What is a POS System and Do You Need One?

There are a wide range of different businesses in the world from pizza shops to retail stores to legal offices and everything in between. While all of these businesses may be different in a lot of ways, one thing is consistent: each business provides goods and services in exchange for money.

Money changing hands is the most important aspect of any business. After all, a business that isn’t making money isn’t a business that will be operating for very long. Of course, anyone in business can explain that collecting money is often easier said than done.

That’s where a POS system comes into play. But first, what is a POS system? Why does your business need one? Can you get by without one? Let’s answer all of those questions and clear up some confusion about POS systems as well.

What is A POS System?

The “POS” portion of “POS system” stands for “point of sale.” A POS system is the terminal business owners use to collect payment from customers. Some people may refer to them as payment terminals, credit card readers, or any other number of informal terms.

POS systems can come in a wide range of shapes and sizes with a number of different capabilities. There are basic POS systems that simply allow customers to swipe their card or insert their chip card to make a payment. There are also large touch screen POS systems that give customers more options and may integrate part of the ordering process if your business needs that type of capability.

Some POS systems integrate with your businesses inventory list to help keep track of sales, outages, and availability. In addition, there are some POS systems that work with an existing laptop or tablet like an iPad which helps make the system more familiar to customers and potentially more portable for business owners.

Most importantly, all POS systems are designed to take money from your customer’s bank or credit card accounts and deliver those funds to you in a quick and seamless transaction. A good POS system is one that often goes unnoticed because it simply sits there and does its job without causing you or your customers and grief, stress, and frustration.

Do You Need a POS System?

Many business owners often wonder if a POS system is worth the cost of buying, installing, and training staff. After all, cash is a perfectly good way of doing business, right? The truth is that a business which does not accept debit or credit may be missing out on a large number of sales. People simply do not carry around cash like they used to.

In fact, depending on the type of business, as little as 8% of transactions are completed using cash today. That’s a stunning statistic and the trend is only going to continue into the future. Cash will soon be a thing of the past and many governments, banks, and other institutions are planning for a cashless society.

Aside from being able to accept a wider form of payment, there is also the question of convenience for your customers. By having a POS system you make it easier for customers to do business with you in the form they prefer. Imagine driving to a destination and there are two roads. One is a wide open freeway with plenty of lanes and the other is a road with construction going on at every corner. Obviously you will take the road that allows you to travel quickly and easily.

What Kind of POS System Do You Need?

Now that we have answered, “What is a POS system?” the next obvious question is what type of system do you need for your business? This question is a little more difficult to answer in one article because the needs of unique businesses can vary dramatically.

The first question to ask when looking for a POS system is how you interact with your clients. Are you fixed in one location or do you need the ability to receive mobile payments? Also, will clients be interacting with your POS system to place orders or is the system simply for taking payments? There are a few questions you should be considering before choosing a POS system. Still not sure if your business needs to take the plunge?

Talk to our POS system experts at AISInk for valuable advice and guidance when searching for the right POS solution. We can help you provide exception payment solution to your clients and grow your business.