More than ever, it’s imperative to have the right point of sale (POS) system for your store, restaurant or pop-up to keep your checkout line moving and ensure your customer’s transaction is fast and secure. .
Your POS system should also allow your customers to pay wherever they are and how they want. Read on to learn what a POS system is and how to choose the right one.
table of contents:
What is a point of sale (POS) system?
Generally speaking, POS means a place where customers pay in exchange for goods or services. A payment device connected to a POS system is required to complete a transaction at a physical retail store or on the go at an event, pop-up, or farmer’s market.
POS systems typically include the hardware needed to scan product barcodes, QR codes, and manually enter product prices. It also comes with software to calculate taxes and process payments securely.
For example, GoDaddy’s POS system helps small business owners consolidate sales across multiple points of sale, including in-store, in-person, and online, with an easy, fast, and encrypted payment experience. .
Seamless integration with your GoDaddy online store makes it easy to organize and access your online and in-store sales data in one place via your dashboard.
Save time and money spent interacting with customers who can buy online, pick up in store, book online and pay in person using a POS system.
How does your POS system work?
A POS system is an intermediary between a credit or debit card merchant and a financial institution. As such, payments from sales are processed through his POS and must first be verified with the customer’s bank (for debit cards) or credit card merchants before completing the transaction. Once the payment is approved, the POS system works with the bank to get the money into your account as quickly as possible.
For more information, see our quick reference guide to ecommerce payment processing.
What are the features of a typical POS system?
All the POS systems you need to start selling quickly, easily, and securely across all sales channels are here.
POS system hardware overview
Ideally, your POS device is ready to go right out of the box and has everything built in for a convenient in-person checkout process. They often have warranties and refund policies to make sure you are completely satisfied with the product.
Some of the great features of POS system hardware include:
- Processing all major credit and debit cards
- Dual screens — one screen for you and one for your customers
- paper receipt printer
- Barcode scanner to quickly scan product UPC and QR codes
- End-to-end encryption with stringent payment card industry (PCI) security compliance
- Quick and easy setup
- Light enough to move around the store
- Payment as soon as next business day
Our POS systems can also use card readers with docking stations for contactless payments.
POS card reader features:
- Processing with all major credit and debit cards
- Designed for freedom of movement
- All-day battery life with charging docking station
- Customers can tap, dip and swipe from anywhere to process payments
- Contactless payment processing with Apple Pay and Google Pay
- You can put it on the tabletop and do other things hands-free
POS system software overview
Some good POS systems allow you to configure new hardware online before your package arrives. For example, you can pre-populate your product list, upload your company logo, customize printable receipts, and more.
This means that as soon as you take your device out of the box and connect it to Wi-Fi, it’s ready to accept transactions.
Instead of using software that can only be installed locally on your device and doesn’t integrate with your other payment data, look for a scalable and versatile POS system so you can manage and track all of your online or in-store sales. is important. .
Some of the better POS systems come with dashboards that allow you to quickly track inventory and view metrics on how your small business is performing. Map sales and orders using visual charts.
The dashboard also allows you to compare sales performance across all locations where your business sells. Access in-person sales and online ordering from Amazon to Google Shopping, Instagram, Facebook, and more.
POS payment processing overview
The POS system must process all major credit and debit card transactions and provide additional methods for customers to pay via mobile phone digital wallets.
For example, GoDaddy Payments and POS systems support all major payment formats including Visa, Mastercard, American Express and Discover across all devices and solutions for online, in-store and in-person payments. Also accepts our dual screen GoDaddy smart terminals Contactless payment via customer phone With Apple Pay and Google Pay.
Many shoppers have adopted and will continue to use this payment method during the global pandemic. You can make all your cards and contactless payments with card readers and docking stations like the reader.
Your card reader or point-of-sale terminal should have a battery that lasts all day, allowing your customers to tap, dip, and swipe to process payments wherever you sell.
To process payments through GoDaddy card readers and manage your online orders from anywhere, you can download our apps for IOS or Android. Then connect your preferred card reader to accept credit and debit cards and record cash payments over the phone.
do I Need a POS system?
Not all small businesses need to invest in a POS system to start processing customer credit card transactions.
Advantages and disadvantages of using a POS system
Here are some pros and cons to help you decide whether to invest in a POS system at this time.
Pros of POS system:
- A POS system helps you track and manage your inventory
- Process all types of payments quickly and securely from one device
- Customers can pay how they want, where they want
- Versatile so you can scale your system as your business grows
- Many POS systems work with Avalara, a tool that saves time and money by calculating sales tax.
