Point of Sales Terminals: Types, Benefits, & Differences

With the rise in the popularity of contactless payments, Point of sales terminals is essential in today’s stores. Seven in ten respondents to a poll conducted by the consulting company Dynata reported previously using a contactless approach. Consumers in the UK are more likely to have access to contactless payments than any other country, with 81% of respondents saying they have this option.

Having POS terminals for accepting credit card payments in-store may also save valuable time while increasing sales. And no business would intentionally lose revenue because certain consumers only buy when they can pay with a credit card.

Furthermore, millennials, a rapidly expanding group with considerable economic clout, drive contactless and mobile payment methods. Retailers that accept card payments of any kind should broaden their payment options and adapt to the growing popularity of contactless technology to stay competitive and increase sales.

In this blog, we will learn about what is POS system, what is POS hardware and software, how a point of sale system work, etc., in detail.

Before we talk about POS terminals – Here is a mind-blowing stat which will make you believe the need for point of sale devices.

As of the end of India’s fiscal year 2021, the country has more than 4.7 million POS terminals. Except for the fiscal year 2021, businesses using POS terminals (such as restaurants, supermarkets, and petrol stations) showed a consistent increase in this technology. In recent years, the Indian government has actively promoted digital payment methods, and the nation is well on its way to becoming a cashless economy.

What is a POS Terminal?

A point of sale POS terminal is the hardware that allows businesses to receive payments to finalise a customer’s transaction. One such instance is cash registers. However, a POS terminal may be anything from a mobile with a plugged-in card machine to a tabletop terminal that prints receipts, scans bar codes, and more.

A point-of-sale system includes POS terminals, including all necessary POS hardware and software. The most effective point-of-sale systems include tools for managing inventory and employees and processing payments.

How Does a POS Terminal Work?

The standard procedure to accept payments with a credit card or debit card involves the POS terminal reading the card’s magnetic strip to determine whether or not there are sufficient funds to cover the transaction and then processing the payment to the merchant. When the deal is finalised, a receipt is generated for the customer or provided to them digitally through email or text message.

The choice between buying and leasing a POS terminal is left up to the individual retailer’s discretion. While monthly payments are more stable with leasing, the overall cost of the lease may exceed that of a one-time purchase during the system’s useful life.

There has been a shift in recent years from proprietary hardware to a mobile POS system that is software-based and can be installed on a tablet or other mobile device. Manufacturers of point-of-sale terminals are racing to catch up by releasing their iterations of mobile and portable POS terminals.

These gadgets are commonplace at popular shops and eateries, where the proprietors understand that consumers despise waiting in line to pay. POS system buyers place a premium on affordability, functionality, and ease of use. The safety of the systems is crucial in today’s increasingly interdependent society.

Types of POS Terminals

So now that you know what a point-of-sale terminal is let’s dive into its various types. The following choices are available to a business out of many pos systems.

Standalone Terminals

A standalone card terminal is used to process payments. Before a consumer may use a credit card, the cashier must enter the total into the machine. Since the ePOS system and the POS terminals cannot communicate, the cashier must manually enter the transaction into the former.

Card information is encrypted and sent straight via the payment gateway, where the card networks authorize it in real time to accept payments. The payment gateway then sends the authorization answer back to the POS device. Because no payment information is entered into or stored in the ePOS system, transaction security is greatly improved, and the merchant’s PCI compliance burden is lessened.

Semi-Integrated Terminals

The owed sum is entered into or scanned into the ePOS system and then sent to the POS terminal in a semi-integrated setting. The customer makes a payment by tapping or inserting their contactless card into the device and entering their identification number.

The cardholder’s encrypted information is sent immediately via the payment gateway, where it is encrypted again and submitted for immediate authorization by the card schemes. The authorization response returns to the POS terminal from the payment gateway, relaying the confirmation to the ePOS system.

Increased payment security and PCI compliance limited to the POS terminal come from a semi-integrated arrangement since sensitive card data never reaches the ePOS system or other business infrastructure.

Fully Integrated POS Terminals

With a fully integrated POS terminal, the total due is sent to the terminal by scanning an invoice or having a new invoice created by the ePOS system. The cardholder must insert or touch their card and enter their PIN to complete the transaction. After being encrypted by the ePOS system, payment data is sent to emerchantpay’s payment gateway for instant authorization by the card networks. The authorization reply is sent back to the POS terminal or ePOS system from the payment gateway.

In contrast, only one ePOS and POS terminal component in a fully integrated terminal handle the sensitive card data. Numerous advantages, such as sales and transaction data and inventory management, are available to retailers with a fully integrated terminal.

Additionally, with a unified terminal, retailers need only keep track of one set of crucial data, streamlining operations and allowing for more informed decision-making. Also, the cost of maintaining PCI compliance for any hardware or software that handles or saves credit card information will climb significantly.

Cloud Computing Terminals

A cloud computing terminal is the most contemporary POS system available. Your provider manages your server, so you do not need to instal one in your business. If an issue arises with the system, the provider will resolve it for you. As a result, you have more time to handle your business than manually maintaining your server and producing backups.

Moon POS is a cloud-based point-of-sale system that offers various benefits, including greater data security, continual upgrades, and support. This is quite intriguing since your data is always protected from disasters such as floods and fires.

