POS terminals are the replacement for cash registers where a customer can directly pay using his credit or debit card. All a customer needs to do is insert his card into the terminal and enter the PIN to make payment. The introduction of the cashless mode of payment is now accepted widely across all major and minor business sectors.
The history of early POS systems dates back to 1970s when IBM first introduced them. This system had a dumb terminal connected to mainframe controller. All the processing was done by the mainframe controller while the terminal displayed information on the screen. Later, Gene Moshel, a restaurant owner in New York developed a software to run a POS system on an Apple system. And it was eventually in the early ‘90s when personal computers came into the picture for running software to automate retail stores.
How Does a POS Terminal Work?
A POS terminal will read the information from a customer's credit or debit card once inserted in it. This machine checks if the customer has sufficient balance to pay for the current transaction in his bank account. Once checked, this machine will transfer the exact amount a customer owes into the seller's account or into the account where transaction payments are stored. A POS terminal then prints a receipt of this transaction recording information about the same.
A POS terminal can store all the data about sales through using an all-in-one computer. These computers are safe to store the information as they are connected to a secure server. Most of the retail stores and restaurants use touchscreen terminals in their business. This proves handy and increases the speed of work.
Benefits of a POS Terminal
A POS terminal will not only make your business efficient but it will also provide you a complete record of the day to day transactions. Some more great advantages are listed below:
1) Analyze your Sales
The POS devices will let you analyze your sales and you can keep track of the number of items sold, or if the inventory needs to be refilled. A POS system also lets you download the results to your office computer once it is connected to a network.
2) Better Customer Experience
After the introduction of cashless transactions customers are more than happy as they don't prefer to carry cash when a card swipe can do the job. Installing a POS terminal will take your relations with the customers a long way as everyone prefers faster transactions these days.
3) Boosts your Business
Because a POS machine has the provision to store data it will enable you to keep track of information you require. For example, in a restaurant you can quickly answer a customer's query about the menu using your system.
A POS terminal is what your business needs to reduce the friction and increase your sales. A perfect POS system will ensure smooth flow of business sales. Choose a perfect system and march on the path of success.