If you run a customer-facing business, you will undoubtedly have heard the term Point of Sale (POS) system: but, what are POS systems? POS systems are commonly mistaken for being limited to just the hardware terminal; however, this is not the case. A POS is a collection of hardware, software and processes that enable a business and its customers to complete a sale.
Having an efficient POS system is crucial to gaining transactional agility and ensuring a smooth customer experience, whilst also benefiting from comprehensive inventory and sales record keeping and management.
Today, AptPay looks at POS systems in more detail so that you can make the right choice for your business.
What is a POS Terminal?
A POS terminal is a piece of hardware used to process card payments using special software solutions. In small businesses, you will still find that many of them still have regular tills, terminals and scanners.
In 2022 and beyond, there are far more hardware options to choose from when it comes to your POS terminal. You are no longer limited to the classic retail store till and barcode scanner. Instead, you can choose from countertop card machines as well as portable card machines, mobile card machines with wifi and GPRS functionality, allowing you to streamline your transactions through card payments via chip & pin, magnetic stripe and contactless.
Common POS Hardware
Most POS systems (except virtual terminals) have multiple hardware elements. The most commonly used tools include:
Barcode scanner
This will read the barcode on a product so it can be rung up and added to the order total.
Card reader
Card readers will allow your customers to pay for orders in-store via debit or credit card, whilst come card readers will accept gift cards, magnetic stripe and contactless payments such as Apple Pay.
Cash register
Calculates and processes customer transactions.
Cash drawer
A place to safely store cash. Some terminal software can track paper transactions to simplify end-of-day banking and minimise fraud/theft.
Connected device
Portable devices – such as tablets or iPads – are good second screens or mobile alternatives to stationary monitors.
Receipt printer
The printing of a paper receipt shows customers exactly what they purchase in real-time. Also useful in affirming the customer’s consumer rights and ownership of the product and when they purchased it.
Terminal
Worker transaction interface – usually stationary.
Common POS Software Functions
As POS systems technology develops, POS software delivers more and more handy functionality to help your business grow and sell more. From simplifying the payment process to managing information about payments, customers, employees and transactions – here are some of the must-have software features of any POS system.
Customer relationship management (CRM)
CRM tools can help you personalise consumer marketing and customer service by providing data on what your customer purchased and when.
Employee management
Typically known as team management software, this will demonstrate employee working patterns, timetables and performance as well as for clocking in and out.
Inventory management
Such software will allow you to track product inventory for stock and analyse trends – some may even have the ability to reorder popular stock.
Payment processing
A primary function of POS systems: processing payments each time a customer completes a purchase.
POS reports
Shows your sales, returns and cumulative earnings.
Receipts
Demonstrate a customer’s purchase and rights over a product and as a consumer. Receipts create a visible paper trail and make the returns and refunds process simpler.
Tipping
Some POS software allow customers to tip digitally when paying their final bill. Believe it or not, this functionality increases the likelihood of a customer tipping.
The Benefit of POS Systems
As a business owner, you must weigh up the benefits of a modern POS system in comparison to your traditional cash register. Although the thought of changing your established processes may be daunting, embracing a POS system can add agility to your sales and transaction process and help your business grow.
Smarter Inventory Management
A POS system can empower your internal process by providing up-to-date inventory information, including:
- Returns – when items are returned by customers have the ability to update stock levels if the product is unused/unopened and fit for resale
- Shrinkage – track theft and products sold for lower than the price set
- Restock – Get low stock alerts and automatically order more stock of popular items
Increased Profitability
As POS systems can increase commercial agility, consistent performance can increase your revenue and profitability by:
- Facilitating expansion across multiple locations – unified sales platforms means that location is less relevant for conducting sales
- Security – more digital transactions and tracking, as well as less cash, means less theft and a more robust paper trail
- Consumer convenience – allowing customers the choice of whether they pay for purchases via cash, chip and pin, contactless or other card-based payment methods
Track Sales in Real-Time
POS systems can provide real-time, in-depth data and performance analytics on your sales:
- Track employee performance – set targets, track highest sales performers and create workplace incentives
- Product popularity and performance – Which products are flying off the shelves and which are not? You can learn how and when certain products sell most and experiment with prices, store location, shelf quantity etc
- Overall sales and transactions – track and assess payment methods, number of transactions, the average cost per transaction, refunds, returns and transaction process time
How Do POS Systems Work?
If you are unfamiliar with POS systems, you may want to know how such a system works and what it does, step-by-step:
- Consumer makes the decision to purchase an item or service
- A POS system will calculate the price and quantity of products, including any VAT
- The customer finishes their purchase by paying for the goods with their chosen payment method
- POS sales translation is complete and your customer receives their receipt. The customer then leaves the premises with their goods or will await delivery of an item you arranged with the POS system
Best POS Systems for Small Businesses
The best POS System software will depend entirely on your industry, as well as the scope and reach of your business. Here, we will list a number of useful software solutions.
POS Software for Hospitality and Restaurants
- Nobly – an admirable choice if your location struggles with consistent WiFi connectivity
- PointOne Hospitality – an excellent solution for restaurants, cafes, market stalls, bars and nightclubs
- Zettle Food & Drink – good for bars, cafes and restaurants
POS Software for Retail Businesses
- Casio V-R7000 & V-R7100 – perfect software for medium-to-large scale retail businesses with multiple locations
- EPOS Now Retail – a great system that prioritises customer support and ongoing employee development
- First Data Retail – ideal for retail stores which run frequent sales and promotions
Find the right POS Systems with AptPay
Don’t leave money on the table by limiting your services to only those customers who carry cash. Enabling you to take payments from all major payment card vendors – including Visa, Mastercard and American Express – as well as mobile payments such as Google Pay and Apple Pay, AptPay’s card machines facilitate swift payments with a clear transaction trail at a low cost.
Interested in a new POS system for your business? Speak to our experts today.
