How to Choose the Right POS System: The Complete Guide
By Nico Ruggieri | March 07th, 2023 | Retail, POS System
No matter how much nostalgia we may feel for them, cash and checks are on their way out. As it stands, there are over 1 billion credit card transactions every day worldwide, and that number is only growing. Add in wireless payments, digital currencies, and everything in between and you’ll see why your business needs to make a change.
Fortunately, the right POS system can help your business adapt seamlessly to the times, regardless of your industry. Here’s how to choose the right POS system for your business needs!
Point-of-sale (POS) systems include both the hardware and software needed to accept payments from customers. This includes making sales, checking out, and processing their payments whether in-person or online.
In today’s business environment, you need a POS system just to survive. Not only are fewer consumers using cash, but accepting different payment methods is essential for scaling your business, offering online sales, and more.
However, every POS provider is different, and some will work better for different business needs.
Not all systems are created equally, as they all have different payment structures, pricing plans, and features. Here’s what to look for in your POS system.
One of the most important features of a POS system, whether online or in-person, is the ability to track inventory. This is an essential function for customer experience, as it can help prevent delays, refund issuings, and dissatisfaction. Also, it will make it much easier to manage your in-house inventory.
Look for a POS system that can help you streamline inventory, optimize your business sales, and simplify operations.
Arguably the most important question to ask on this list involves the payment options available to your customers. Consumers now use credit cards, wireless payments, and alternative payment methods more than ever.
Generally speaking, the more options you can offer, the better. This might include:
The list goes on. Regardless of the type you choose, having options at your disposal will help you attract the most customers and prevent you from losing sales.
Also, if your business offers online sales, then you’ll need to accept payments online. For that, you’ll need an eCommerce merchant processing service.
Some POS systems offer other features that can benefit your business or customers. On your end, these may include financial reporting, analytics, and other helpful accounting tools. Some POS systems offer cloud-based backup, which 20 percent of retail businesses now use.
For your customers, these may include offering different types of payment methods, exceptional security features, chargeback services, and more. If you’re looking for any specific features, make sure you verify that your POS system offers them.
Most POS systems charge transaction fees between 1.3 and 3.5 percent, often with an additional $0.05 to $0.10. Of course, this can add up for small businesses which primarily rely on their POS system for sales. If you’re worried about these fees, you have a few options before passing the expenses along to the customer.
Still, remember that accepting more payment methods will help drive new sales. If you currently do most of your dealings in cash, then these fees will almost certainly pay for themselves.
If you want to scale your business, attract new customers, or simply improve your business operations, the right POS system can help you achieve your goals. Simply ask yourself the questions above and choose the POS system that’s right for your needs.
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