What is a point of sale (POS) system? (2023)

Products mentioned

Go Daddy PDV,GoDaddy Payments

Nobody wants to wait in line. So it's probably not a surprise that "retailers are losing $37.7 billion in potential sales due to long checkout lines”, according to a recent report from Ayden.

That figure includes giving up “$15.8 billion in potential sales to its competitors, and the industry itself lost $21.9 billion after customers opted out of a long wait” by abandoning their purchases altogether.

Now more than ever, using the right point-of-sale (POS) system for your store, restaurant, or pop-up is essential to keeping your checkout lines moving and ensuring your customers' transactions are fast and secure.

Your POS system should also allow them to pay how they want, wherever they are. Read on to find out what a POS system is and how to select the right one.

Index:

  • What does point of sale mean?
  • What forms of payment does a POS accept?
  • What are some common POS features?
  • How can I use customer data?
  • Do I need a POS?
  • What are other ways to process payments without a POS?
  • How do I evaluate my POS options?
  • How much does a POS cost?

What does point of sale (POS) mean?

Generally speaking, a POS means a place where customers pay in exchange for your products and services. To complete the transaction in a physical retail store or on the go at an event, pop-up, or farmers market, you'll need a payment device connected to a POS system.

POS System Definition

Point of sale systems often include the hardware needed to scan a product's barcode, QR code, or manually enter the product's price. They also come with software to calculate taxes and process payment securely.

GoDaddy POS System, for example, features an easy, fast, and encrypted checkout experience that helps small business owners unify their sales across multiple outlets—in-store, in-person, and online.

Integrates seamlessly with your GoDaddyOnline store, so you can easily organize and access your online and in-store sales data in one place through one dashboard.

This will save time and money that could be better spent dealing with your customers, who can shop online and pick up in store or book online and pay in person using our POS system.

How does the POS system connect with my payment provider?

Your point-of-sale system is the intermediary between the credit or debit card merchant and your financial institution. Therefore, since payment for a sale is processed through your POS, it must first be verified with the customer's bank (for debit cards) or credit card merchant before the transaction can be completed. Once the payment is approved, the POS system will work with your bank to ensure that the money is deposited into your account as quickly as possible.

read ourquick reference guide to ecommerce payment processingfor more details.

What forms of payment does a POS accept?

Your POS system should process all major credit and debit card transactions and provide additional ways for customers to pay through a digital wallet on their phone.

For example, GoDaddy Payments and the point-of-sale system accepts all major forms of payment, including Visa, Mastercard, American Express, and Discover, across all of our devices and solutions, for online, in-store, and in-person payments. our double screenTerminal Inteligente GoDaddyalso acceptcontactless payments through a customer's phonecon Apple Pay y Google Pay.

Many shoppers have embraced this payment method during the global pandemic and plan to continue using it in the future. If you're selling on the go at a local farmer's market, pop-up, or event, you can use a card reader like GoDaddy's portable.Card reader with docking stationfor all your card and contactless payments.

Make sure you get a card reader or POS terminal with all-day battery life that lets your customers tap, dip and swipe to process their payments wherever you vend.

To process payments through the GoDaddy card reader and manage your online orders from anywhere, you can download our app for IOS or Android. Then connect your preferred card reader to accept credit and debit cards and register cash payments on your phone.

What are some common POS system features?

Here you will find everything you need from a POS system to start selling quickly, easily and securely in all your sales channels.

POS Systems Hardware Overview

GoDaddy is elegant and powerfulSmart terminal (the POS device)It comes ready to use with everything integrated for a convenient personal payment process. You have a one-year limited warranty and a 30-day money-back guarantee to ensure that you are completely satisfied with your product.

What is a point of sale (POS) system? (1)

GoDaddy Smart Terminal POS system hardware includes:

  • GoDaddy payment processing for all major credit and debit cards
  • Dual screens: a dedicated screen for you and one for your customers
  • A paper receipt printer
  • A barcode scanner to quickly scan UPC and product QR codes
  • End-to-end encryption with strict Payment Card Industry (PCI) security compliance
  • Quick and easy setup
  • Light enough for in-store mobility
  • Lowest payment processing fees in the industry, with no contracts or hidden fees
  • Payments the next business day

GoDaddy Pay receipts are customizable and allow your customers to choose to receive receipts by email or text message (instead of printing them).

You can also choose to use ourCard reader with docking stationfor contactless payments.

