A point of sale terminal is more than just a tool to process sales. It’s a defining part of your retail experience, offering insights, efficiency, and convenience.
From the rhythmic “cha-ching” of James Ritty’s 1879 cash register to today’s barcode beep, the point of sale terminal (POS) has been at the heart of commerce for over a hundred years. Over that time a lot has changed. POS terminals are indispensable tools for business, streamlining operations and enhancing the customer experience.
What Is a POS Terminal?
Point of sale terminals, commonly referred to as POS terminals, are electronic devices used by businesses to process sales transactions. It’s the modern evolution of the traditional cash register but many can fit in the palm of your hand and come equipped with a robust feature set, including:
- Transaction Processing: It allows customers to pay for their purchases using various payment methods such as credit cards, debit cards, and mobile payments.
- Receipt Generation: After a successful transaction, the terminal prints or sends a digital receipt to the customer.
- Sales Tracking: Modern POS terminals can track sales, providing insights into which products are popular, peak sales times, and more.
- Inventory Management: Some advanced terminals can also keep track of inventory, alerting when stock levels are low.
Beyond the primary functions, many POS terminals offer additional features to enhance the retail experience. Some of these features include:
- Loyalty Programs: Integration with loyalty programs allows businesses to reward repeat customers.
- Employee Management: Track hours, and sales by employee, and even manage schedules.
- Analytics and Reporting: Get detailed insights into sales trends, customer preferences, and other valuable metrics.
- Contactless Payments: With the rise of digital wallets and NFC technology, many terminals now support contactless point-of-sale terminal transactions, offering a faster and more convenient payment method.
- Integrated Barcode Scanners, Printers and Cameras: Some manufacturers combine these features in terminals that aren’t much bigger than a smartphone, giving merchants the ultimate in versatility and portability.
What’s the Difference Between a POS Terminal and a Card Machine?
Point of sale terminals and card machines (or card readers) are different devices. A Card Machine captures and sends card data to your payment processor. A POS (point of sale) terminal is a more comprehensive solution. Many POS terminals have integrated card readers, but they also include software for things like inventory management and they provide a full suite of checkout capabilities like generating receipts, logging sales for accounting, capturing customer data, and scanning barcodes. Many modern POS Terminals are so small that they resemble the card machines that sat next to tills on countertops in stores worldwide. Others can be almost as small as your smartphone. Unless you already have a POS solution and are just looking for a new card reader device, you’ll likely want a POS terminal to accept payments in physical stores.
Who Needs a Point of Sale Terminal?
If your business operates in a physical location and accepts any form of payment other than cash, a Point of Sale Terminal with an integrated card reader is almost a necessity. The beauty of POS systems is their adaptability – there’s a terminal to meet every business’s unique needs.
Connectivity Options
For businesses with a fixed location, like retail stores, wired connectivity usually suffices. Restaurants, however, often require the flexibility to bring the payment terminal directly to the customer’s table. In such cases, wireless POS devices are invaluable. Service providers who are always on the move—think hair stylists, plumbers, or locksmiths—may find mobile POS systems to be the most convenient, allowing them to process payments wherever their work takes them.
Seasonal Operations
What if your business only operates during certain seasons? No problem – Rapyd provides POS terminals for short-term hire. This allows you to offer the convenience of multiple payment methods, including debit and credit cards, e-wallets, and other alternative options, without the burden of year-round costs.
Online Businesses
If your business also has an online presence, you’ll need a payment gateway, which functions much like a card reader but for the digital realm. It enables you to accept various payment methods securely over the Internet.
Businesses that Operate in Physical Locations and Online
Getting a POS Terminal and a payment gateway from a single provider can give you the omnichannel advantage. This approach simplifies payment management, allowing you to gather data across all platforms. Dealing with a single vendor often leads to lower costs and operational efficiencies.
Types of POS Terminals
There are several types of POS terminals available, catering to different business needs:
- Countertop Terminals: These are the traditional terminals you often see at retail checkouts. They’re connected to a power source and often to a phone line or the internet.
- Portable Terminals: Battery-operated and wireless, these are perfect for restaurants where payments might be taken at the table.
- Mobile Terminals: There are purpose-built mobile terminals, like the PAX A77. There are also apps or devices that turn smartphones or tablets into POS terminals. Ideal for pop-up shops or businesses on the go.
- Contactless Terminals: Specifically designed to handle NFC (Near Field Communication) payments, these are becoming increasingly popular due to the rise of contactless cards and mobile payment systems.
How to Choose the Right POS Terminal
Choosing the best point of sale terminals for your business depends on your specific needs. Here are some factors to consider:
- Business Size and Type: A cozy café might love a mobile terminal, while a bustling bookstore could crave a countertop companion.
- Payment Methods: Make sure your terminal is fluent in all payment methods, especially the trendy contactless dialect. Businesses that cater to tourists should consider a global payments POS that accepts ewallets and popular credit cards from international markets.
- Integration Needs: Ensure your new POS terminal plays well with your other merchant software.
- Budget: While scouting for features, keep an eye on the price tag and any sneaky hidden fees.
- Features: List down your must-haves and nice-to-haves. It’ll help you spot your perfect match.
Whether you’re a small shop just starting out or an established entity looking to upgrade, there’s a POS terminal out there that’s perfect for elevating your business.
