POS stands for Point Of Sale system. This is a vital piece in running any business as most people use cards instead of cash nowadays.
This technology has made it easier for businesses to process payments from their customers whether they are purchasing a product or paying for a service, as most people now have cards and use them regularly.
How Do They Work?
It typically operates by receiving information from the customer’s card as they swipe through an electronic terminal connected with a computer. The issuer bank approves or rejects the transaction.
If payment is approved, the total amount is charged to the customer’s card, and the POS system records the transaction.
The best part is that it’s simple enough for an average user to learn how to use it in just a few minutes! It also makes your job easier.
What Are The Different Types?
Let’s check out the different alternatives to see the best credit card payment processing method for your business.
Traditional POS Systems
POS systems have been around for a long time – Traditional POS is an essential aspect of any company with many transactions or customers. Fortunately, traditional point of sale software is easy to use and very functional.
Traditional POS systems are very customizable. Some are designed for businesses in specific industries and come with features that provide a better service. Most traditional POS systems come with many different features, including inventory management and upsells/down sells.
One major benefit of a traditional point of sale system is compatibility with other systems, like cash drawers or credit card machines (not all modern POS are compatible). Another great feature about many traditional POS systems is their reliable customer database features.
With a traditional POS system, you can track all transactions. You should be able to see things like sales by day/week/month, the top products sold at each location, what’s most popular with which demographics – all useful information for maximizing business potential.
Mobile POS Systems
Mobile POS systems are a great alternative to a cash register system onsite. It’s a smartphone or tablet that processes the payments. Mobile POS allows employees to take orders on the go, increasing efficiency and decreasing wait time for customers.
Some businesses use a mobile POS system if they’re offering their products off-site. Most mobile POS companies allow you to download their software into your mobile device and then purchase the hardware for credit card transactions.
Online Payment Processors.
A payment processor accepts the money from a customer that wants to purchase something online. Payment processors are different depending on what type of business; for example, an e-commerce site would require one kind of payment process, while a brick and mortar store may use another system. You can set up your own or outsource it, so someone else does all the work for you.
Online payment processors are becoming more popular than ever. This is largely due to the rise of e-commerce, which has created a huge market for online transactions that need processing.
One of the advantages of this method is payment aggregators are easy to install and don’t require much paperwork. They charge a monthly fee, plus a transaction fee and a percentage of sales.
However, some of the cons involve delayed funds. You’ll receive your money after a 24 to 48-hour hold. Payment aggregators assume the risk your customer may declare fraudulent charges, so if they see suspicious activity, they could hold your account, which translates into larger fees. As volume grows, so does risk, so do fees.
Payment Processing Company in Brecksville, Ohio
The type of point-of-sale system you need will depend on your type of business. Certain Pay offers several traditional processing options depending on the needs and size of your small business.
We offer traditional solutions for your business with our POS options, mobile, and online payments.