Understanding Basics of Point of Sale System with Examples

 

 

Today’s point-of-sale system has transformed far beyond just a computer-based cash register. It does so much more than processing payments and logging transactions. Some of the top point-of-sale Systems have advanced features like customer loyalty programs, employee scheduling, inventory management, and more. With so many features and brands in the market, choosing the best POS system for small businesses can be a confusing endeavor.

We’ve got you covered on that, and we will go on to it later, but before that, let’s know how a point-of-sale system works.

How a Point of Sale System Operates?

Nowadays, most point-of-sale systems are digital, and they log a transaction by scanning the barcode of the order/product, calculating the cost, and accepting the payment. The system accepts card payments by inserting, swiping, or tapping the card onto it. The point-of-sale system confirms the payment reception by connecting to the cardholders bank after entering a PIN code.

EMV chip and near-field Technology (NFC) are two robust features that make these transactions more secure. Any of these technologies help detect counterfeit cards. Moreover, a point-of-sale system can accept payment wirelessly from a contactless card or a smartphone, ensuring that the data is not stored on the device.

Why to Opt for A Point of Sale System

The first benefit of acquiring the best POS system for small businesses is automating important sales data tracking. The system collects data from daily purchases to help retailers monitor pricing accuracy, sales funnel, gross revenue, and inventory changes. This automatic data collection can detect cash discrepancies and cash flow, leading to profit loss.

A few more features include customer retention or engagement software, inventory management, sale reporting, and more. Some POS systems can also route funds directly to the retailer’s bank account after each sale.

Payment Modes a Point of Sale System Can Accept:

·         Cash

·         Online payments

·         Magstripe card payment

·         Chip card payment

·         Contactless payment

Best POS System for Small Business: An Overview

There are many point of sale systems for small businesses, but we are going to analyze three of the best on the market: Clover, Square, and PayPal. They have all the features that the best POS system should have, but these differences set them apart.

POS Hardware

Square and Clover offer smart terminals with a complete all-in-one POS system. This full range allows them to accept payment anywhere through portable card readers. However, PayPal only offers credit card readers.

POS Software

As the best point-of-sale system, Clover hosts robust software with all the above-mentioned features. Clover and Square will provide insight into sales, revenue, profits, and refunds, but Clover will do it at no extra cost.

Other Differences

·         Clover is best for businesses who need personalized solutions at no extra cost.

·         Square is designed to be an industry-specific POS system.

·         PayPal is best known for eCommerce capabilities despite being a simple credit card reader.

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