5 Ways POS Systems Are Changing (and Why It Matters)

by Chris Venza | Mar 23, 2019

Point-of-sale (POS) systems are advancing, providing businesses with greater flexibility, control and intelligence than ever before. Businesses have moved from traditional cash registers and stationary credit card readers to iPads and even mobile- or cloud-based POS systems. This shift in technology will not only provide businesses with additional features, but also allow businesses to keep all reports and transactions in one place.

To illustrate, here are five ways POS systems are changing and how your business can jump on the cutting edge of POS technologies.

1. SHARED COMMERCE

By taking its operations online, a business has the potential to grow exponentially. Previously, businesses would first have to run data from their e-commerce platforms, then from their physical POS systems. For a comprehensive report, the business would then have to import both results into spreadsheet, accounting or other reporting software. But thanks to shared commerce POS systems, businesses can save plenty of time by automating the process.

One e-commerce solution is Shopify’s POS system. It syncs with the Shopify app for iOS and Android to track both online and offline transactions. Instead of managing two sets of inventories and payment systems, the Shopify POS synchronizes and streamlines your financial and product information in a centralized dashboard. This way, you have quick and easy access to real-time data and customer insights across two sales channels, without the hassle of running reports on multiple systems.

2. MOBILE POS

Customers are now using credit cards and mobile wallets more often than cash as payment. Finance Magnates’ statistics show that by 2025, 75 percent of all transactions will be made without cash. Businesses should consider allowing mobile payments, as customers are shifting away from cash.

With mobile POS systems, businesses can accept credit card payments from anywhere with an internet connection, while customers have more autonomy over how they pay. Depending on the system, businesses don’t need any heavy equipment overhauls or complicated staff training to start accepting mobile payments. Mobile credit card processing services (Square, PayPal Here, Flagship ROAMpay) simply require a credit card reader attached to a smartphone or tablet with the necessary mobile app, while mobile wallet providers (Google Wallet, Visa Checkout, Apple Pay) and loyalty mobile apps (Starbucks, Daily Deals) allow customers to pay directly from their smartphones or by using a POS scanner to read barcodes or QR codes on their screens.

3. POS + CRM

New POS systems integrate real-time transactions with CRM solutions to help businesses increase sales and boost revenue. Whereas previous POS systems could only provide basic data regarding customer behavior (if they provided anything), POS/CRM integration makes it possible to see which customers are making the biggest impact on sales and whose loyalty is worth pursuing.

Online CRM and invoicing software Sellsy is one such solution. For instance, its POS integration lets businesses create client records, CRM tasks and email marketing lists straight from their POS tills.

Another example is Revel Systems, an iPad POS solution with CRM capabilities. These features enable businesses to collect all types of customer data from POS transactions, such as names, billing and shipping addresses, emails, loyalty program membership details, and order histories. The software then helps businesses organize this information and synchronize and distribute it to different departments – sales, marketing, customer service and technical support – to improve customer experience and acquisition.

4. BIG DATA FOR SMBs

Big data isn’t just for big, fancy companies with extensive intelligence budgets. Small businesses now have affordable access to powerful data right at their fingertips – from their POS systems. One of the biggest trends to hit POS is the ability to extract valuable information from POS transactions to help business owners make smarter business decisions.

For instance, ShopKeep, a POS software tool for small businesses, offers robust data-gathering and reporting features that give you at-a-glance and complete overviews of how your business is doing. Detailed reports include inventory and volume analysis, top-selling items, revenue and profit margin optimization, and staffing needs.

POS data intelligence technology goes beyond retail. Toast is a POS system for restaurants that simplifies “restaurant operations by combining POS, front of house, back of house, and guest-facing technology on a single platform” while also allowing restaurant owners to “monitor restaurant sales, labor costs, food costs, and more in real time, at home, and on the go with powerful reporting capabilities.” Square offers a POS system for salons that has a built-in appointment scheduler and allows clients to pay at their chair and owners to manage accounts for each staff member.

5. IOT AND POS SECURITY

Much like any other internet-connected device, POS systems need more security as the technology advances. The internet of things (IoT) – the interconnectivity and communication of devices, networks and physical objects over the internet (think talking refrigerators and smart homes) – makes it possible to connect POS systems to front- and back-end processes like CRM, accounting and inventory management. As such, POS systems are more vulnerable than ever to hacks and data breaches. The infamous Target saga is the most notorious POS security breach to date. If hackers can infiltrate the POS system of one of the world’s largest retailers, small businesses are undoubtedly even more vulnerable.

The Department of Homeland Security’s United States Computer Emergency Readiness Team (US-CERT) released an alert in 2014 stating that cybercriminals had been attacking POS systems to collect consumer and credit card data by distributing malware through internet-connected devices. With POS breaches occurring since then, it’s important that businesses stay up to date on their security systems in place and how to combat any potential threats or attacks.

