In the business world of today, merchants no longer have to be tethered to their shops with old-fashioned mechanical — or even electronic — cash registers to process transactions. As you might expect, the technology has continued to advance, allowing a business more freedom with respect to point-of-sale, also known as POS transactions. This refers to the time and place where a given retail transaction is completed, or the point at which customers make payments for goods or services. Essentially, POS is a computerized network hosted on a main computer and linked to multiple checkout terminals, which may be either hardwired or wireless.

Point-of-Sale Convenience

Just prior to the turn of the century, wireless computer networks became widely available, enabling POS systems to go mobile by sending transactions over radio waves through the air. Restaurants were quick to leverage what was at that time a new technology. It helped accelerate the payment process, allowing servers to process credit cards right at the table. POS software is now so advanced that it has rapidly begun to replace traditional methods, largely due to its convenient portable nature. A car rental company can now process transactions right at the curb, and hotels can send servers out to the pool, taking drink orders from guests on tablets and other mobile devices. Small business owners can even process transactions at festivals and fairs, using a device that plugs into a cell phone.

Features and Trade-Offs

With a point-of-sale system, a business can now take advantage of inventory software programs to track usage, quickly make changes to prices based on costs, send reminders when it's time to reorder and even analyze inventory levels in stock on an item-by-item basis. Business owners can even control their store's inventory from the cash register with these practical and useful systems. The POS software makes a record of each sale as it occurs, so inventory records are always up to date. In addition, more information about the sale is available for analysis than one could glean from a manual system. Business owners can easily run a variety of reports to make better decisions about orders, pricing and merchandising. So what seems to be just a payment solutions is also a value-added business solution! 

Security of Wireless Transactions

Security can be ensured by using encrypted card readers that minimize the chance of a customer's information being stolen. Contactless payment options are also growing in popularity. These systems use cards with a built-in computer chip, allowing the buyer to tap or wave the card over a terminal or reader. This technology can accelerate transactions by 30 seconds, allowing staff to keep lines moving more quickly. There is even a POS system that allows completely contactless transactions via mobile phone. Customers pay for purchases by simply waving an enabled phone near the terminal.

There is no one-size-fits-all solution for processing payments. However, while it may be that none of the prepackaged systems meets every requirement or need of a given business, there are industry-specific POS packages for everything from auto repair shops and dry cleaners to restaurants and video rental stores, and more. Many POS system manufacturers are happy to tailor their software to the requirements of an individual business or industry.