Point of Sale Software

The Point-of-Sale System (POS): What Is It?

Modern point-of-sale (POS) systems are no longer limited to cash registers due in part to new technologies such as the cloud and mobile devices. Point-of-sale systems are still comprised of hardware and software components but include many new functions too. One such function includes the synergies, which are created by assimilating them with different kinds of back-end applications like inventory management and customer relationship management (CRM).

Point-of-sale systems, as a result, are basically “cash registers on steroids.” POS software expanded the basics of the cash register directly into credit card payment processors and back-end accounting. The cloud is also very popular because it allows small to midsize businesses (aka SMBs) to make use of advanced point-of-sale systems. They’re better able to avoid the added expense of maintaining and deploying back-end servers at each location.

There are many kinds of payment processing solutions available to use such as new mobile payment methods and credit card readers, however, the POS systems we reviewed for this article are full-on cash registers. They can handle numerous kinds of payments and communicate well with back-end accounting software.

Besides just cash registers, when people are discussing POS systems, they’re referring to the software itself, which can be cloud-based or client-based. The software permits you to issue receipts, track sales, and perform back-office functions. Some of these back-office functions include noting what sells and what doesn’t, tracking employee productivity, and replacing inventory. All of the POS systems reviewed primarily focus on SMBs that sell anywhere from between 1-25 outlets. A few of these systems can take up to 100.

Main POS Product Features

Good point-of-sales software should let you receive payment for services and products. There are many ways people can get paid these days. You want your POS system to be able to handle every method you might need including debit and credit cards, checks, and cash. Some POS systems will even accept Apple Pay or Amazon Pay, which are “contactless” payment types.

An important thing to be aware of is that when chipped cards, Visa (EMV), MasterCard, or Europay are introduced, this tends to complicate things for small vendors. EMV is the latest standard when it comes to providing more security than the swipe-and-sign technology we have all become accustomed to over the last 10 years. New or additional hardware will be needed to give these cards the ability to “dip.” Some point-of-sales systems charge extra for that.

Depending on the needs of your business after you have achieved the minimum functionality, there are some other features you might want to look for such as the ability for customers to use two forms of payment for surge pricing, gift cards, or special pricing (for special customers or sales) to allow for returns.

Another electronic payment system that is growing exponentially is the near-field communications (aka NFC) transaction which has become commercialized by Google Wallet and Apple Pay, two major mobile giants. You want to be sure that your POS system can handle all of these latest emerging systems, but you also need to know if that implementation will hinder or help your Payment Card Industry Data Security Standard (aka PCI DSS)-compliance efforts or whether it will please or annoy your customers.

Product support may not be related to POS, but you will need to pay very close attention to it just the same. You won’t be able to get someone on the phone very easily if the system crashes during the start of your busy period. Luckily, this problem can be solved by finding the appropriate support plan to suit your needs. But even if you are able to get a hold of someone on the phone, that doesn’t mean your system is back up and running. You will continue to lose revenue when impatient customers walk out of your store. This is where having a backup solution is an absolute must especially in the case of cloud-based point-of-sale systems. POS systems can suffer from internet connectivity problems and software issues. You not only want to make sure your vendor has your back, but you also need to know how and where the support will come from as well.

Hardware to Consider

The hardware half of the POS system equation is just as important as the software half, especially in cloud-based solutions. Mobility is one of the most popular trends in today’s point-of-sale systems because it refers to the ability to move the functionality of a POS software out from the cash register and into the hands of the employees for quicker, more customer-oriented business transactions. This trend is adding new important areas to the most usual POS setup including an additional focus on support for smartphone and tablet endpoints, security, and wireless connectivity. Today’s POS systems can run on most available tablets including the Microsoft Surface Pro or Apple iPad. POS systems also offer reliable add-ons and hardware systems such as barcode scanners, cash drawers, receipt printers, and card swipers.

One advantage of tablet-based systems is their mobility. Payments can be processed on the store’s floor (which is very useful for cutting down lines at the register during the busiest times of year), at expos, or outdoor pop-up shops. One popular system, the Square Point of Sale, is known for offering tiny dongles that will connect to a tablet and allow you to swipe credit cards while you’re on the go. It’s always good to know that this kind of mobility is available even if you might not need it right away.

