Terminal vs Point of Sale Systems
When you’re running a business, choosing the right option for taking payments can become overwhelming. If you’ve been getting by with a simple payment terminal to process transactions not only are you settling for a lower threshold of security, but you are missing out on an opportunity to grow your business using the data automatically generated by using a point of sale system instead. Like traditional terminals, a point of sale system gives you the ability to process credit and debit cards, but comes with enhanced security through more options for taking payment and dozens of applications that will help run your business more efficiently. The team at SilverEdge is trained to help you make the right choice for your business needs.
A terminal may still be the right choice for some businesses, but you should be aware of the limitations of the terminal you choose.
Some things to consider are:
- Security – choose a terminal that has the latest payment processing capabilities – swipe, EMV and NTC are now the standards that will keep you compliant with EMV regulations that took effect in October of 2015.
- Transaction size – if your average transaction is very low, then a terminal with only swipe and pin code capability could work for you, but there are risks. Your business will be responsible for any fraudulent charges made with a “chip” card on your system. The credit card company is no longer liable and resolving these issues can get expensive.
- Mobility – handheld devices are available.
- One-time sales vs. repeat customers – if your business moves around a lot, for example to various outdoor markets, then maybe you don’t have a lot of repeat customers and won’t need to track their information.
What should you consider when choosing a point of sale system?
- Security – POS systems now come standard with the most secure and latest payment processing capabilities – swipe, EMV and NTC technology.
- Marketing opportunities – It’s easy to keep track of repeat customers and reward them for their loyalty with a POS system. A customer’s entire buying history is at your fingertips and it is easy to reach out to them about offers once their information is in your system.
- Inventory – A POS system is a very efficient way to track your inventory and stay on top of buying trends in real time. You’ll be able to access those numbers from any computer as well, so you can keep track of your business even when you can’t be in-house.
- Seasonal business – if your business is subject to seasonal fluctuations, then tracking buying trends from previous years will inform your marketing decisions and give you the ability to stay ahead of inventory needs. POS systems contain a variety of applications to help you do this automatically.
If you are ready to talk with a SilverEdge representative about the right choice for your business then contact us today!