Views: 0 Author: Site Editor Publish Time: 2024-10-21 Origin: Site
A POS terminal processes different types of possible payment methods. Ideally, the terminal you choose for your business can accept all of the following payment types:
Due to their increased security measures, chip cards embedded with EMV technology are growing in popularity in the U.S. In fact, under EMV compliance guidelines, fraud liability falls on the party with the less advanced payment type, so terminals that can’t accept “dip” cards are more likely to pay out for fraud losses.
Even though credit card companies are phasing out credit cards equipped solely with magnetic strips, magstripe cards are still widely used. Thankfully, it’s easy to find chip and swipe card readers on the market.
More and more consumers are using credit cards with contactless payment technology, as well as NFC-enabled digital wallets like Apple Pay and Google Pay. This method is significantly faster and more hygienic than most other methods, and the revenue from contactless payments is projected to reach $6.25 trillion by 2028, according to a 2021 study by analysis platform Research and Markets.
If you have an online store in addition to an in-person shop, your POS terminal should accept online payments as well as physical card transactions.
If your business is exclusively online, you don’t need a physical POS terminal. E-commerce businesses run with a merchant account and a secure payment gateway, which you can acquire through separate providers or bundle together through a POS provider like Stripe or Square.
POS terminals streamline the sales process by doing much more than simply processing payments.
After accepting payment, POS terminals can offer customers the option of choosing whether to receive a digital receipt (either via text or email), a printed receipt or no receipt.
Terminals can also present pre-calculated tipping options that customers can choose by tapping on that same user-friendly screen. Most POS terminals can also provide refunds, tax calculations and sales discounts and allow you to set up recurring payments or create invoices.
Many POS systems on the market offer accompanying features to aid business operations that are managed through that same payment terminal. These include inventory management, insights on sales trends and customer behaviors, employee scheduling and wages, marketing and more.
You may also be able to integrate other apps you use for your business with your POS system. For example, Clover integrates with apps like MailChimp, Gusto, Xero, Yelp and others, turning your POS terminal into a hub for all your business management needs, from emails to reviews to accounting.
Different businesses have different needs from a POS terminal. Consider the following to help determine which terminal is right for you:
Brick-and-mortar stores should prioritize a countertop POS over a mobile POS system, or vice versa if you’re not attached to a physical location. Most POS software is compatible with mobile devices like smartphones and tablets and can be paired with a card reader to make your smartphone into a smaller-scale POS terminal.
Restaurants may benefit from self-service terminals for customers for easy ordering and payment, while retail stores often prefer a terminal with advanced inventory management. Small service businesses work well with terminals that have scheduling and check-in features.
At a minimum, your POS terminal should be able to process NFC, magstripe and chip cards. Some businesses rely on QR-code payments and peer-to-peer payment apps, which some terminals are equipped for.
E-commerce businesses will need to be able to accept online payments, too, which requires a merchant account and a payment gateway — or an all-in-one solution, like those from Square and Stripe.
Finally, consider the price you’re willing to pay for your POS terminal. Keep in mind that in addition to the hardware itself, you might also need to pay a subscription for any software you choose, as well as per-transaction payment processing fees.
Small, mobile retail shops can function with a smartphone-and-reader terminal, while restaurants and larger businesses may need to invest in a larger system.
