What’s a point-of-sale system (POS) & how does it work?


Now, greater than ever, it’s important to make use of the proper point-of-sale (POS) system to your retailer, restaurant, or pop-up to maintain your checkout traces transferring and to make sure your clients’ transactions are quick and safe.

Your POS system should additionally allow them to pay the best way they need, wherever they’re. Learn on to study what’s a POS system and the best way to choose the proper one.

Desk of contents:

What’s a point-of-sale (POS) system?

Typically talking, a POS means a location the place clients pay you in alternate to your items and providers. To finish the transaction in a bodily retail location or on the go at an occasion, pop-up, or farmer’s market, you’ll want a fee machine that’s hooked as much as a POS system.

Level-of-sale techniques sometimes embody the {hardware} wanted to scan a product bar code, QR code, or manually enter the product worth. In addition they include the software program to calculate taxes and securely course of the fee.

GoDaddy’s POS system, for instance, options a simple, quick and encrypted fee expertise that helps small enterprise house owners unify their promoting throughout a number of factors of sale — in-store, in-person, and on-line.

It seamlessly integrates along with your GoDaddy On-line Retailer, so you’ll be able to simply manage and entry your on-line and in-store gross sales information in a single place through a dashboard.

That’ll prevent money and time that might be higher spent coping with your clients — who can even purchase on-line and choose up in-store or e book on-line and pay in-person utilizing our POS system.

How does a POS system work?

Your point-of-sale system is the center man between the credit score or debit card service provider and your monetary establishment. In order a fee from a sale is processed via your POS, it should first be verified along with your buyer’s financial institution (for debit playing cards) or with their bank card service provider earlier than the transaction will be accomplished. As soon as the fee is authorised, the POS system will then work along with your financial institution to ensure that cash is deposited into your account as quickly as attainable.

Learn our fast reference information to ecommerce fee processing for extra particulars.

What are some widespread POS system options?

Right here’s every part you’ll want from a POS system to begin promoting shortly, simply, and securely throughout your whole gross sales channels.

POS techniques {hardware} overview

Ideally, a POS machine comes prepared out of the field with every part built-in for a handy in-person checkout course of.You’ll usually discover it has a guaranty and refund coverage to make sure you’re utterly happy along with your product.

A number of the higher options of POS system {hardware} embody:

  • Processing of all main credit score and debit playing cards
  • Twin screens — a devoted display for you and one to your clients
  • A paper receipt printer
  • A barcode scanner to shortly scan product UPCs and QR codes
  • Finish-to-end encryption with strict fee playing cards trade (PCI) safety compliance
  • Quick and simple setup
  • Light-weight sufficient for in-store mobility
  • Payouts as quick as the following enterprise day

With our POS system, you can too choose to make use of our Card Reader with docking station for contactless funds.

POS card reader options:

  • Processing with all main credit score and debit playing cards
  • A design for simple mobility
  • All-day battery life that comes with a charging docking station
  • Clients can faucet, dip and swipe to course of funds from wherever
  • Contactless fee processing with Apple Pay and Google Pay
  • Can set it on a tabletop to go hands-free and care for different issues

POS system software program overview

A number of the higher POS techniques allow you to configure your new {hardware} on-line earlier than your cargo arrives. For instance, you’ll be able to add your product listings upfront, add firm logos, and customise printable receipts.

This implies your machine is then prepared to simply accept transactions as quickly because it’s out of the field and related to your Wi-Fi.

It’s essential to search for a POS system that’s scalable and versatile, so you’ll be able to handle and observe each sale you make on-line or in-store, moderately than utilizing software program that may solely be put in domestically in your machine and doesn’t combine with different fee information.

A number of the higher POS techniques include a dashboard that retains you organized and allows you to shortly observe your stock and think about metrics on how your small enterprise is performing — with the assistance of visible graphs to map your gross sales and orders.

The dashboard can even allow you to evaluate the efficiency of gross sales throughout all of the locations what you are promoting sells — providing you with entry to in-person gross sales and on-line orders from Amazon to Google Purchasing, Instagram, Fb and extra.

POS fee processing overview

Your POS system ought to course of all main credit score and debit card transactions and supply further methods for purchasers to pay through a digital pockets on their telephones.

For instance, GoDaddy Funds and point-of-sale system settle for all main types of fee, together with Visa, Mastercard, American Specific, and Uncover, throughout all of our gadgets and options — for on-line, in-store, and in-person funds. Our twin display GoDaddy Sensible Terminal additionally accepts contactless funds through a buyer’s telephone with Apple Pay and Google Pay.

Many consumers adopted this fee technique throughout the international pandemic and plan to proceed utilizing it sooner or later. In the event you promote on the go at an area farmer’s market, pop-up, or occasion, you should utilize a card reader like GoDaddy’s transportable Card Reader with a docking station for your whole card and contactless funds.

Remember to get a card reader or POS terminal with a battery that lasts all day and allows your clients to faucet, dip and swipe to course of your funds wherever you promote.

To course of funds through the GoDaddy Card Reader, and handle your on-line orders from wherever, you’ll be able to obtain our app for IOS or Android. Then join your most popular card reader to simply accept credit score and debit playing cards, and document money funds in your telephone.

Do I want a POS system?

Not all small companies have to spend money on POS techniques to begin processing buyer bank card transactions.

Execs and cons of utilizing POS techniques

Listed below are some execs and cons that will help you determine whether or not or to not spend money on a POS system presently.

