Payment Technology
Technology (Device) Used To Take Payments For our overview video on Taking Credit Card Payments visit this post. There are literally thousands of different devices that are used to take credit card payments. With the advent of the smartphone and mobile technology new ways of taking credit cards are emerging every day. From a very general standpoint, listed below are the three major device categories. Technology (Device) Options Dedicated (Standalone) Terminal Online (Internet) Gateway Integrated Software / Hardware Solution Dedicated (Standalone) Terminal The oldest and most common solution in a retail environment is the dedicated standalone terminal. These hardware devices are durable and relatively inexpensive and thus they are still the most popular device for business that take face-to-face, card present transactions. This is also a common device used by mobile and telephone order merchants, but is quickly being replaced in those environments for better options. However because a dedicated standalone terminal can only process credit cards and for security reasons typically do not integrate easily with additional software, they are limited. The merchant lacks the ability to store important data such as inventory levels and customer info, which must be stored with a separate tool if kept track of at all. Online (Internet) Gateway The online or internet gateway has risen immensely in popularity over the last few years. This is in part due to the need for online gateways to work with a shopping cart for ecommerce transactions. The larger reason for the rise in use however is due to the emergence of virtual terminals and (app based) mobile processing. Both virtual terminals and mobile apps typically use online gateways such as Auth.net to transmit credit card information securely. 3rd party applications and developers have used previously complex integration and encrypted code to create easy and friendly user interfaces. Previously this technology was only utilized in the ecommerce setting for integration into shopping carts. However the increased use of mobile smartphones opened up for processing mobile. The benefits of an online or internet gateway are that software updates are seamless and hardware costs are low. The addition of a USB or phone compatible swiper also gives the user access to card present rates. The limitation is that access to the internet is required. Even if a merchant has a traditional terminal and has no need for processing mobile, having a virtual terminal back-up is a good idea in case the hardware ever fails. Integrated Software / Hardware Solution Integrated software and hardware solutions have been around as long as dedicated standalone terminals and make use of hardware (typically a PC) and peripherals such as receipt printers, USB magswipers and barcode scanners. This hardware works in concert with a software program designed not only to process credit cards but also to track additional data such us customer information, inventory and more. These are critical elements for large retailers and business that require seamless tracking of data at the point of purchase. This solution also frequently comes with a touch screen interface which is a necessity for fast paced restaurants, bars and night clubs. As technology has improved, traditional siloed solutions have become obsolete as more integrated solutions offering more flexibility, efficiency and effectiveness. A good example is with Intuit, who offers processing along with desktop, mobile and ecommerce solutions. Intuit allows the merchant to integrate all of these solutions into one account for fast and easy tracking and integration. Coupled with Intuit’s accounting software Quickbooks, it makes for a powerful cohesive...
Read MoreMobile Credit Card Processing
What is the Best Mobile Payment Solution? With the rapid development and wide spread use of smartphones over the last 5 years, mobile payment processing has found a new platform for expansion. Previously if you wanted to take payments on the go or if you were a full time mobile business such as a contractor, plumber, painter or trade show merchant; you were pretty much limited to an expensive and bulky wireless terminal along with additional wireless transaction fees. Enter the smartphones, mobile payment apps and card reader/printer peripherals. iPhone and Android phones coupled with a solid payment app have pretty much made the traditional wireless terminal extinct. Here are a few reasons why mobile phones are better. No need for an additional piece of equipment No need for separate merchant account No additional wireless processing fees Hardware does not go out of date Connectivity through existing phone ports or Bluetooth Interface is sleek and becoming more recognizable to customers Now that we understand the benefits of utilizing your mobile phone over a traditional wireless terminal, the next questions should be, “What is the best mobile credit card processing solution?” A better way to phrase it, is, “What is the best platform that will give me the most options for processing and hardware integration?” While Square and Intuit mobile processing solutions have become widely popular in the last few years, they are not the best fit for every business. This is especially true for companies that process more than $3,000 per month in debt/credit cards. For those looking for solutions that not only give the business owner merchant account options but also hardware compatibility check out our review of the three (3) best solutions at the link below. Check out our review of the Best Mobile Credit Card Processing...
