Paying for goods has never been easier. The main reason we enjoy a smooth shopping experience these days is that advanced technologies work together, such as security protocols, mobile devices, and the internet. If you aren’t sure what this means, you need to know about Point of Sales, commonly known as POS, and what it can do for your business.
What is the Point of Sales Method?
Point of Sale, commonly referred to as POS, is an access point where a customer can pay electronically for a product or service. A typical example is a cash register with a debit card scanner. Yet modern technology allows for mobile POS payment processing systems such as card readers and transactions via an app. These types of POS are trendy in high-end department stores. They have also become convenient and popular in bars and restaurants because of the Covid-19 pandemic, where limited interaction is beneficial.
How POS Helps Your Business
POS forms a crucial part of the overall experience for both customers and businesses. Operational improvements such as quick scanning products, reduced waiting times, and faster payments satisfy customers’ needs. These benefits also allow your business to run more efficiently, especially if you use mobile POS systems during busy periods. For example, with mobile POS, it is possible to complete a transaction while a customer waits in line for self-service or a cash register.
How to Install a POS System
If you are technically-minded, installing a POS system yourself is straightforward. Yet, there are specific and complex tasks involved. If you are confident you can DIY a POS system, follow these steps after receiving your kit:
- Install POS software onto the server.
- Network POS workstations to the server.
- Connect the server to the internet.
- Connect scanners to POS workstations.
- Load inventory data onto the database.
- Test the system by scanning items.
Suppose you aren’t sure about how to configure a POS system. In that case, it is recommended you hire a professional POS installation service to do it for you.
POS Merchant Discount Rate
Don’t get excited about this misleading term. Merchant Discount Rate (MDR) is nothing more than a bank fee for the privilege of using a POS system. Each time a customer completes a transaction with a POS in your store, your provider charges an agreed limit. A bank might sometimes lower the MDR, but it is usually set at between 1% to 3% of the total of a transaction. You can offset the cost of MDR to the consumer with a minimum spend limit.
Merchant Category Codes
The Merchant Category Code (MCC) is a set four-digit number that identifies your business type. These codes are used to distinguish businesses from industries. They are assigned to your establishment during the application phase by credit card issuers. All eCommerce sites and physical stores that use a POS system are given an MCC based on various factors such as business groups, risk, and transaction patterns. They also track spending and issue credit points.
POS systems utilize rigorous security standards outlined in the Payment Card Industry Data Security Standard (PCI DSS) protocol. The protocol is designed to ensure that all merchants, such as yourself, accept, process, store, and transmit credit or debit card information via a secure system. As a result, compliance is observed by all merchants who process debit and credit cards from less than 20,000 transactions per year to over 6 million.