If you have a business, you may have heard of a POS. Join our discussion and learn more about this beneficial system.
When you own a business, there are many moving parts. One that many people speak of is POS. What is POS, and what do you need to know about it?
POS, or point of sale, is where a customer pays for a good or service. Most people recognize this spot. If you’re in a coffee shop, it might be on an iPad. If you’re in a thrift store, it may be a cash register.
Once you have a POS system, you can handle transactions well. If you’re still unsure about the point of sale, you’re in the right place. We’ll clarify POS and dive into further detail for your benefit.
POS System Meaning
The POS stands for point of sale or point of purchase. It is always where the customer pays for a good or service, whether in a physical store or online.
There is typically a receipt or proof of purchase that happens after the point of purchase. This item may be physical or digital. Many merchants have chosen cloud-based options as the world around them modernizes.
A quality POS benefits the customer and the company. Some locations place POS at the exit to implore someone who enters to buy something. Others help businesses market specific products they want to be sold.
Strategies for POS vary, but they all involve money and the exchange of goods and services. Staff can interact with the system to ensure everything is in working order for the company’s benefit.
As systems change, point of sale has become more and more interactive. Times are pushing away from the traditional cash register and toward online formats where data is more readily available and easier to access for most people. As a result, cash transactions have fallen significantly.
Benefits Of The Electronic POS System
Some benefits come with a quality electronic POS system which has become more popular as the world modernizes. If you are a store owner, it’s vital to know the good they can bring to your transaction processes on the market.
Here are some of the most prominent benefits of POS:
- Streamlining: An electronic POS system allows a company to streamline the purchase process. It coordinates the process and simplifies everything to a few buttons.
- Tracking: Through a POS system, you can track items like gross revenue, price accuracy, and patterns in sales.
- Tailored purchases: A company can use an electronic POS system to promote a specific product over another.
A business can use this data to make valuable improvements.
There is a lot to be said about traditional payment methods. However, you will find more benefits through an electronic POS system today. It’s a way to bring on more business through the ease with a simplified point of sale location and transaction process.
What Are The Hardware And Software Components Of A POS?
There are many hardware and software components involved in a point of sale. These ensure that the customer and worker can handle everything and that the data transfers correctly in a system. If you’re interested, it’s critical to know the components involved in the point-of-sale process.
Here are a few of the typical hardware and software components in a point of sale:
- Cash register
- Credit card reader
- Cash drawer
- Barcode scanner
- Connected device
- Receipt printer
- POS software for transactions, such as square
These help everything run smoothly in a transaction.
Every modern business needs some POS software to monitor transactions. The amount of hardware they need to operate correctly depends on the business run and the transactions made. Some companies don’t need more than an iPad to process payments and print receipts for their work. Hardware and software work together to allow the POS to work.
How Does A POS Work?
We’ve discussed point of sale, the benefits of using an electronic version, and the hardware and software involved in the process. Now, it’s time to talk about how a transaction works at a point of sale. An ideal transaction will be simple for the customer and the person behind the counter to handle.
Here is what you can expect for a typical POS transaction:
- The customer picks a product: The customer determines which of your goods or services they want. They take it to the POS.
- The price is calculated: At the POS, hardware, and software determine the price, along with taxes and additional payments.
- Payment: The customer pays for their item with a proper transaction.
- Finalization: The sale is finalized. The customer receives a receipt, and the business gets money for what they provide.
The customer leaves with their goods or service, and the business has funds to work with for their future.
A good POS can handle dozens of POS transactions a day. The easier the sale, the more customers feel secure checking out, and the more a business can bring to the store on a typical day. There’s a lot to love about a simplified POS in the busy market today.
Potential POS Features
There are many features included in a quality POS system. You should know about some of the best to help you pick one that will benefit your company in all the best ways.
Here are a few of the best features that can come with a POS system:
- Product selection and lookup: You can look at products in your catalog and determine the price and features.
- Customer-facing experience: The system can turn to face the customer, providing a more personal transaction experience.
- Catalog handling: A quality POS system can catalog your items and handle storing them in the system.
- Customer management: A quality POS system can handle customers and manage information such as emails if they go inside the transaction.
These are just a few items you can expect in a quality POS system.
Write down the items you expect to see in your point of sale located in a business. If you are an online store, you will have different needs than someone managing a physical storefront.
What Is POS Debit?
Point-of-sale debit is a specific type of transaction made on a point-of-sale system. It is a transaction that comes right from a debit card, meaning the money shifts from the buyer to the seller rather than in debt. Most transactions happen through a traditional credit card system, but there are circumstances where that might not happen.
POS debit transactions can happen online, at an ATM, or in an online buying space. They typically require the user to verify their identity with a PIN or a signature. It’s a little more complex than the traditional credit card purchase.
POS Transaction Types
If you want to purchase something at a store or are looking into investing in a POS system, it’s vital to understand the transaction types on the market. There are plenty available.
Here are a few ways people can pay through a point-of-sale system:
- Cash
- Credit
- Debit
- Chip cards
- Card-not-present transaction
- Magstripe credit cards
- Secure online payments
People have all types of ways to pay.
If you are a cash-only establishment, your POS system will vary from someone who works only in secure online payments. All POS systems are not made the same in the world of business. You should know that going in.
How Do You Pick The Right POS?
It can be tricky to pick the right point of sale system for your business. You want something easy and affordable, but you also want to ensure you don’t skimp on a quality system for your customers and your company. How do you pick the right POS for your walk of life?
Look for a system that can handle the needs of your business. It should reinforce your system and make life easier at work rather than more difficult.
A proper POS should also handle shortcomings that already exist in the system. It should take them and provide support to help your company better deal with the flaws.
Consider hardware. Pick one with all the features you need to succeed. You also want to pick the one you can handle. Don’t select tech too complicated for the average person to navigate.
In Closing
As you can see, a quality POS system goes a long way in a store. It can help customers feel more comfortable and store valuable information for your business. Determine the faults in your business, find your technology comfort level, and move forward to provide excellent goods and services on the market.
Whether you have a store online or on the street, there is a quality POS for you. Customers and employees should have no trouble with a transaction once you have the ideal hardware and software in your store. The more prepared you are for the future, the better. You can handle it.
Shawn Manaher is a former financial advisor, has founded 5 online businesses, and is a coach, speaker, podcast host, and author. He’s been featured on Forbes, The Consults Corner on TAE Radio, The Writing Biz, What’s Your Story, and more.