has many other benefits, including increasing productivity and reducing cost to streamline operations; reducing human error; detailed sales reporting; improving customer service; and, of course, the ability to improve the overall customer experience.
Before you decide on a POS solution, consider the features and customization options that your business requires. Below are examples of possible scenarios
Retail business owner
Electronic goods retailers will need to have serial numbers in order to identify the models and make of their products.
Own an online fashion company
Clothes retailers will, however, need to make sure that each brand’s product has its own SKU. Due to the high price of jewelry, jewelry stores will use POS systems that issue alerts for incorrect billing attempts.
Convenience Corner Store Owner
In order to be able to offer a discount on groceries, point-of sale systems require all goods to include both sell-by and unit measurements.
Elements of a POS systems
Modern POS systems go beyond simple cash registers. They can do so much more than transaction processing. They are widespread in many sectors, including retail, hospitality, and leisure.
Some POS systems combine software and hardware, while others disconnect the two.
Combination POS system
Some POS systems combine software and hardware, while others separate them by connecting a dumb’ terminal with a server that is either located on-premise or in another location. Cloud-based POS systems allow terminals to connect directly to an internet connection to run software that automatically updates.
ModularPOS systems
Many units are modular and can be connected to display metrics such as order value or product weight. Others can scan barcodes, produce receipts, and handle security requirements – such as credit card processing systems used to take credit or debit cards payments.
Software side of POS systems can also be customizable, allowing businesses the ability to manage loyalty and membership programs that give customers discounts for future purchases. UX/design are key to their success.
Terminals at restaurants, for instance, will prioritise usability over speed. Large buttons on large and bright monitors make it easier for staff members to book tables for customers with disabilities.
Handheld Point-of-Sale systems
However, a handheld EPOS terminal at a marketplace stand will be no bigger than a creditcard while being able to hold a 4G SIM to connect to the internet and process online payments.
Find out how much a POS systems costs.
Cashier swipes groceries from POS system
ModularPOS systems are perfect for food shops as they can weigh an item. (Image credit : Future
POS systems: More than transactions
A POS system is able to reduce reliance of manual processes. Businesses can use it as a tool to digitize processes and reduce reliance in spreadsheets. POS systems are powerful in that they provide immediate, actionable data that allows tasks can be accomplished efficiently and rapidly.
POS systems can be used to better understand customers
This includes the ability for customers to create profiles and store data to help them understand their customers. This allows you to target customers through direct marketing campaigns by creating customer groups, like VIP shoppers.
Monitor employee performance
POS systems let you track your employees’ performance and allow customers to tip your workers at predetermined percentages. This is especially beneficial for companies that work in the service industry.
With ease, track sales and product data
POS systems can also help you monitor the trend of items in your inventory and provide reports that will allow you to know when they are most popular. It is possible with digitised product catalogs, which track inventory and update quantities automatically as buyers buy them.
Whatever your reason for wanting a POS solution, it is important to assess your business requirements before deciding which kind of solution you want.
Our experts have prepared the following articles to assist you in making an informed decision: How do I choose a point-of-sale system for a retail shop? How do I choose a small business POS? How do I choose a place to eat at a restaurant, bar, or food truck POS?