POS Solutions
Article | March 18, 2024
Digital innovations make a significant impact on the payment business. Point-of-sale is one such innovation that eases the payment mode. Traditional POS systems face several obstacles, such as data storage on local servers, higher upfront payments, limited access to the data, and higher costs. On the contrary, a cloud-based POS system is easier and offers more agility and access, making the payment process seamless and less time taking.
Customer expectations are constantly changing regarding seamless online and offline payment processes. Cloud-based POS systems ensure the best possible customer experience while staying relevant to the rapidly evolving technology. Making the lives of the customers easier is the primary goal of the payment service provider.
Deciding Between Getting a Traditional or A Cloud-Based POS System?
POS software has improved over the past decade, and many firms have hopped on the POS system bandwagon. There are different types of POS systems available, and you may get confused, especially if you are new to POS.
Purchasing a POS system is a long-term investment and should not be made without extensive research and knowledge. It would be best to compare the pros and cons of traditional and cloud-based POS options. Identify your business's needs and select the right POS system.
On-site or existing POS is an old method. The data is stored on local servers and in closed networks. It is commonly known that standard POS systems can be complex and time-consuming. Also, installing large hardware adds to the cost of getting started. If you use older methods, you might be able to access data on-site, but you could lose it.
A cloud-based POS is easy to use and easy to get to. The cloud-based POS system is adaptable and can easily add new modules or apps from other corporates. The software is rented by the month or year. Methods that use the cloud allow mobile access which means you can leverage the functionality of mobile POS without fully implementing a mobile POS system. POS software that runs in the cloud is also automatically backed up.
Cloud-based POS software offers incredible benefits for your business.
Reasons for Opting for a Cloud-based POS System
Cloud POS Systems Are More Secure
A cloud-based POS system lowers all types of risks due to stringent security standards. Cloud technology allows the POS software to automatically backup the data and sync via remote servers. The regular updating of the system increases the security level of the software.
Remote System Access
Switching to a cloud-based POS system allows you to access your back-office functionality from anywhere. This capability gives you the ability to receive important updates regarding inventory or vendor issues on your mobile or home computer. You will also benefit from the security of cloud backup for your data.
Cost-effective
Cloud-based POS may appear to be more expensive than conventional POS systems. Nevertheless, cloud-based technologies are preferable for SMBs. In contrast to traditional POS systems, cloud-based SaaS has no upfront costs and has low monthly rates. Automatic software updates are delivered, and the system can update itself.
Better Customer Service
Cloud POS is compatible with various payment options and can send invoices through email or SMS. This enhances the purchase experience for your brand's customers. Customers interested in simple technology like simple processes are thus satisfied with the commercial services a POS system delivers. By choosing a cloud-based POS system, you'll always be able to meet customer needs quickly. Also, remember that you can get updates, which are meant to change some features to fit how people use them.
Conclusion
We’ve seen a few reasons that why you should consider transitioning to a cloud-based point-of-sale system, but the list is unlimited. If you have not considered implementing a point-of-sale system, now is the time to do so. The most prominent upside is that a sound POS system facilitates sales and increases the capacity to attract more clients.
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POS Solutions, POS Retail, Ecommerce Merchandising
Article | June 10, 2024
Running a small business requires a tight eye on profits. More than likely, you will face scenarios in which you incur higher transaction fees you didn’t expect and could have avoided in the first place. Knowing how to navigate processing fees is a key part of your success. Whether you run a single location, a multi-location business, or even a mobile business, avoiding unnecessary fees should be part of the game plan.
Unfortunately, less-than-reputable POS providers are out there, and understanding fees associated with taking payment from customers isn’t easy, but knowing what to look for will help. In this article, we cover fees to keep an eye on and how to save more on your processing fees.
How To Avoid Paying Unnecessary Credit Card Processing Fees
Unfortunately, if you want to accept credit and debit cards as a form of payment in your business, you’re going to experience processing fees. The financial benefits outweigh the transaction costs, but you can still save some money on your POS system and credit card processing.
