WHAT IS A POS MACHINE AND HOW CAN I COMPARE POS TERMINALS?

What is POS exactly?

POS simply stands for Point Of Sale, which refers to the place at which transactions take place.

Your POS machine (POS system or POS terminal) is the device that’s used to add up and take payments for what’s being purchased. It can consist of:

• the machine that does the adding and holds the cash – which may or may not be used in conjunction with a standalone card reader (which processes the payments), OR

• a machine/system/terminal that ‘talks to’ (integrates with) a card reader connected to it by cable or Wi-Fi (which streamlines the payment process).

But there’s a lot more to a POS machine than all that competing terminology.

In a restaurant for example, your POS machine could incorporate a table ordering and kitchen briefing system, whilst being integrated with an EFTPOS terminal you can take to your tables. So, the one system manages everything from taking the order to taking the payment.

In a retail environment on the other hand, key components of the POS machine can be the barcode scanner, the receipt printer, and inventory management.

Depending on which POS machine you purchase, you may also be able to pinpoint which dishes (or products) are the most popular, which may not be worth keeping on the menu (or your shelves), and when the busiest times of trade are. It may also incorporate stock control and ordering software. And that’s just the start.

How could a POS machine help my business?

A fully integrated POS system (a POS machine integrated with an EFTPOS terminal/machine card/device reader) is akin to a great business partner. It could help inform key business decisions through reporting insights, while helping streamline your day-to-day processes. Some of the ways that retail and hospitality businesses could benefit from having an integrated POS system are:

• Helps save time across key operational areas of the business

• Helps reduce the likelihood of mistakes through human error

• Can improve the customer experience and adds a sense of professionalism to small businesses

• Can help small businesses scale with multi-site capabilities

• Can collect data about customer behaviour that can be used in loyalty programs

• Identifies popular items, and busy/slow trading periods

• Can provide valuable sales and inventory management insights.

How do I compare POS machines?

Every business is different, so will have different POS needs. Remember that a POS is not a standalone machine, but an interconnection of capabilities that together enable you to process customer-facing transactions efficiently – while supporting your business processes.

To help find the best POS machine for your business, develop a shortlist by considering and comparing the products that have your ‘must have’ features. They could include:

• Size, weight and ease of use

• Offline mode. You’ll want to make sure that you can still operate in the event of a network outage

• Real-time reporting and analytics

• Multi-site management capabilities as your business grows

• Ability to take orders and facilitate payment tableside or anywhere in store

• Table management functionality (a must-have for restaurants)

• Capacity to manage split bills, refunds, tips etc.

• Integration with value-adding software (i.e. accounting, ecommerce, reservations, loyalty)

• Advanced sales and ingredient-level inventory management features

• Data storage in the cloud (rather than locally)

• 24/7 customer support

• Integrates with an EFTPOS terminal

• Mobile capabilities for businesses on the move (market stalls, food trucks etc.)

• Ability to build and utilise customer profiles for loyalty

• Low technological footprint - as compact a POS system as possible.