POS system, POS terminal, POS materials – what are they?
There are at least three variants of the term POS in parallel: POS system, POS terminal and POS materials. To avoid understatement, let’s start by explaining each of them.
POS cash systems – modern sales management
A POS system is collectively referred to as software and devices used to monitor sales transactions. They are equipped with a number of functions necessary for retailing. The key to effective use of a POS system is the combination of all these functions, so that your store, restaurant or service outlet can operate at maximum efficiency.
POS systems can take the form of software designed for traditional payment processing devices, such as payment terminals. However, there are POS variants – applications written for tablets or smartphones running Android or iOS. Combined with a fiscal printer, we then get a fully functional fiscal cash register – without the need to purchase a physical device.
Important!
POS systems usually require a subscription payment. Despite not having to purchase a device, your company will therefore incur a fixed monthly cost. Point of sale system providers generally provide several forms of cooperation. The longer the term of the contract, the lower the monthly amount to be paid.
POS terminals and applications
Every payment terminal is a POS terminal. These are devices that we are familiar with from hotels, gas stations or discount stores. A payment terminal is actually a POS system built into the device. However, if an entrepreneur decides to purchase a physical terminal, he will not be able to “remove” the software from it to install it on other hardware.
There are two types of terminals available on the market:
- Fixed terminals – their feature is the need for a permanent connection to a power source and the Internet. This means that we do not need to take care of the battery level or charge it regularly. However, it is worth remembering that in the event of power outages, you will need backup power – and that for both the terminal and the router. Without access to the network, the terminal will not work. A stationary device is a good solution for stores and permanent service points. It is possible to buy pinpads (including wireless ones) for each terminal, which will make it easier for customers to make purchases.
- Mobile terminals – devices equipped with a rechargeable battery. Thanks to the built-in battery, they can operate without a power connection for many hours. The more advanced the model, the more network connectivity it offers (Wi-Fi, GPRS/3G, Bluetooth). Portable terminals are used by courier companies, restaurants or carriers. This is a particularly good solution if you want to allow restaurant customers to pay at the table (for example, in the restaurant garden).
Sometimes this group also includes mobile applications – virtual online terminals that require only software and a smartphone or tablet. We mentioned them earlier. The advantage of physical terminals over phone apps is the simplicity of the device and lower failure rate. Apps, on the other hand, win with versatility. By turning a smartphone into a terminal, a company can enable employees to perform a wide range of tasks by equipping them with just one device – a company phone.
POS materials and POS marketing
The third term we describe is the least related to the topic of the article. However, it is worth mentioning to avoid confusion over nomenclature.
POS materials consist of all advertising materials aimed at increasing sales of products or services directly at the point of sale (hence point of sale). These are all kinds of brochures with information about a product or promotion, posters, flyers or roll-ups. In a word: physical advertisements, placed at the point of sale or its immediate vicinity. Their function is to draw the customer’s attention to the advertised product – so that he or she makes a purchase right away, of course.
POS marketing, on the other hand, is all marketing activities that use the POS materials you have.
POS systems for catering, online stores and more
POS systems are used in the food service, retail, and service industries. They are comprehensive software that is a great help to those running a business. POS systems usually face two big tasks – supporting salespeople in customer service and managing warehouse data.
However, this software has quite a lot of optional features in store, which can be crucial for your business. Check out the possibilities of the point of sale system for your business!
Software to support customer service
One of the most important tasks we will use the POS system for will be customer service.
- Payment processing – POS software allows customers to use their preferred form of cashless payment. Devices equipped with the latest software support payments using:
- payment cards,
- mobile payments (Apple Pay, Google Pay, BLIK),
- coupons,
- fleet cards,
- prepaid cards,
- gift cards.
Some devices and apps also support offline, recurring, installment and deferred payment.
- Integration with a fiscal printer – POS systems allow integration with fiscal printers, and thus the issuance of receipts to customers.
- Barcode scanning – one of the most basic tasks of POS systems – speeds up customer service, makes it easier for salespeople and reduces the risk of human error.
- Order management – POS systems are not just software for selling products in a store. These applications allow you to administer orders composed of multiple items, edit selected products or split payments. This feature is particularly useful in restaurants, where guests can choose different dishes and change their composition (for example, giving up a particular ingredient or ordering an additional one). Splitting the bill, on the other hand, will be suitable for large groups of customers who spend time at the same table, but make payments separately.
Warehouse data management
- Constant access to data – a feature that allows point-of-sale staff to verify stock levels, check if the product name matches, or look for other variants (e.g., larger or smaller garment sizes). In the case of a chain of stores, this integration makes it possible to check stock levels also in the other stores or in the central warehouse. This is a useful feature that makes it easier to retain customers. Even if the desired product is not available, the retailer can offer to bring it from another store or arrange home delivery.
- Full product history – POS systems allow you to see the history of goods. The database will include dates of delivery, receipt into stock, etc. The software also records the sale of the product, and allows you to put the product back into stock in case of a return.
- Generate and print labels – thanks to the aforementioned integration with a fiscal printer and a permanent connection to the warehouse, the POS system can easily generate labels with which to mark goods.
Reporting
POS systems offer a range of features to track financial performance and payment transactions.
- Generate fiscal reports – most systems allow you to create and print daily and periodic reports (based on a specified date range).
Other features of POS systems
In addition to the most essential POS features we mentioned above, these systems can do even more. Other features include:
- Support for multiple currencies – along with DCC (dynamic currency conversion) function. This solution allows customers to pay in their own currency. Often this way of payment is more advantageous for them, in turn, the seller charges a commission on currency conversion.
- Cashback – payment terminals integrated with cash registers allow consumers to withdraw cash at the store. Merchants who make this service available to their customers earn a commission on each such transaction.
- Cash deposit – some terminals are also equipped with the reverse functionality, where customers can deposit cash to their card using the store’s terminal.
- Phone top-up – the payment terminal can be used to top up the account associated with a cell phone.
- Tipping – with this function, the terminal will accept tips as a separate part of payment, and the additional amount will go to the right person, i.e. the employee who is logged in and currently operating the device.
- Generating QR codes – in keeping with the principle of giving customers as many payment options as possible, modern POS systems allow you to generate a QR code that takes you to payment. Although rarely used, this option can determine customer acquisition – for example, if standard payments don’t want to work.
- One terminal, many businesses – in support of micro-entrepreneurs, some manufacturers of POS systems make it possible to take advantage of a service in which several profiles can be created on a single device (such as a terminal). Each of these profiles can serve a different entrepreneur, which allows micro-enterprises to run their businesses simultaneously while remaining completely separate.
A comprehensive POS system or a traditional cash register?
This is one of the most frequently asked questions among entrepreneurs. Modern point-of-sale systems, while offering a wide range of features not found in traditional cash registers, are not without drawbacks.
So is it worth choosing a sales system? Yes, as long as you realize two important aspects associated with it.
- Price – POS systems are much more expensive than fiscal cash registers. In most cases, however, buying a cash register instead of investing in the implementation of a POS system will only be an apparent savings – and that’s because of the very limited functionality. Keep in mind, however, that when planning to deploy a POS system, you may want to check on occasion whether you qualify for a payment terminal allowance.
- Training for employees and launching new software – operating POS systems, while generally intuitive, can be difficult for people who are not used to using such solutions.
Despite these doubts, it is worth investing both time and resources in implementing a modern POS in your company. A multitude of functions, full integration with the warehouse, adaptation to prevailing standards and regulations (especially in the context of supporting multiple cashless payment methods) – all this makes the POS system a better solution – especially for companies serving multiple customers or having more than one point of sale.
