What Is a POS Machine?
The full meaning of POS is “point of sale,” or, in other words, it’s where your transaction is finalized. The term itself can have a couple of different interpretations. In the narrowest sense, it means that the terminal that sits beside the cash register to process credit and debit cards, and any gift cards you accept at your business. More often, when you speak of a POS machine, you’ll be thinking about the whole terminal, that has an informative screen and the ability to handle every payment type. There are a lot of special-purpose POS devices, too, and they fall somewhere between the simple card terminal and a comprehensive, full-bore POS system. Whether your needs take you to the high-end or the low-end, every POS machine needs to handle some of the same basic functions.
A point-of-sale (POS) terminal is a hardware system for processing card payments at retail locations. Software to read magnetic strips of credit and debit cards is embedded in the hardware. Portable devices (i.e., not terminals anchored to a counter), either proprietary or third-party, as well as contactless capabilities for emerging forms of mobile payments, represent the next generation of POS systems.
Protect your POS Equipment
Criminals are increasingly targeting POS systems as a way of stealing payment card data. One way criminals access data is by planting a “bug” that can read PINs and cardholder information. Others have successfully used miniature cameras or video recording devices to obtain the information they are seeking. To help avoid being compromised, we recommend the following:
- Protect your equipment: Inspect your devices at the beginning and end of each day for signs of tampering, confirm serial numbers and ensure there are no missing screws or no new holes have been made to the devices.
- Safeguard the equipment in the POS area: To help prevent criminals swapping your equipment for their own, use secure stands, tethers and security cables; you should install your own security cameras, plus check the space for hidden cameras or unauthorized recording devices.
- Teach your staff how to recognize and prevent equipment tampering: Help employees recognize the signs of equipment tampering; validate all equipment service and repair technicians.
How a Point-of-Sale Terminal Works
When a credit card or debit card is used to pay for something, a conventional point of sale (POS) terminal first reads the magnetic strip to check for sufficient funds to transfer to the merchant, then makes the transfer. The sale transaction is recorded and a receipt is printed or sent to the buyer via email or text. Merchants can either buy or lease a POS terminal, depending on how they prefer to manage cash flows. Buying a system involves higher upfront costs while leasing levels out monthly payments, though total lease payments may end up being more than a one-time purchase over the useful life of the system.
ADVANTAGES OF A POS SYSTEM
THE FOLLOWING ARE THE BENEFITS OF A POS SYSTEM
Advanced Reports
Creating manual reports takes a lot of time to compile, complete and organize. It can become difficult to gather relevant information in your reports to fully understand the state of your business. With a POS system, the software allows you to create reports automatically to have a global view of your business.
With a POS system, reports are automatically created for several aspects of the business. This includes sales, contacts, prices, purchases, inventories, etc. Thanks to reports that cover several subjects, their analysis can help orient your business decisions. Also, it will be easier to know your company’s progress and to implement process and sale optimizations.
Multi-Store Functions
It can become difficult to manage several stores in a network, where each has specific needs according to their customers. Few points of sale companies offer the possibility to manage networks of stores or “multi-store” management. These features can significantly reduce the workload for your company that owns several establishments.
Technical & Technological Support
Several POS systems offer technical and technological support. Some suppliers provide services for their customers to keep their POS systems running at peak performance.
Some POS systems offer a support team for their customers. However, you must be careful when choosing a provider. Many vendors offer technical support, but some offer very little support. The support team can answer various questions. These can include questions about how the software works, technical problems, basic questions about the software, etc.
Alice POS can offer custom development to its customers. This custom development can be for specific needs and functions a company requires
Increased Revenues
By reducing your operating costs, you’ll probably save money. By saving that money, you can have more income in your pockets. Also, a point of sale software can offer various functionalities that can help increase your sales.
Alice POS has a revenue generator that allows you to get an idea of the impact of having our POS software and the profit that can be generated for a store based on our customers’ statistics. You can use a variety of features such as repairs, rentals, consignments, and more, to create new revenue streams. By offering multiple services, your store will tend to generate more revenue streams.
Cost Reduction
A point of sale can help you reduce your operating costs. According to a study by Intuit market research, a retailer with revenues of $300,000 can reduce costs by almost 10%, saving $30,000 a year by having a POS system.
It’s a good way to save money and redistribute it to other business activities in your company.
Time-Saving
By using a point of sale, you are likely to save more time in-store. The system can help you with several features that reduce the number of operations.
As mentioned in the previous points, the software can help you with inventory management, orders, purchasing, customer management and more. Some functionalities can even perform actions automatically. For example, the creation of real-time reports or the minimum quantity of products to keep in inventory. These features can save your company time.
The software can assist you in these different management tasks and reduce your workload.
Increased Efficiency
With a POS system, the efficiency of your store will tend to improve It can help your store to be faster and more productive.
There are many functions in your POS system that can help you to work efficiently and quickly in your shop. These include inventory management, promotion management, ordering and more. By using these various features, your business will probably be well organized and your decisions will be easier to make.
Fewer Errors
A POS system can help you reduce the number of errors in your business activities. The system can assist you with multiple functions to help you reduce mistakes automatically.
For example, with inventory management, the enumeration of your items is simplified by scanning your items. The system will automatically adjust your inventory when there is a sale or a return for example. You will no longer have to enter your items manually. This can greatly reduce the mistakes of miscounting when you enter your inventory in the system.
Besides, the point of sale automatically creates reports for sales, accounting, inventory, etc. You do not need to create reports by yourself and this minimizes errors.