US-CERT recommends protecting POS systems by using strong passwords, ensuring you have the latest POS software updates, installing a firewall, using antivirus programs, restricting unauthorized internet access (such as for purposes other than POS transactions) and disabling remote access to POS systems. Furthermore, your POS system provider should have the proper security and compliance in place as part of your service-level agreement.

Preparing for a POS Down Crisis

by Chris Venza | Mar 13, 2019

Even the best POS systems go down. It is not a matter of if, but when. Preparation and practice for this type of event is key. The best thing a business can do is to get ahead of the situation to mitigate the damage and reduce the financial impact.

Rather than business coming to a halt, it is best for the management team to have a plan in place. Management and staff should be aware of the backup process in the event they are left without a POS system. Below are some ideas one may want to cover if they are ever affected by a system down situation.

TROUBLESHOOTING THE INTERNET

Before contacting the point of sale or merchant processing company, the first thing the business will want to determine if it is it a network or POS issue. Some things to consider while troubleshooting:

Determine if the issue is internet or POS/server related? More times than not, an internet outage can be the culprit of major POS problems. A simple way to check the internet would be to simply try to open a website on a computer using the same network as your POS system. If the site has trouble opening, some steps for troubleshooting would be:
1. Plug a laptop/computer directly into the modem provided by your Internet Service Provider (ISP).
  1. If internet issues still persist, try restarting the modem or contacting your ISP for resolution.
  2. If internet is available at the modem, try to access websites from a computer plugged into the router/switch provided by your POS provider or network specialist. A simple power cycle of the router/switch can correct a network issue, however it is highly recommended that this is done with the POS company on the phone.
If internet is available throughout the business, the next thing to determine if all terminals are affected or just one?
1. If one terminal is affected, it may be something as simple as a loose cable either at the POS switch/router or at the terminal itself.
2. If all terminals are affected and it is determined that it is not an internet issue, it would be best to involve the POS company at this point as it may be an issue involving the POS server or the router itself.

PUT A BACKUP PLAN IN PLACE

Not only should the business have a WRITTEN backup plan in place if it ever finds itself without a POS system, it also helps to make sure the entire staff is trained on how to handle a system-down situation. Some things to consider in your system-down procedures are:

Have a Handwritten System Documented and Put in Place

It is best to develop and have a handwritten ticket system documented before any major catastrophe hits. Management and employees should also periodically be trained on how to use this system.

For restaurants, this will include steps for a manual ticket process. The staff should know how to create a ticket at the table, turned it into the kitchen, and total the check amount to bill the customer. It would be a good idea to have an inventory of manual tickets in stock that are numbered so all payments/orders can be accounted for at the end of the shift.
For retail, it will help to record every sale with UPC/Skew number and cross reference these items on the credit card/cash slip provided to the customer.

Ask Your POS Company and Learn How to Use Offline Mode

Many POS systems support an offline mode for accepting credit cards while the internet or server is down. This allows the business to continue to run normally (including running credit cards through the system), however cards are only being stored in the system until the internet comes back online. The business does run the risk of accepting a card that declines at a later time, however the risk may outweigh the reward of not having to go to a manual process.

Alternative Sources for Accepting Credit Cards

Many merchant processing companies offer mobile payment/gateway solutions (For Example: MX Express) that will allow businesses to still authorize credit cards outside of the POS system. It would be a good idea to preemptively create all of the user accounts needed, log into each device, and record these usernames/passwords in a secure location. Businesses should also know which phone(s) will have the mobile payment app on them. Be sure to login and test the system periodically to make sure there are no surprises when the system is needed. Aside from the mobile payment piece, many merchant processors also provide a gateway (For Example: MX Merchant) that can be used online if mobile phones are not available.

Keep in mind that if payments are recorded in another application, such as authorizations on a mobile phone, they will need to be recorded in the POS system. It is best to have a payment method button on the POS system that will still close the table/check, record the order number, and track the payment type.

If a mobile payment or gateway option is not available from the merchant processor, the next best option is to have “knuckle busters” and payment slips available. Similar to offline mode, the merchant will run the risk of accepting a card that may be declined later.

Know Who to Call and for What

It is also a good idea to have a document available with important phone numbers for management to call in a system down situation. Resources to consider are:

The point-of-sale company
- Sales Rep Contact Info
- Support Phone Number
- Escalation (if available)
Credit Card Company
- Sales Rep Contact Info
- Support Phone Number
- Escalation (if available)
Networking company
- If available, company that installed the network system
Voice Authorizations phone numbers for VISA, Mastercard, Discover, and American Express

Look into Failover/Backup Internet

Many companies offer internet over 4G that can be installed near the router/modem. In the event of an internet outage, the system will automatically detect the internet is down and rollover to the back up 4G signal. This is ideal as it will have minimum disruption to the operation and the merchant can continue to authorize credit cards.

If a situation ever comes up where the merchant finds themself without a point-of-sale, preparation and training will be key. Make sure everyone knows who is responsible for what and that the process is clearly documented and available. While hoping or the best is good, it is always best to prepare for the worst.