POS System Execs:

  • POS techniques assist with stock monitoring and administration
  • They course of all varieties of funds from one machine, shortly and securely
  • Lets your clients pay nonetheless they need, wherever they need
  • Versatile, so your system can scale as what you are promoting grows
  • Many POS techniques work with Avalara, which is a software that calculates your gross sales taxes for you, saving you money and time
  • POS techniques allow you to create and scan QR codes and add coupon codes or loyalty reward applications
  • Many will be custom-made along with your branding for receipts or e mail fee affirmation
  • Some techniques combine with on-line gross sales and allow you to seamlessly observe your gross sales information wherever you promote
  • Many POS techniques include free trials

POS System Cons:

  • Some POS techniques suppliers have hidden charges or long-term contracts
  • Some POS techniques are hardware-dependent
  • Many require you to promote whereas a buyer is current
  • Some POS techniques are much less dependable than others and more durable to set as much as begin promoting instantly
  • A POS system won’t suit your present enterprise mannequin or clientele wants
  • High quality of customer support varies between POS techniques

How a lot does a POS system value?

Let’s have a look at how a lot you’ll have to spend money on a superb POS system.

In accordance with MerchantMaverick.com, POS techniques can vary in value from $0 to $1,700 to your POS {hardware} and $0 to $300/month for the software program (per terminal). Some corporations supply free POS software program, and a few even embody free POS {hardware}.

These prices are depending on:

  • The variety of registers you’ll want: Further registers might come at a reduction if you happen to’re shopping for in excessive quantity
  • Your stock dimension: Managing a lot of SKUs will generally value extra
  • Worker numbers: Some POS techniques cost for every worker within the system
  • Business specificity: For instance, it might value extra to make use of some restaurant POS techniques, which have to combine a kitchen money register with hand-held restaurant POS gadgets
  • Add-on options: There could also be an extra month-to-month value for including reward playing cards or loyalty applications to your POS system

GoDaddy expenses $249 for the Sensible Terminal, and it comes with GoDaddy Funds software program constructed into the associated fee. We additionally supply a one-year guarantee and a 30-day refund, with free two-day delivery to get you up and operating shortly.

The GoDaddy Card Reader is $49 and comes with a charging dock and free two-day delivery. It additionally integrates with the GoDaddy Funds app without cost, which you’ll be able to obtain for iOS and Android.

On prime of the {hardware} and software program prices, you additionally have to issue within the charges you’ll have to pay per in-person transaction. The Motley Idiot experiences that the typical fee processing charges for bank card funds can vary from 2.9% + $0.30 for platforms like Sq. and Stripe, all the best way as much as 3.49% + $0.49 for PayPal.

GoDaddy Funds presents the bottom charges per in-person transaction (2.3% + $0.30) within the trade. There aren’t any long-term contracts or month-to-month minimums and no surprising charges, both.

Most GoDaddy clients can arrange GoDaddy Funds in minutes, and also you’ll receives a commission as early as the following enterprise day. And when you’ve got any questions, our customer support group is accessible 24/7 to assist.

Who can profit from utilizing a POS system?

Small companies with a lot of SKUs, in addition to companies that promote in a bodily retail location, pop-up, or farmer’s market, are the more than likely to make use of POS techniques with a Sensible Terminal or Card Reader.

Some examples embody:

  • Boutique managers who promote distinctive, high-valued objects
  • Bodega house owners who promote every part beneath the solar
  • Bakeries, espresso outlets, or tea outlets which may promote premade taxed meals objects, together with dry items or kitchenware
  • Restaurant or meals truck house owners who want wi-fi options
  • Pop up outlets or occasions the place retailers can promote and promote objects on the go

Evaluating your POS system choices

In the event you’ve determined to spend money on a POS system, however don’t know the place to begin, let’s talk about some choices.

Several types of retail POS techniques

As you do your analysis, you’ll uncover that many retailers will select between a legacy POS system and a cloud-based POS system.

Legacy POS Methods

Conventional POS machines and techniques retailer your gross sales information on native servers in a closed inner community. Nevertheless, this situation could make you susceptible to system crashes and technical points — resulting in lengthy checkout delays and offended clients. Many grocery shops and big-box shops may nonetheless be utilizing these legacy techniques.

Cloud-based POS techniques

These newer POS machines and techniques can course of credit score and debit card transactions wherever and retailer your gross sales information within the cloud. If there may be an internet technical downside, most cloud-based techniques additionally work offline to avoid wasting you from misplaced gross sales and clients. Cloud-based techniques work with mobile-optimized POS machines to course of buyer funds nonetheless they need and wherever you work together with them.

Moreover, you’ll be able to view and analyze your gross sales information from wherever in real-time through a cloud-based dashboard throughout your whole gross sales channels.

Cloud-based POS techniques are additionally usually simpler to make use of and extra inexpensive.

GoDaddy’s Digital Terminal and Card Reader are simply two of many cloud-based POS system choices, with the bottom fee processing charges per in-person transaction amongst main suppliers within the trade. GoDaddy additionally presents 24/7 buyer assist that will help you troubleshoot any points you might face. For extra assist in making this essential buy determination, watch: How to decide on the proper POS system.

Discovering a flexible and clear POS answer

Now that you recognize what’s a POS system, and the way it works, take the time to rigorously consider your choices.

You don’t need any surprises once you obtain the {hardware} and discover out that it doesn’t combine along with your on-line system. Or that the transaction charges are steeper than you anticipated.

Search for a scalable and built-in POS software program answer that allows you to promote wherever your clients are and allows your clients to pay the best way they need.

To study extra about GoDaddy Funds and bank card processing, learn: How you can settle for bank card funds in-store and on-line.

Picture by: sofiacarhair.com


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