The amount of information you can supply to customers is another advantage. Desktop POS devices can even be flipped over so the customer can enter their contact information or sign on the screen. Certain states including California require customer-facing screens so that customers can view all of their sales information while a sale is being rung up.

Back-Office Functionality

Earlier in this article, we mentioned that POS systems weren’t solely based on taking payments. They will also track your employees, inventory, and customers. You want your system to be able to track what items have been sold, how many items remain, when your item is out of stock, and also notify you in advance so the item can be restocked while you’re making sales. Likewise, your system should be able to subgroup items. For example, your system can tell you if you are out of blue birdcages but you still have three red birdcages available. Your system should allow you to print out barcodes for items that might not already have Universal Product Codes (UPCs) so they can be scanned during a sale.

The ability to promote analytics is another feature to be on the lookout for. Being able to track how much inventory is still available is one thing. It’s another thing to see when certain products sell and to whom. Being able to predict that twice the amount of red coffee cups were sold in November compared to April will tell you how many to order in the future. If sales of your cheapest candy goes up quickly every weekday when the kids are coming home from school, an extra salesperson may need to be hired to help out in the afternoons.

Being able to track your employees is a very useful tool. You want POS software that will clock your employees in and out for the day as well as offer different security levels depending on the status of certain employees. You don’t want a cashier to have access to the same back-office functions a manager can have access to.

Last, but not least, you need a POS system that can collect customer information to use for loyalty programs and other promotions. Some systems offer functionality that’s similar to what is offered by CMS packages. Offering loyalty perks, offering coupons or advertising deals, or sending emails to thank your customers for sales are all examples of this.

Something you need to be fully aware of is to make sure that your POS system is functional offline. Networks always go down during some of the most inconvenient times, especially during in-person events. Even though your point-of-sale system may be temporarily out of contact with your back office, you still want to be able to continue selling.

If you would like to do business in-person and online, some systems will give you the ability to create an online store that will pull items from an inventory database that is exactly the same as your physical store. Online presences have become necessary now more than ever. A few systems such as Vend POS and Shopify POS have already included it as part of their package. This is a very important feature to consider if you plan to open a small retail business.

Your data is extremely valuable which is why the ability to consolidate it to a central location if you have several retail locations can put your data at risk online and also become very complicated all at the same time. You should consider storing your data with a business-grade cloud storage provider that’s secure and make sure that every session between your point-of-sale system and any remote location are secured through a virtual private network (VPN).

Payment Processing

Bear in mind that if you will be accepting debit and credit cards (which are required by most businesses), you need a service that will process all of your payments. The service will cost you a percentage of your earnings, but there are a few services you can use for free such as Square Point of Sale so long as you are willing to process your payments through them. Shopify POS and Intuit QuickBooks Point of Sale charge monthly subscription fees for the use of their software along with an additional fee for payment processing. There are even others like Vend POS or NCR Silver that work with numerous third parties but do not provide the processing services themselves. POS systems that do provide processing services will also work with many third parties. Only NCR Silver, which is one of the products covered in this POS system review, charges a one-time price for their software.

You will need to think about how your needs relate to the POS system you decide to use. If you plan to stick with the payment-processing service you are currently using, you should look at POS systems that will work with that system (known as “integrated processing” because the outside company’s payments are incorporated into a POS). If you’re starting out from scratch, you should look for a POS system that offers a convenient all-in-one service. You’ll know exactly who to call if something goes wrong.

Support

Most POS systems are designed to be very simple to operate. But when you are dealing with back-office functions like personnel management or inventory, things can sometimes go wrong. It’s always good to have a reliable support system in place. POS system vendors offer a variety of support options including tutorials, videos, and articles on how to use their products. And for an extra fee or as part of the package, most POS systems also provide setup assistance.

If your business operates on the weekends or has late hours, you will need to search for a supplier that offers 24/7 support so you won’t be stuck during a busy Sunday sale without help if you need it.

Attracting More Sales

Good POS software enables you to boost your ability to attract more customers and track and make sales depending on your needs. Once you have chosen the system that will suit the size and type of your business, you should talk to its representatives. All that’s left to do after that is to give it a try to see if it has all the features you need to fit your company now and in the years ahead.