Simplification of Operations
With a point of sale, your business operations can be simplified. Indeed, a POS can reduce the number of operations you perform in your store. For example, if your inventory management is computerized, you will only have to scan your items to have them recorded in your system. This allows you to keep track of your inventory. Carrying out manual inventory checks takes a lot of time and generates more operations to perform.
It is the same for reports, as the POS software produces real-time reports of your sales, purchases, customers and more. It saves a lot of time on your side because you don’t have to create the reports yourself and you avoid making mistakes.
By simplifying your operations, you will probably have more time to accomplish your projects. Also, your store can be much more productive and efficient.
24/7 Access to Data
Some POS are cloud-based, others are installed on-site with a local server. However, the POS installed on site are exposed to multiple risks such as data loss, difficulties in tracking inventory, risk of errors and others. Alice POS offers a cloud-based point of sale where you can consult your data anywhere with better protection.
With Alice POS, you can consult your data anywhere and anytime by logging in to your administrator account. You can follow your company’s activities in real-time even if you are outside your establishment. Additionally, your data is better protected from natural disasters such as floods or fires. This allows you to manage and control your operations even if you are away from your store.
Better Company Organization
With a POS system, your business may tend to be more organized. By being well organized, your business may become more productive, including more fluid communication with your colleagues and stores.
POS systems offer many features in this regard. This includes the management of your sales, inventory, customers, suppliers, etc. With these functions available within the same software, your company only has to use a single platform to perform their activities.
For stores that are part of a network, all members of the network can receive the same information, resulting in fewer communication errors. By reducing these errors, the company can aspire to increase their productivity, as well as increase profit.
This helps to facilitate the follow-up of all your business activities, as well as your evolution for each quarter for example. By knowing your evolution, it will be easier to set your next business objectives.
Better Service
A POS system may allow you to provide better customer service for your store by combining the benefits mentioned in this article.
In general, a POS system helps you improve your operations for your customers. This includes reducing waiting time, faster scanning of items, quicker payments, etc.
With these operational improvements, customers will tend to get better service and come back to your store for their next purchase.
Better Promotion Management
Having multiple promotions may be difficult to manage and to know which are active and inactive. By having a POS system, you may tend to be more efficient in running your promotions.
You just have to select the items you want to promote in the software, indicating the type of discount and the duration. Once you have set up your promotions, all you have to do is activate them.
With this function, you can save time in the management of your promotions. It should also be easier to navigate to find your promotions. This allows you to keep track of your active promotions.
Better Security
The security of a company’s data is very important. Your data needs to be accessible to the company’s authorized users only. With a POS system, your data is more secured from unknown intrusion.
Most systems offer double user authentication. This reduces the intrusion of malicious users into your system. Also, the administrator can quickly grant or block access to users.
If you want your data to be backed up and protected at all times, use a cloud-based point of sale.
Better Customer Satisfaction & Loyalty
With a POS system, it’s easier to exceed consumers’ initial expectations by providing fast, accurate and efficient service. By combining these three components, customers will surely be more satisfied and will likely return to your store.
With better satisfaction, customers will likely be loyal to your store. This can be a huge advantage for your business because it is often easier to keep current customers than to acquire new ones. By having a satisfied and loyal customer base, you can reduce the risk of losing customers and losing money
Better Purchasing / Supplier Order Management
Purchasing equipment for your business is essential. This is why a POS system is useful to properly manage your purchases from your suppliers. It allows you to keep track of all your orders placed.
Some POS software have open API that allow you to connect directly to your supplier. When you place your orders from your point of sale, you will be able to view all your invoices for your orders in your POS system. This gives you control over purchasing and allows you to keep track of items ordered from suppliers. When you purchase equipment from a supplier, you will receive an invoice that contains all the information about your purchases. This includes the products bought, quantity, description, cost, and more.
Also, a POS system allows you to plan your future purchases, as well as the minimum amount of products you need for your store. This helps to have better control of your purchases and to have the optimal amount of stock in your store to minimize your losses
How To Protect Your POS Equipment
Criminals are increasingly targeting POS systems as a way of stealing payment card data. One way criminals access data is by planting a “bug” that can read PINs and cardholder information. Others have successfully used miniature cameras or video recording devices to obtain the information they are seeking. To help avoid being compromised, we recommend the following:
- Protect your equipment: Inspect your devices at the beginning and end of each day for signs of tampering, confirm serial numbers and ensure there are no missing screws or no new holes have been made to the devices.
- Safeguard the equipment in the POS area: To help prevent criminals swapping your equipment for their own, use secure stands, tethers and security cables; you should install your own security cameras, plus check the space for hidden cameras or unauthorized recording devices.
- Teach your staff how to recognize and prevent equipment tampering: Help employees recognize the signs of equipment tampering; validate all equipment service and repair technicians.
Online Fraud Prevention
When making a sale online, by phone or via mail, your customers also want to know their personal data and account information is protected. So, you need the right information and tools to confirm all your transactions are valid.
As a leading ecommerce and direct marketing payment processor, we’re experienced in recognizing the signs of transaction fraud. You can leverage this knowledge and expertise and use it to protect against fraud with:
- Account Verification Service (AVS): Helps reduce your risk by verifying the cardholder’s billing address with the card issuer.
- Card Security Verification: This process looks at the credit card’s security value, which is the non-embossed 3- or 4-digit numeric code, and checks it against the issuer’s value on file. Payment brands offer these security programs. They are known as CVV2 (Visa®), CVC2 (MasterCard®), CID (American Express®) and CID (Discover® Card).
- Payment Brand Data Security: Helps you in your effort to comply with payment brand data security programs.
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