Read MorePOS Evolution: Retail and Hospitality
The Evolution of POS Systems in Retail and Restaurant Industries POS is an acronym that stands for Point of Sale or Point of Service. Basically, it is a structured system that businesses use when there is an exchange of products and service for monetary value. When it comes to retail industries, POS means retail point of sale. Moreover, when it comes to restaurant industries and other hospitality related business, POS means point of service. POS systems are applicable in many business industries such as department stores, restaurants, hotels, stadiums and retail outlets. A POS system is employed at the cashier or checkout counter where the transactions occur. As technology advanced, the trend for POS systems in various businesses has also developed over time. Here are the POS systems used by retail and restaurant industries. POS Systems of Retail Industries A retail industry provides products and services to consumers. Typical examples of retail industries include supermarkets, malls and other retail stores. The retail point of sale for these retail industries is located at the cashier stand where the buyers place their items to a counter for totaling of the cost. Usually, the counters are long and there are moving belts to transport the products near the cashier. Then, the cashier scans the item and obtains the total amount that should be paid for the products bought. The buyer will then have to pay. The early POS systems of retail industries include electronic cash registers. As technology developed, there were already advanced computers that could be used to make the payment processing faster and more efficient. Scanners also contribute to faster transactions in retail stores. The cashier simply needs to pass the item through the scanner and the computer will automatically register the product and the pricing details. Software used for credit card processing gives the customer convenience in paying for the items they bought. Today, touchscreen monitors are also used by many retail stores. POS Systems of Hospitality Industries Unlike retail industries, most restaurants are dedicated towards providing more hands on service to the consumer. Examples of these restaurant industries can be cafes to upscale sit down restaurants. Prior to electronic point of sale, checkout was cumbersome and prone to errors while nightly close was a very long process. Waiters or cashiers would have to list the orders of the customers on paper. Then they would have to go to the kitchen to give the order to the kitchen staff. After that, they will go back to the customer to bring a hand written receipt with the total cost of the order. With the advent of technology, the pace and service of the restaurant industries has also progressed. With the use of computers, the orders of the customer are directly networked to the kitchen. There are also touchscreen POS systems that are used for faster transaction input. The latest advancement for POS of restaurants is the use of smartphones for payment transactions. There are already POS platforms that are available in smartphones which enable the restaurants to process payments through credit card readers. Advancement in technology and awareness has really contributed to the development of POS systems in both restaurant and retail environments. From manual systems, large computers, to touch screens and smartphones, POS systems are more efficient both to store owners and to the...
Read MorePoint of Sale Software
How Point of Sale Software Works So have you finally bought that sought after system known to the retail and restaurant industries as point of sale software? If so, congratulations! No more manual inventories, no more lack of financial statement reports, no more inefficient costing and pricing tasks. You also don’t need to hunch your back every night just to understand your cashier’s handwriting! But before you relax and plug that system, there are a couple of things you must know. You must first understand how your software works, what its parts are and how your point of sale software is different from other POS software. Here is a quick overview on point of sale software focusing on the retail and restaurant industries. So What is POS Software About? POS software is a computerized pit stop for goods transaction, no more cash register. This efficient software is used in retail, food, beauty, sports & leisure, and hospitality industries alike. Companies in these industries typically choose to utilize this system because it can be used for inventories, printing detailed transactions history e.g. invoices and receipts, and can also handle payments in cash or credit/debit cards. This system is also designed to suit the needs of the merchant’s business. Retail vs. Restaurant Point of Sale Software Point of sale software is an advanced type of software that caters to different industries but the retail and restaurant industries are its most profitable ones. The biggest difference between the retail and restaurant POS software is the fact that retail POS is highly encompassing but is complex and a specialized type of system. What it means it that the retail POS program, design, and system sometimes cannot be altered. On the other hand, the restaurant POS software is an adaptable and straightforward system. The difference in function is also immense. Restaurant POS software is a times limited to inputting customer orders to be sent to the kitchen or the bar, print out order checks and receipts, and can only print out simple financial status reports. Typically a retail POS requires more functions such as advanced inventory and stocking protocols. Retail POS is also capable of doing price and cost analysis, analyzing different retail trends and producing reports (financial and sales). Of course it can also do the basic retail cashier functions such as recording the sales, exchanges, and returns. Both restaurant and retail POS systems are capable of processing multiple payments at one time and inputting promotional sales info such as house accounts, loyalty programs, and gift card transactions. How Payment Cards work within POS Software POS software utilizes UPC card data and codes that are encrypted, thus ensuring safety, and for the computer to process the information the POS system, it actually uses specialized computer software. In most cases this software is already included in the POS System kit so you need not worry about it. In order to use the system, the user will just swipe the card or input the information needed about the client, continue with some security checks, depending on system, and that’s it transaction finished. All information about the transaction will be recorded and saved. Its important to ensure that a POS and/or payment professional helps you set up this portion of the POS system to ensure PCI...