- POS systems let you create and scan QR codes to add coupon codes and loyalty rewards programs
- Many can be customized with branding on receipts and payment confirmation emails
- Some systems integrate with online sales to seamlessly track sales data wherever you sell
- Many POS systems come with a free trial
Cons of POS system:
- Some POS system providers have hidden fees or long-term contracts
- Some POS systems are hardware dependent
- You often have to sell while you have customers
- Some POS systems are less reliable than others and difficult to set up to start selling immediately
- Your POS system may not fit your current business model or customer needs
- The quality of customer service depends on the POS system
How much does a POS system cost?
Let’s see how much money you need to invest in a good POS system.
according to Merchant Maverick.com, POS system costs range from $0 to $1,700 for POS hardware and $0 to $300 per month for software (per terminal). Some companies offer free POS software, while others include free POS hardware.
These costs depend on:
- number of registers What you need: If you buy in bulk, adding a register may give you a discount
- stock size: Managing a large number of SKUs can be costly
- number of employees: Some POS systems charge per employee in the system
- Industry specificity: For example, using some restaurant POS systems can cost more because the kitchen cash register must be integrated with a handheld restaurant POS device.
- Add-on function: Adding gift cards or loyalty programs to your POS system may incur an additional monthly fee.
GoDaddy charges $249 for Smart Terminal and has GoDaddy Payments software built into the cost. We also offer a 1-year warranty, 30-day money-back guarantee, and free 2-day shipping so you can get started right away.
The GoDaddy card reader is $49 and comes with a charging dock and free 2-day shipping. It also integrates for free with the GoDaddy Payments app, available for download for iOS and Android.
In addition to hardware and software costs, you should also consider the fees you will have to pay for each face-to-face transaction.of The Motley Fool reports that the average payment processing fee for credit card payments is 2.9% + $0.30 for platforms like Square and Stripe and 3.49% + $0.49 for PayPal.
GoDaddy Payments has the lowest fees per in-person transaction in the industry (2.3% + $0.30). No long-term contracts, no monthly minimum fees, and no unexpected charges.
Most GoDaddy customers can set up GoDaddy Payments in minutes and receive payments as soon as the next business day. If you have any questions, our customer service team is at your service 24/7.
Who Can Benefit from Using a POS System?
Small businesses with a large number of SKUs and businesses that sell through physical retail stores, pop-ups, or farmers markets are most likely to use POS systems with smart terminals or card readers.
Some examples are:
- Boutique manager selling unique and high value items
- Bodega owner who sells everything under the sun
- A bakery, coffee shop, or tea shop that may sell ready-made taxable food, as well as dry goods and kitchen utensils
- Restaurant and food truck owners who need a wireless solution
- Pop-up shops or events where retailers can promote and sell items on the go
Evaluate POS system options
If you’ve decided to invest in a POS system but don’t know where to start, let’s discuss some options.
Different types of retail POS systems
Research shows that many retailers choose between a traditional POS system and a cloud-based POS system.
Traditional POS system
Traditional POS machines and systems store sales data on local servers within closed internal networks. However, this scenario can leave you vulnerable to system crashes and technical issues, which can lead to prolonged checkout delays and angry customers. Your store may still be using these legacy systems.
cloud-based POS system
These new POS machines and systems can process credit and debit card transactions anywhere and store sales data in the cloud. In the event of a technical problem online, most cloud-based systems also work offline, preventing loss of sales and customers. The cloud-based system works with his mobile-optimized POS machines to process customer payments the way they want and wherever they interact.
Plus, you can view and analyze sales data in real-time from anywhere via cloud-based dashboards across all sales channels.
Cloud-based POS systems are often easy to use and affordable.
GoDaddy’s virtual terminals and card readers are just two of many cloud-based POS system options, with the lowest payment processing fees per face-to-face transaction among the industry’s leading providers. GoDaddy also offers 24/7 customer support to help troubleshoot any issues you may face. For more information on making this important purchase decision, watch the video below. How to choose the right POS system.
Find versatile and transparent POS solutions
Now that you know what a POS system is and how it works, take the time to carefully evaluate your options.
When you receive your hardware and find that it’s not integrated with your online system, you don’t want to be surprised. Or that transaction fees are higher than expected.
Find a scalable, integrated POS software solution that lets your customers sell wherever they are and pay them how they want.
Read below for more information about GoDaddy Payments and credit card processing. Credit card payment methods in stores and online.
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