Retail technology has evolved dramatically since cash registers first appeared. Today, a single point-of-sale (POS) terminal can handle everything from managing inventory to processing payments, all with a mobile device. Affordable mobile terminals enable businesses to keep up with payment trends like buy now, pay later and QR codes.
What exactly is a POS terminal? It’s a compact device equipped with software and a card reader that accepts cash, cards, and other digital transactions like gift cards. These terminals usually connect to cloud-based POS software that updates inventory and sales data in real-time.
Let’s take a step back for a moment. The first cash register, created by saloon owner James Ritty in 1879, aimed to eliminate transaction errors and assist with bookkeeping. National Cash Register (NCR) bought Ritty’s invention in 1884 and introduced features like electric motors and paper roll receipts. Interestingly, back in 1921, the U.S. government filed antitrust suits against NCR because they controlled 95% of the cash register market.
Fast forward to 1973, when IBM released the first computer-based POS system for restaurants. The introduction of magstripe technology by Visa and Mastercard in 1979 opened the door for credit card payments at the point of sale. Then in 1993, the era of EMV chips began, leading to more secure transactions. Pioneers like PayPal and Verifone took this further by creating mobile card readers. As technology developed, companies like Square brought forth POS terminals with enhanced security and payment options.
How do these modern POS terminals operate? At checkout, customers present their items, which the seller scans. The system then displays the product details and total cost. When it’s time to pay, the customer indicates their payment method—cash, card, or mobile. Behind the scenes, the system processes the payment request, checking with banks to confirm fund availability. If approved, the transaction completes, and a receipt is generated.
What features should you look for in a POS terminal? The hardware is vital. Basic requirements include a computer to run the software, a card reader for payments, and a printer for receipts. Consider additional features like a barcode scanner or a cash drawer if you deal with cash payments.
On the software side, the payment gateway determines how payment information is collected and encrypted. It connects to the payment processor, which handles the transfer of funds. Inventory management is crucial too; a good POS keeps your stock updated automatically.
Transaction reporting offers valuable insights, allowing you to categorize and analyze sales data. A loyalty program can enhance customer relationships by tailoring offers based on buying habits.
With all the options available today, finding the right POS terminal can be overwhelming. Here’s a quick look at some popular choices for different business types:
Square Terminal: A mobile solution designed for flexibility, the Square Terminal features built-in software and supports multiple payment methods. It’s compact, making it perfect for farmers markets or pop-up shops.
Clover Flex: This portable device is great for on-the-go transactions and includes a touchscreen and built-in scanner. It’s versatile enough for different payment processors.
Toast Go2: A stand-alone device ideal for restaurants, it’s built to withstand the hustle of a busy environment while providing powerful management tools.
PayPal Terminal: Similar to the Square option, it’s designed for ease of use at events like trade shows. It supports a range of payment methods, including international credit cards.
Helcim Smart Terminal: This terminal focuses on professional services, lacking barcode scanning but offering robust functionality with surcharging options.
When deciding on a POS terminal, think about your specific needs. Consider payment methods, fees, security features, and integration capabilities. Connectivity is important too—look for options that keep your operations running smoothly, even during outages. Lastly, keep an eye on any industry-specific features that could enhance your business operations.