Negotiate Your Processing Fees
The reason it can be so hard to understand the actual cost of processing fees is that many merchant service providers bury fees in the fine print, and these fees can come back to haunt you. In general, the more upfront a company is about all its charges, the more trustworthy and reliable they are because they have nothing to hide, and typically those rates will be fair. But it also helps to keep an eye on certain aspects of a contract. You can then negotiate them or repackage services to boost your profits.
Transaction Fees: Choose The Right Plan
When setting up your contract, you are given the option of a range of credit card pricing plans. Here are three of the most common pricing models.
Interchange Plus Fee Pricing
This option offers different transaction rates for different card types, bank issuers, methods of transactions, and more. By understanding these fees when processing transactions, you can benefit financially by encouraging the usage of certain cards or procedures that are least costly.
Tiered Pricing
In this scenario, you are charged different rates for different tiers created by your provider. It’s important to evaluate this option carefully because most transactions can fall into a less favorable tier rate.
Flat-fee Structure Pricing
This fee allows for one charge for card-present (CP) transactions and another for card-not-present (CNP) transactions, regardless of card type. This predictable, one-rate pricing model is easy to follow, allowing you to encourage a lower cents-per-transaction option and formulate special pricing deals. However flat-rate can sometimes come out as more expensive than interchange-plus pricing.
How To Avoid Monthly PCI Compliance Charges
A semi-regular fee many merchants run into is not falling in line with PCI Compliant in how they handle payment information. Being PCI compliant means maintaining important standards for customer data protection, and it is taken seriously. Compliance is required for major credit cards such as Visa and Mastercard and is becoming more popular as businesses continue to shift to online sales.
Rule enforcement is most often the responsibility of payment processing companies. Your provider will charge you two fees: a PCI compliance fee – which is once a year – and a PCI non-compliance fee – which occurs every month you have not completed your yearly PCI Compliance audit. Providers are free to charge however much they like for each service, and it can range anywhere between $30-$99 a month. Monthly charges are done both directly or indirectly via higher monthly fees, processing rates, or both. In some cases, the charges begin months after originally signing up with the processors hoping you won’t keep a close eye on all your ongoing processing fees.
As a merchant service provider, we at BNG Point-Of-Sale have a long and reliable history in helping our customers practice PCI Compliance within their business and avoid non-compliance fees.
PCI Compliance is necessary and it does require some work by the processors, so the charges aren’t a hoax, but there are some ways to keep costs down:
You can take on the responsibility of PCI Compliance yourself and forgo the processor’s fee; however, you will be on your own if issues arise. In today’s world of increasing e-commerce, it’s not recommended.
You can prevent the risk of non-compliance fees by working with companies that handle compliance internally. If they (not you) are the source of customer purchasing data, they are automatically in charge of it. Square and PayPal are examples of companies that handle all PCI Compliance, and we often account for these services when onboarding our customers and annually remind them to follow PCI Compliance.
At first glance, it may appear you are not charged by these companies for compliance and non-compliance, but in reality, compliance is still built into the standard fee for service; you just won’t see it specified. Still, you won’t be responsible for non-compliance fees since they own the data and are fully responsible for it.
The amount of compliance required of your business depends on how you take in payment and store customer data. Since processors have numerous clients and prefer not to get specific about it, they may charge a basic fee to cover most issues. This means you could be overpaying, so it’s a good area to evaluate this price of the packaged service vs. when it is priced individually.
There may be companies that don’t charge for compliance, but they are rare and may be suspect. In most cases, any free compliance is covered with higher fees in other areas.
How To Avoid Chargeback Fees
Chargeback fees should be avoided since they are more expensive than traditional transaction fees – especially if you are categorized as a “high risk” client. The first step is to avoid chargebacks in the first place.
Chargebacks can be the result of sales errors by you and your team, a misunderstanding by the customer, or the result of identity theft. Here are some ways to combat each.
Reduce Transaction Errors
Know when to stop a transaction. If an error occurs, push the cancel/hold button inside the transaction. If you are unable to do this, the transaction has already been claimed by the processing company.
Accurately process credits as credits and sales as sales.
