In this case, the software is hosted on a cloud, and you access it through a computer browser. Also known as SaaS, or software-as-a-service, is automatically updated and maintained through the provider in almost all cases. On-site POS software was the norm for many years.
Today, however, it is more common to find a cloud-based POS system, or even, perhaps, a system that uses features of both local hosting and the internet.
On-site POS software can be expensive to set up, and in most cases, a professional must assist with this. Cloud-based systems, on the other hand, are usually more affordable, and they can be integrated with other programs. POS software applications can have a lot of variety in terms of what layout and features they might have. Every business has its own needs, and thus, these applications are created to accommodate this.
For example, a POS software system for a restaurant would have some type of table layout on it so that orders can be associated with specific tables. Again, since all businesses have different needs, you can find different hardware components, too.
There is always a main device, such as a cash register or computer monitor. There is also usually some type of cash drawer or receptacle where cash and receipts are kept. Speaking of receipts, there is also typically a receipt printer associated with a POS system. This prints receipts for customers, and it can also print out different reports. Many POS systems also have a barcode scanner. Card machines are also part of a POS system, and these, of course, are used to process payments via credit or debit cards.
These might require their own software, and typically, they must use Wi-Fi or other internet connections. If you are using a cloud-based system, you also need your network devices, such as modems and routers. One of the main things you can do with a POS system is data entry.
These systems are designed to make tasks like date entry as easy as possible. Both require a card reader of some sort — a standalone terminal for manual entry or integrated terminal for a linked-up system. Regardless of terminal type, it will have to connect to the internet via a phone line by cable, WiFi or through a built-in SIM card. A standalone card terminal is independent of the POS software or cash register where you register transactions through.
There is no communication between a standalone terminal and the rest of your POS system. The terminal will then connect with the card issuer, merchant bank and others to approve the transaction. Once approved, it will print a receipt if it has an inbuilt printer, or conform with a beep or message on its display that the payment was OK.
Related: How does a POS system work? The basics explained. The card machine will then usually light up and show the payment total automatically, prompting the customer to pay that or add a tip , if that setting is switched on. As with standalone terminals, the integrated machine processes the payment over the phone line or internet, printing a receipt if applicable.
The most complex checkout system is usually a supermarket till point, due the variety and volumes of products sold. The more specialised the products sold, the more specialised the point of sale can be.
Food and drink sectors like restaurants require a different set of features in the POS software than retailers. For one, it might need a way to send food orders to the kitchen in real time perhaps through a connected kitchen printer , tipping options and a booking system for taking table reservations.
Example of a restaurant counter with touchscreen POS software by Lightspeed, connected receipt printer, card machine and cash drawer. This allows restaurant chains to benefit from a cloud-hosted system where all sales data across the locations can be monitored in real time from any internet browser, while also relying on local hosting as a backup.
Alternatively, some cloud POS software offers an offline mode that keeps the POS functioning during no connectivity, then syncs all the new data with the backend when the local system is back online. Related : How to use a POS machine: step by step explained. The basics explained. How does a POS system work? POS is the setup you have in place for processing face-to-face payments from customers.
POS systems then and now Just a few decades ago, a point of sale system was, in its most basic form, a cash register. Requires you purchase one or more software licences. As all the software is based in your closed computer network, it does not require the internet. Cloud-based System is hosted online, i.
Hardware Businesses will have different needs when it comes to point of sale hardware. Cash drawer: Used to store the daily takings and cash float along with cheques, vouchers, receipts and slips relevant to accounting. Receipt printer: Used to print receipts for customers or end-of-day reports for cashing up. Barcode scanner: Typically used in retail environments with many different products. Card machine: Used to process payments made by debit or credit cards or mobile wallets via NFC.
Traditional card machines require software installation if not included and SIM card or landline cable, while app-based card readers use WiFi or network data from a connected mobile device.
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