From Cash Registers to POS Systems: Facilitating Cashless Transactions

Every successful retail business processes numerous transactions daily. To manage these volumes of transactions, physical stores require tools that facilitate the smooth functioning of a business operation.

Cash registers or point of sale (POS) systems are known as the ‘heart of any retail business’. Even though both these terms are used interchangeably, there are stark differences between cash registers and point of sale (POS) systems.

In this article, we have discussed cash registers and how they’ve evolved into modern-day point of sale (POS) systems. 




What is a Cash Register?

Cash registers are automated money handling machines that come with a cash drawer, prompt the amount of each sale, and record the amount received.

Did you know that “In 2020, Cash registers were the world's 881st most traded product, with a total trade of $3.26B”?

The cash register was invented in 1879 by James Ritty, a whiskey, wine, and cigar merchant to prevent theft. These sturdy devices, also known as ‘till’ were used to record sales, store cash, and sales documents, and issue payment receipts. The introduction of touchscreen cash registers made cash registers more easy-to-use, thereby increasing their demand.

 

What is a Point of Sale (POS) System?

Even though cash and cash registers are a thing of the past, they are still relevant, which is why you can still look for cash registers for sale. Over the years, technological advancements led to the evolution of cash registers to a more aesthetic and multi-functional system that we now know as the point of sale (POS) system. These solutions are capable of performing multiple functions besides payment processing such as quick and efficient transactions, inventory tracking and management, customer relationship management, employee management, and generating and analysing sales reports. Every business operation requires a robust point of sale (POS) system to ease its day-to-day operations.

A point of sale (POS) is the place in a store where customers pay for the commodities/service they wish to purchase and the retailer/store executive issues a payment receipt, completing a transaction, for example, the checkout counters at a retail store is the point of sale (POS). To complete the transaction process, a set of hardware and software components is used, known as the point of sale (POS) system. The POS hardware bundles and software help in streamlining the business operations effectively.

There are different types of point of sale (POS) systems based on the choice of technology, mode of payment, receipt printing method, etc. Traditional point of sale (POS) systems are the ones that are usually fixed on the countertops and require a site server to function. 

Types of Point of Sale (POS) Systems

The main function of a point of sale (POS) system is to process payments and manage sales. In order to pick the right point of sale (POS) system, it is essential to know about the different types of point of sale (POS) systems since the hardware configurations and software play a major role in determining the functions of any point of sale (POS) system.

The common types of point of sale (POS) systems are:

Mobile Point of Sale (mPOS) System: These point of sale (POS) systems require portable devices like smartphones, tablets, or iPads for payment processing, inventory management, and storing customer information. If you do not have huge inventory volumes to manage and you can carry your business operations on the go, then the mobile point of sale (mPOS) systems are the perfect option for you. These solutions usually come with a credit card reader and a portable receipt printer.

·         Terminal Point of Sale (POS) System: This type of point of sale (POS) solution can usually be spotted at the checkout counters of a store. The functionality of terminal point of sale (POS) systems depend on the combination of hardware and software components and are usually available in packages. Terminal point of sale (POS) systems offer 24/7 customer support throughout the year along with cloud backup. 

·         Online Point of Sale (POS) System: This type of point of sale (POS) systems are capable of functioning on electronic devices like desktops or tablets, for example, IPAD compatible bundles. The upfront cost of online point of sale (POS) systems is low and can speed up low-volume businesses. 

·         Self-service Kiosk Point of Sale (POS) System: This type of point of sale (POS) system is designed to offer specialised solutions for specific purposes and iscommonly seen in large retail stores. Self-service kiosk point of sale (POS) systems allow customers to check the availability of goods and their prices. 

·         Multichannel point of sale (POS) System: If you own more than one online or physical store where you sell your merchandise, then this type of point of sale (POS) system is the perfect option for you. Using this type of point of sale (POS) system, you can oversee all your stores from a single location. Not only this but you can also re-stock the products that are in-demand before they run out of stock. Besides, these systems can integrate sales across online stores, social media pages, and storefronts. 