Receive an Authorization Approval Code (AAC) before running a transaction.
Before batching your credit card processing at the end of the day, review all charges to verify all charges are correct and not duplicated. Keeping this as an active daily routine can prevent costly mistakes.
Ensure shipped items arrive to the customer to avoid disputes. Select the “ship product to billing address” to alleviate data error.
Keep Records Of Voids
Provide records to your customer of any proof of voids and include companion documentation for any disputes showing details of each purchase.
Decrease Risk Of Theft
If your processor charges more for card-not-present transactions, which most do, it’s because the risk of theft is higher. By requiring a driver’s license and signature and doing manually keyed-in card payments in person rather than over the phone, you lower the risk and enjoy lower charges per transaction.
Try to avoid non-qualified processing (when a card isn’t present or keyed or is missing billing information.) This type of processing is considered a high-risk factor, and processors charge accordingly.
When Possible, Run Orders On Debit Cards
Debit cards are considered a lower risk than credit cards and, in turn, the transaction rates are quite a bit less. This has mostly to do with the fact the purchase is a direct bank-to-bank transaction, but other factors make a difference such as PIN verification and signature requirements, bringing these purchases into a lower risk category. And typically the rates hold. You will still experience rate differences among debit cards related to how the purchases are conducted and who the issuing bank is.
Special incentives such as loyalty programs for debit card users help to easily boost profits.
A Final Thought On Keeping Processing Fees Low
As you can see, several variables can affect your processing rates. From fines to the pricing model your merchant service provider recommends, there’s a lot to consider.
As tempting as it can be to just try and find the cheapest option, be careful going with the lowest bidder. Remember, all POS and payment processing providers have to make some money to cover the costs of support their merchants. If you choose a processor with incredibly low fees, you run the risk of getting what you pay for when it comes to supporting your business.
If you’re not sure if you’re overpaying on your processing fees and want a free analysis, let our team review your current monthly statements and we’ll let you know if you’re getting a good deal or not.
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POS Solutions, Ecommerce Merchandising
Article | June 7, 2024
Delve into key trends in cloud POS technologies and understand how these payment technology trends enhances customer experiences, transactional security, and improve enterprises positioning.
Introduction
The retail and hospitality industries have seen an exceptional transformation in recent years, driven by shifting consumer expectations and accelerated technological advancements, where the adoption of cloud Point of Sale (cloud POS) systems has emerged as one of the most transformative innovations. These advanced cloud-based solutions are revolutionizing the ways in which businesses manage sales, inventory, and consumer interactions.
The adoption of cloud POS technology is no longer a choice but a strategic imperative for businesses, especially in the retail and hospitality sectors. The convergence of mobility, enhanced security, data-driven insights, sustainability, and omni-channel capabilities makes cloud POS systems an indispensable tool for success in a rapidly evolving business space.
From Cash Registers to Cloud: The Future of POS Trends for Businesses
In an era distinguished by technological advancement and rapidly changing consumer expectations, businesses across numerous industries must deliver a seamless customer experience to remain ahead of the curve. As cloud point of sale technology offers numerous advantages to businesses, such as increased flexibility, accessibility, security, integration capabilities, cost-effectiveness, and disaster recovery, the incorporation of these advanced payment solutions has become imperative.
Cloud based POS solutions provide an undeniable competitive advantage, and businesses must not only install them but also maintain an acute awareness of the most significant trends in this space. Here are some critical emerging cloud POS trends to keep an eye on in order to future-proof the company:
Inclination Towards Mobility and Tablet-Based Solutions
As businesses increasingly employ tablet-basedcloud POSsystems, the conventional idea of static, fixed-point cash registers are becoming obsolete. These solutions enable sales staff to complete transactions and provide assistance to customers throughout the store, introducing a new level of adaptability and productivity. By embracing mobility and tablet-based POS solutions, businesses not only lower wait times and improve customer experience but also streamline their processes, allowing them to respond more effectively to the changing needs of the modern marketplace.
With the adoption of this trend, businesses gain a competitive advantage by refining their operations and aligning themselves with the requirements of modern consumers who value both convenience and customization.