Additionally, the data is secure and searchable from any location at any time. This is handy for business owners with several locations since they can get inventory and sales records for each store in a single location.

Mobile POS Terminals (mPOS)

A mobile terminal, often known as mPOS (mobile Point of Sale), is a POS system that can be used with a mobile device like a tablet or smartphone. It uses a card reader to process payments. Any smartphone or tablet computer with the appropriate mobile transaction programme installed may function as a point of sale terminal on the go.

A Mobile POS terminal is a practical option for startups without the resources to spend much on a traditional POS terminal. Access to the Internet and mobile devices is needed to do business and use your point of sale system. Saving money by not having to acquire outdated software for each location is a nice bonus.

With cloud computing, the information may be safely kept online. Businesspeople who must often travel to different locations would benefit greatly from the ability to sell their wares and counsel on deals whenever they like.

Benefits of Using a POS Terminal

Here are the key benefits of having POS terminals for your business.

Time-Saving

Time is saved using a point-of-sale system since they are loaded with features that cut down on administrative or tedious activities.

POS software may streamline several business processes, including stock control, order processing, customer support, supply management, and report generation. For instance, a point-of-sale system may provide real-time stock information, making it much simpler to manage your stock levels.

Enhancing Service to Customers

If you want repeat business, you need to provide your clients with a reason to be satisfied. Investing in a reliable point-of-sale (POS) system will facilitate the smooth progression of a purchase. Another way that point-of-sale systems might boost sales is by presenting complementary items to shoppers.

Improved Revenues

A point-of-sale system may boost your revenue and enhance your customers’ and employees’ shopping and working experiences. A few point-of-sale (POS) systems provide useful data about your sales trends, letting you adjust your strategy when necessary and monitor the effects.

Easier Employee Management

Certain point-of-sale systems may record employee information, such as sales per employee and total hours worked.

This gives you a more comprehensive picture of your company’s personnel and facilitates better strategic planning. By tracking sales data, you can see what’s selling and who’s doing well, allowing you to improve future strategies and aid weaker areas.

Multi-Store Systems

Problems arise while trying to provide uniform service to several locations. One point-of-sale (POS) system may streamline the management of a chain of establishments. This ensures that customers can expect the same high-quality service, convenience, and efficiency at any given shop.

Since stock will be kept separately at each location, a POS system is essential for keeping track of everything in stock. Data from all stores may be used to forecast demand, monitor performance, and make informed decisions about where to place orders.

The Best POS Terminals for Small Business Owners

All shops, regardless of size, need a solid point-of-sale system. Customers need convenient payment options that work in every setting. When combined with modern technical capabilities and widespread payment options, POS systems are a must for every store that aspires to expand and thrive.

Moon POS offers businesses a variety of high-tech POS terminals that comply with all the current security standards and can connect to several networks in multiple ways, including wirelessly.

Additionally, our card payment systems allow for the easy acceptance of gratuities, a much-requested feature in many industries, including the food and beverage industry, the retail beauty industry, and the service industries such as hair salons.

Our POS terminals provide you with the means to maximise your company and protect it from every angle, thanks to their customer-centric design, user-friendly interface, and cutting-edge security features.

Securely and conveniently accept all major credit cards, debit cards, Apple Pay, Google Pay, and other mobile payment systems. Our POS terminals may be connected to your existing ePOS infrastructure in just a few easy steps. Over a decade, Moon POS has helped merchants of all sizes accept more card payments, increasing sales and improving the in-store experience for cardholders.

What is the Difference Between a Terminal and a POS?

Identifying which system is optimal for you and your organisation is straightforward, given that the distinctions are well-defined.

How to Choose the Right POS Terminal for Your Business?

The requirements for a POS terminal vary from one firm to the next. As you deliberate about which terminal best suits your needs, keep in mind the following.

Cost

The key factor is deciding how much you’re prepared to spend on a POS terminal. Remember that you may incur additional costs beyond the initial investment in hardware, such as subscription fees for the software you choose and transaction fees for processing payments.

While a smartphone and reader terminal may be sufficient for a small, mobile retail store, a more robust system may be necessary for restaurants and other bigger enterprises.

Type of Business

A countertop POS terminal should be used instead of a portable one if your business is located in a brick-and-mortar shop, and vice versa if you don’t have a fixed storefront. Most POS systems are optimised for mobile devices, so you can turn your tablet or smartphone into a little POS terminal by downloading the appropriate app and connecting a card reader.

Self-service terminals for diners may streamline the ordering and payment process, whereas point-of-sale terminals with sophisticated stock control are preferred in retail. Terminals with check-in and appointment-scheduling functions are very useful for small service organisations.

Method of Payment

You should be able to accept NFC, magstripe, and chip cards at your POS terminal. Certain checkout machines support QR-code transactions and applications that allow customers to pay each other directly.

Merchant accounts and payment gateways (or all-in-one solutions like Stripe) are essential for every online store that wants to accept customer payments.

Conclusion

By this point, you have known the importance of a POS terminal in the business. Not only from the business aspect but also from the customer’s point of view. If you haven’t tried a POS system like Moon POS, then you are missing out on a lot of things.