What is a point of sale (POS) system? (2)

GoDaddy Card Reader Features:

  • GoDaddy payment processing with major credit and debit cards
  • A pocket design for easy mobility.
  • A full day's battery life that comes with a charging pad
  • Customers can tap, dip and swipe to process payments from anywhere
  • Contactless payment processing with Apple Pay and Google Pay
  • You can place it on a table to have your hands free and take care of other things.

POS system software overview

Both of GoDaddy's POS hardware solutions mentioned above integrate seamlessly with our GoDaddy payment processing software.

You can also set up your new Smart Terminal online before your shipment arrives. For example, you can add your product listings in advance, upload company logos, and customize printable receipts.

Your device will be ready to accept transactions as soon as you take it out of the box and connect it to your Wi-Fi.

GoDaddy's POS payment processing software integrates seamlessly with GoDaddy'sOnline storeto unify face-to-face and online sales using our new Commerce Hub. The benefit of a service like GoDaddy Payments is that it is scalable and versatile. So you can easily manage and track all the sales you make online or in-store, instead of using software that can only be installed locally on your device and doesn't integrate with other payment data.

It comes with a dashboard that keeps you organized and allows you to quickly track your inventory and view metrics about how your small business is performing, with the help of visual charts to map your sales and orders.

The dashboard also lets you compare sales performance everywhere your business sells, giving you access to in-person sales and online ordering from Amazon to Google Shopping, Instagram, Facebook, and more.

How can I use customer data generated from a POS system?

Once you start collecting sales data with your embedded POS system, you can analyze it to optimize various business functions.

Here are some common ones to consider:

  1. Monitor your stocks and stock levels:So you know when to restock and which items are selling better than others.
  2. Profiling customer segments for future marketing opportunities:You can segment them into lists for future email marketing or targeted ads.
  3. Evaluate the performance of individual sales representatives:To keep track of commissions and future performance reviews and promotions.
  4. Compare sales data across all your platforms(for example, online, in-store, social media, and email) to find trends in the most popular items or product categories sold in a specific time period. Or to inform you of upcoming product releases and seasonal sales promotions.
  5. Track how customers interact with your small business:To find out what times of the week they are most likely to buy, identify trends in consumer spending habits (eg, average order values ​​and products they tend to buy together) and repeat purchase frequency of its main clients.

Keeping track of all this data helpsimprove the overall customer shopping experience🇧🇷 You can also give your best customers more of what they want through exclusive sales of their favorite items orinvite them to join a loyalty programfor future discounts and rewards.

For additional information and ideas, read “8 Ways to Use Your Point of Sale Data to Remarket to Customers.”

To doUEDo you need a POS system?

Not all small businesses need to invest in POS systems to begin processing customer credit card transactions.

Pros and cons of using POS systems

Here are some pros and cons to help you decide whether or not to invest in a POS system right now.

Advantages of the POS system:

  • POS systems help with inventory tracking and management
  • Process all types of payments from a single device, quickly and securely
  • Let your customers pay how they want, where they want
  • Versatile, so your system can scale as your business grows
  • Many POS systems work withendorse, which is a tool that calculates your sales tax for you, saving you time and money
  • POS systems allow you to create and scan QR codes and add coupon codes or loyalty rewards programs
  • Many can be personalized with your brand for email receipts or payment confirmation
  • Some systems integrate with online sales and allow you to continuously track your sales data wherever you sell.
  • Many POS systems come with free trials.

POS System Cons:

  • Some POS system providers have hidden fees or long-term contracts
  • Some POS systems are hardware dependent
  • Many require you to sell while a customer is present.
  • Some POS systems are less reliable than others and more difficult to set up to start selling right away.
  • A POS system may not fit your current business model or customer needs
  • Quality of customer service varies between POS systems

Who can benefit from using a POS system?

Small businesses with a large number of SKUs, as well as businesses that sell through a brick-and-mortar retail store, pop-up, or farmers market, are most likely to use POS systems with a smart terminal or card reader. .

Some examples include:

  • Boutique managers selling unique and high-value items
  • Bodegueros selling everything under the sun
  • Bakeries, cafes, or tea houses that may sell taxed pre-made foods along with dry goods or kitchen utensils.
  • Restaurant or food truck owners who need wireless solutions
  • Pop-up shops or events where retailers can promote and sell items on the go

Other ways to process payments without a POS system

If you are unsure about investing in a POS system, you might also consider using a Virtual Terminal or Pay Link solution.

What is a Virtual Terminal?

You don't need to buy any additional hardware to use it.Terminal virtual de GoDaddy🇧🇷 It's a safe way to get paid when your customers aren't in front of you.

