POS systems have become some of the most widely used tools in retail businesses and restaurants for processing payments and managing inventory and customer data. It’s no understatement to say that POS systems are some of the most versatile tools available, but let’s focus on what they’re designed for: payment processing. With a POS system, you can accept just about any modern payment method, but we’re going to cover just five of the most common methods.
Using a POS System
Thousands of businesses trust a POS system to handle their payments, and for good reason. With POS you benefit from increased reliability and security, quick processing, versatility, 24/7 customer support, sales tracking, and report generation. You won’t find another software that covers so many business functions for such a low price. Most POS system prices start at around $100/month, but there are also options to pay per transaction instead of paying the monthly rate.
Cash
There seems to be a misconception that modern POS solutions don’t accept cash, but the best POS system on the market currently doesn’t shy away from cash transactions. While many consumers are moving away from making purchases with cash, that doesn’t mean it’s not still widely used. In fact, according to AARP, the older generations actually prefer cash to other methods. It’s younger folks that are switching to credit, debit, and mobile payment types.
Credit/Debit Cards
Most POS solutions will have either swipe processing only, or both RFID chip insertion and swipe processing. Either way, you can process credit and debit cards with your POS software. Credit card processing is quick and simple with your POS system as you can provide tip options, taxes, and fees, and even split payments to more than one medium all from the same system. If your customer wants to pay half in cash and half with a card, you can do that with your POS software!
Credit and debit cards will likely be around for a while, even with things like mobile and touchless payments becoming more popular. Cards are quite secure and convenient, and not everyone likes having all of their payment options connected to a mobile device. Some people just prefer the look and feel of a physical card!
Touchless Payments
A touchless payment can come in the form of a card with an RFID chip or even a phone equipped with Bluetooth technology. Some popular touchless payment methods are Apple and Android Pay and Google Wallet. Essentially, all of the customer’s payment info is stored in the app that can broadcast the information to the terminal, which then processes the payment.
Many older credit card terminals are incapable of accepting these newer payment methods, so if you’re running old software/hardware, you might actually be selling your business short by not appealing to customers who prefer these touchless methods.
Online Payments
Many businesses also trust their POS software to handle their eCommerce needs. Because you can pretty much accept any payment method on either platform and inventory is synced across just one software program, your on and offline operations become easier than ever before.
Even retailers like Amazon are jumping into the payment processing game with Amazon Pay for shoppers, which allows consumers to checkout on other merchant sites with their Amazon account. With this in mind, you’ll want to make sure your business is set up to accept such online payment methods, so you don’t lose potential sales.
EFT or Bank Transfer
Not all POS systems are capable of accepting an electronic funds transfer (EFT) directly from a bank, but some are. This is one of the most secure ways to make a payment and is used in eCommerce spaces more so than in brick-and-mortar stores. Even though this method of payment is perhaps one of the least used and can take several days to process on each end, it’s still important to be able to accept it with your POS software, if possible.
Conclusion
Using a POS system allows you to process these commonly used payment methods and then some. Not only will you get a secure and versatile platform to work with, but you’ll also get the support of your POS provider for when issues inevitably arise. Thousands of businesses and millions of customers all over the world make use of this software and affirm that it is the future of payment processing.
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