Read MorePoint of Sale Hardware – Basics
POS hardware can vary widely depending on the given application it can be as simple as an iPad and as complex as a fully integrated dedicated touch screen terminal with accompanying cash drawer and receipt printer. While it is important that the hardware is reliable, durable and up to date it pales in comparison to the importance of the software that runs the POS system. (For more information on POS Software be sure to read the article on Point of Sale Hardware.) Given that the hardware take a back seat, it is still important the quality components are used. Basic Components of a modern Electronic POS System: Touchscreen Display Barcode Scanners Scales and Pole Displays Receipt Printers Debit/Credit Card Reader Cash Drawer Computer / Monitor / Peripherals Cabling, Routers, Switches These are just basic components and the point of sale software is not limited to this. There may also be less than the list above, with a basic setup only consisting of only a touch screen terminal or tablet...
Read MoreHow to Choose the Right POS Software
It’s clear that Point of Sale software is essential to just about all businesses, large or little. Whatever your financial allowance is, it’s mandatory that you find a reliable POS software program that suits your requirements. In America popular software suites include Micros and Aloha however they can be expensive. More affordable solutions such as Harbortouch or Sage Light may not provide the robust features your business needs. Here are a few pointers to consider while searching for the correct POS software solution. 1. Equipment Compatibility The software program solution package should be compatible with the latest hardware available for sale including touch screen displays, terminals, thermal printers, charge card swipers, paperless personal pads, wireless bar code stock scanners and other standard peripherals. There are many convenient hardware add-ons that accelerate checkout and enhance the overall customer experience. It is important that the software you pick is compatible with a wide range of hardware and devices. 2. Easy User Interface The interface ought to be intuitive as well as user-friendly. It ought to be designed so that brand new users may pick this up and get accustomed to it quick without a lot hassle. Many POS systems and software programs have really counter-intuitive as well as complicated user-interfaces, which can cause problems and slow down customer service time. Easy user interface is especially essential for new employee training. Imagine needing to intensively teach every brand new staff member a complicated and cumbersome system. A simple user interface eliminates the manpower and time wasted on this step. 3. PCI Conformity Compliance with PCI (Payment Card Industry) standard implies that the software program can link seamlessly together with your selected merchant account securely. This means the added security necessary to secure the actual cardholders’ information and data. PCI compliance is also an essential security requirement that each business which processes credit and debit cards are forced to follow. 4. Compatibility With 3rd Party Plugins and Apps Whatever software program bundle you purchase should be suitable for other 3rd party plugins such as online ordering, social media and accounting software programs. It should be able to work effortlessly with software program like Quickbooks and other major developers. Depending on your business type online ordering or eCommerce may be a critical part of your business. Be sure the POS you buy integrates your brick and mortar operations with your online ones. Marketing and social media apps have become very popular in the recent decade. Integration with loyalty program where customers can interact with your business effortlessly is important from a community based marketing approach. On top of these basic concerns you need to ensure that the seller or reseller themselves is versed in the latest point of sale technologies and techniques. Avoid opting for non-local service providers who cannot correctly support the software once installed. Many sellers will offer the service on a purchase or rental basis. Basically you need to ask is the POS package offered as a Software-as-a-Service (SaaS) or will you need to pay the onetime charge? Can you lease the software through the provider? Do they have a trial period in which you can return the product should it not meet your needs? Ask the seller or reseller to supply testimonials associated with customers utilizing their restaurant or retail point of sale systems. Ensure a sufficient product demo or trial period to check if the POS will work with your given application. The couple of points provided above as well as your own company analysis should offer a sufficient insight and help you make a better POS...
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