What is a point of sale (POS) system? (3)

Virtual Terminal allows you to transform your smartphone, tablet or computer into a credit card terminal, without the need for a card reader. With your mobile device and Internet connection, simply sign in to your GoDaddy account and open the Virtual Terminal at the checkout panel.

Then enter your customer's credit card information (obtained by phone, text, or email) and confirm the charge. Payment is processed quickly and securely, and you will receive your funds the next business day. Many small businesses that offer food delivery or book appointments by phone in advance like this payment option.

What are payment links?

In cases where your customers prefer to enter their own credit card information, you can also create aOnline payment link through your GoDaddy account🇧🇷 Then share it with them through your preferred communication channel: via text, social media, email, or even in person.

Also, you can turn an online payment link into ascannable QR codewith a click Then post or print anywhere so customers can quickly scan and pay the way they want.

What is a point of sale (POS) system? (4)

Payments with a GoDaddy payment link are processed quickly and securely, just like in the Virtual Terminal, and funds arrive in your account the next business day.

None of these solutions require you to have an eCommerce website.

However, if you are interested in digital payment options for your website, please watch the video below.

Evaluating Your POS System Options

If you've decided to invest in a POS system but don't know where to start, let's look at some options.

Different Types of Retail POS Systems

As you do your research, you will find that many retailers will choose between a legacy POS system and a cloud-based POS system.

legacy POS systems

Traditional POS systems and machines store your sales data on local servers in a closed internal network. However, this scenario can make you vulnerable to system crashes and technical problems, leading to long payment delays and angry customers. Many supermarkets and big box stores may continue to use these legacy systems.

Cloud-based POS systems

These latest POS machines and systems can process credit and debit card transactions anywhere and store your sales data in the cloud. If there is a technical problem online, most cloud-based systems will work offline as well to prevent you from losing sales and customers. Cloud-based systems work with mobile-optimized POS machines to process customer payments however they want and wherever you interact with them.

Plus, you can view and analyze your sales data from anywhere in real time through a cloud-based dashboard across all your sales channels.

Cloud-based POS systems are also often easier to use and more affordable.

GoDaddy Virtual Terminal and Card Readerare just two of many cloud-based POS system options with the lowest payment processing fees per personal transaction among the industry's leading providers. GoDaddy also offers 24/7 customer support to help you resolve any issues you may experience. For more help making this important buying decision, check out:How to choose the right POS system.

How much does a POS system cost?

Finally, let's see how much you will need to invest in a good POS system.

In accordance withComercianteMaverick.com, POS systems costs can range from $0 to $1,700 for your POS hardware and $0 to $300 per month for software (per terminal). Some companies offer free POS software and some even include free POS hardware.

These costs depend on:

  • the number of recordsyou will need: extra trunks may be discounted if you buy in bulk
  • Your inventory size: Managing a large number of SKUs sometimes costs more
  • Employee numbers:Some POS systems charge for each employee in the system
  • Industry Specificity:For example, it may cost more to use some restaurant POS systems, which need to integrate a kitchen cash register with portable restaurant POS devices.
  • additional resources: There may be an additional monthly cost to add gift cards or loyalty programs to your POS system

GoDaddy charges $249 forsmart terminaland comes with GoDaddy Payments software built right into the cost. We also offer a one-year, 30-day money-back guarantee, with free two-day shipping to get you up and running quickly.

oh god dadcard readerit costs $49 and comes with a charging dock and free two-day shipping. It also integrates with the free GoDaddy Payments app, which you can download for iOS and Android.

In addition to hardware and software costs, you also need to consider the fees you'll need to pay per personal transaction. EITHERThe Motley Fool reports that average payment processing fees for credit card payments can range from 2.9% + $0.30 for platforms like Square and Stripe, to 3.49% + $0.49 for PayPal.

GoDaddy Payments offers the lowest personal transaction fees (2.3% + $0.30) in the industry. There are no long-term contracts, no monthly minimums, and no unexpected fees either.

Most GoDaddy customers can set up GoDaddy Payments in minutes, and you'll get paid the next business day. And if you have any questions, our customer support team is available 24/7 to help.

Finding a versatile and transparent POS solution

Now that you know what a POS system is and how it works, take the time to carefully evaluate your options.

You don't want surprises when you receive hardware and find that it doesn't integrate with your online system. Or that the transaction fees are higher than you expected.

Look for a scalable, integrated POS software solution that lets you sell wherever your customers are and pay how they want.

For more information on GoDaddy payments and credit card processing, please read:How to accept credit card payments in store and online.

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