·         Open-source point of sale (POS) System: This type of point of sale (POS) system allows you to customise the point of sale (POS) software to make it function as per your requirements. Open-source point of sale (POS) systems are comparatively expensive as you would require assistance from IT professionals to set them up. That said, these solutions are best for enterprise businesses and provide an exclusive point of sale (POS) needs. 

Components of a Point of Sale (POS) System

There are two components of a point of sale (POS) system - hardware and software.

Hardware Components

·         POS Terminal: The point of sale (POS) terminal is the device on which the point of sale (POS) software is installed. These devices are usually in the form of a desktop, iPad, or tablet and facilitate the checkout process. Initially, these checkout processes used to take place at a specific checkout counter. But, with the introduction of mobile point of sale (mPOS) systems, payment processing and checkouts take place from any location within the store premises. All you need is a stable internet connection and a sturdy device. 

·         Barcode Scanner: One of the most hardware components of a point of sale (POS) system is a barcode scanner. As the name suggests, these devices are used to scan barcodes from commodities, extract information and display them on the monitor. This expedites the transaction process and helps track inventory levels, availability of products, etc. 

·         Payment Processor: Most customers these days prefer cashless transactions as they are convenient and quite secure. As a retail business owner, owning a payment processor that can support any mode of payment is crucial. This ensures contactless payments in a physical store and is convenient for customers as well. 

·         Cash Drawer: Albeit cashless transactions are trending, there still are customers who prefer paying in cash. To store the cash and other payment-related receipts and other bills safely, it is necessary to have a sturdy device. This is where cash drawers are beneficial. There are different types of cash drawers in the market, starting from flip-top cash drawers to USB cash drawers. Most of these devices come with compartments where you can segregate the bills and cash and store them safely. 

·         Receipt Printer: Another crucial hardware component of a point of sale (POS) system is a receipt printer, for example, Zebra ZD410 Direct Thermal Printer. These devices, as the name suggests, are used to print payment receipts and contain purchase-related data like date and time of purchase, place of purchase, product name, SKU number, price of the product, etc.

 

Other than the above-mentioned hardware components, there are a few other tools that some businesses require, such as:

·         Customer-facing Display: These devices are usually placed on the checkout counters and display the amount owed by the customer for the purchased product/service and the cost breakup. These devices are preferred by most businesses as they help in maintaining transparency with the customers and therefore provide better customer service.

 

·         Self-service Kiosks: As the name suggests, these devices are self-order point of sale (POS) systems using which customers can place their orders and pay for them on their own. These devices allow contactless customer service and customers can conveniently purchase the required products without having to wait in long queues at checkout counters. These devices help boost business operations efficiently.

 

·         Scale: Scales are an essential tool especially if you own a grocery store, a warehouse, or a laboratory.

 

Software Components

Also called the ‘backend’ of a point of sale (POS) system, the software components are used particularly for analytics and backend management. The point of sale (POS) software is the operating system that can integrate the hardware components to ensure that they work in sync, ensuring seamless business operations. The store employees use the front-end interface and the back-end is accessed through a browser or application. High-end point of sale (POS) software allows users to operate and manage the entire business operations from one single location. There are two methods to store data, on-site and cloud-based. On-site data is installed on the local server and you need to purchase software licences to use them whereas for cloud-based storage, also called Software-as-a-Service (SaaS), data is hosted online and you can access it from the browser from any location, at any time. Some of the popular point of sale (POS) software are Vend, Square POS, Shopify, and LightSpeed. 

Conclusion

If you are a new retail business owner, looking for the perfect point of sale (POS) system for your business, POS Plaza is your one-stop shop for all your point of sale (POS) needs.

Our extensive collection of premium point of sale (POS) brands available at competitive prices will surely grab your attention. Should you require personalised assistance with your shopping, get in touch with our experts who will help you pick the right solution that will meet your business needs and your budget.

Location: Australia

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