New technology is changing the point of sale (POS) experience for both buyers and sellers – for the better. These systems are much more advanced than past iterations and offer many more benefits than the traditional cash register.
POS credit card processing is also easier to use than it’s ever been. But business owners must familiarize themselves with advances in this technology to ensure they make the best use of it.
To that end, we present this brief introduction to POS credit card terminal processing.
What You Need to Know About Credit Card Terminals
Discover the basics of POS credit card terminals for your business.
The necessary components of a POS credit card terminal payment system
Those new to POS credit card terminals should know that there are several systems and parties involved to ensure hassle-free processing. These include:
- Cardholders – Credit cardholders, a.k.a. the customers, who want to buy your products or services
- Merchant – The owners of the retail business where the transaction is being made
- Merchant Bank – The bank where your business’s checking account is; where the funds received from the transaction will be sent
- Issuing Bank – Also commonly referred to as the credit card company; the bank that issues the patron’s card
- Card Networks or Associates – Credit card-issuing banks such as Mastercard or Visa that are responsible for approving transactions and setting transaction fees
- POS System or Terminal – The software and hardware that allow contactless payments and accept credit cards
- Payment Processor – A company that typically processes the transaction for your business. This third-party organization or merchant bank transmits and analyzes information related to the transaction taking place between the issuing bank and your business.
These elements need to come together and work with one another to ensure your retail store can accept payments made via credit cards. The transactions start when your customer makes a payment for your products or services and is completed once the payment has been authorized. Funds accumulated from completed transactions are transferred to the bank with your business checking account and may be calculated as sales or profits at the end of the business year.
Updates in credit card processing equipment
If you own a physical store, it’s in your best interest to invest in suitable equipment that accepts credit cards at the point of sale. These payment terminals are the longest-standing and most common form used to accept payments at retail stores. Plus, they are easy to use by both customers and store staff and are evolving to become smarter.
Earlier credit card terminals supported secure transactions with the help of EMV technology. However, these days, many POS credit card terminals also offer near-field communications (NFC) technology which allows contactless payments. Many also support mobile wallets like Apple Pay among others, offering a simpler way to accept payments.
You may also opt for a standalone terminal like the PAX A920 Terminal to accept payments made via credit cards. However, for more value-added solutions such as loyalty programs, payroll management among others, it’s best to opt for a fully integrated POS system.
Why Choose a Credit Card Terminal?
With the help of a POS credit card terminal, your business can accept a new payment type that will help broaden your customer base and drive revenue. Here are some more ways the system can benefit your business.
1. Enhanced Cash Flow
When your customers pay for your products and services via credit card, the entire process is settled more quickly than with other forms of payments, like cash. There is no need to visit the bank to deposit the money as everything is completed electronically. Furthermore, you don’t have to wait for cash payments, all of which can enhance your business’s cash flow.
2. More Security
Many business people don’t like carrying around a lot of cash for security reasons. There are security issues when it comes to credit cards, too, but not as many as with cash. This is possible as businesses do everything in their power to protect their customers and themselves via comprehensive compliance regulations, ensuring credit card terminal payments remain safe. Moreover, there are different types of credit card payment protection available that benefit both businesses and customers.
3. Boosted Sales
By investing in a POS credit card terminal for your business, you will be able to accept a wide range of payments, including those made with credit cards, Apple Pay, Google Pay and many more. This will help create a positive impression that helps you retain customers. Hence, it can bring a form of flexibility to your online payment ecosystem that allows customers to make payments as and when they want.
A reliable POS credit card terminal is indispensable for businesses of all sizes, and when paired with advanced technology, can help your business grow. It helps open up more opportunities in different markets while making everyday transactions easier. Also, you don’t need to become an expert in payment security to integrate in-store credit card payments. Just get in touch with a reliable provider.