Emphasis on POS Integration Capabilities
With a growing emphasis on customer data, behavior analysis, and inventory data, the integrations between cloud based POS systems and mission-critical software applications, such as e-commerce platforms, inventory management, accounting, and customer relationship management (CRM) systems, are on the rise. This trend enables businesses to dismantle data centers and create a unified ecosystem in which information flows seamlessly between all operational aspects.
By keeping apprised of these integration features, businesses can lower manual data entry, eliminate errors, and obtain a broad view of their data, enabling them to make more informed decisions and enhance their overall efficiency and productivity. With this, integration has emerged as an imperative strategy for businesses seeking to flourish in a market that is becoming increasingly competitive.
Rise of Omni-Channel Commerce
Modern consumers expect an effortless buying experience irrespective of whether they are interacting with a business online or in person.Cloud-based POSsystems are evolving to meet these demands by integrating with e-commerce platforms, enabling consistent pricing and promotions as well as offering real-time inventory visibility across all channels. This allows businesses to provide services such as ship-from-store, returns and exchanges across channels, and buy-online-pick-up-in-store (BOPIS), which offers customers a convenient and seamless shopping journey.
The rise of omnichannel commerce is more than just a trend; it is an emerging need for organizations trying to remain competitive and create consistent, outstanding experiences across all touchpoints, eventually increasing consumer pleasure and loyalty.
Surge in Data-Driven Insights and AI
As the demand for better customer experience continues to grow, payment technologies such as cloudPOS systemsare no longer just used for transactional applications but are also used for robust data analysis and decision-making. Using the vast quantities of data generated by cloud POS software, businesses can now obtain valuable insights into sales trends, customer behavior, and inventory management.
Furthermore, the integration of AI enhances these systems by predictive inventory forecasting, resulting in facilitating advanced analytics and creating personalized marketing campaigns. In an increasingly data-centric business environment, businesses are thus focusing on adopting this cloud POS trend to make data-driven decisions that optimize their operations, improve customer experiences, and maintain a competitive edge.
Personalized In-store Shopping Experiences
The trend toward personalized in-store purchasing experiences represents a fundamental change in how businesses interact with their customers. This trend is a response to consumers' changing expectations, who want more than just transactions and seek meaningful interaction. Cloud based POS solutions are at the forefront of this innovation, allowing businesses to access real-time customer profiles, purchase histories, and preferences.
Leveraging this information, salespersons can deliver customized product suggestions, personalized promotions, and a level of service that resonates with each customer's specific wants and aspirations. This not only assists businesses to improve the in-store shopping experience but also fosters brand loyalty and encourages repeat business, positioning them for long-term success in a customer-centric world.
Bottom Lines
Cloud-based systems provide enterprises with the adaptability, security, and integration capabilities necessary to remain competitive and meet evolving consumer expectations. From improved safety and advanced analytics to omni-channel commerce and sustainable practices, thesefuture trendsprovide a road map for businesses seeking success in the digital age.
By staying abreast of these key cloud POS trends, businesses can position themselves as agile, innovative, and customer-focused. This proactive strategy ensures that they are not only keeping up with change but actively influencing their future in a competitive market.
As a result, the adoption of cloud POS technology is no longer a choice but a strategic imperative for businesses across various sectors. The convergence of mobility, enhanced security, data-driven insights, sustainability, and omni-channel capabilities makes cloud POS systems an indispensable tool for success in a rapidly evolving customer-centric space. By embracing these key trends, businesses can deliver exceptional customer experiences and drive growth in an increasingly competitive marketplace.
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POS Retail
Article | July 8, 2022
While retail has faced its fair share of challenges over the last two years, the pandemic has also provided an opportunity for a long-overdue great retail reset, which could help many retailers move into a more stable—and profitable—position. To get there, you must balance short-term challenges with long-term commitments and transformational thinking.
For nearly two years, predictions about the future of retail have appeared pessimistic, and retail headlines for 2022 don't look much better: empty store shelves, over one million unfilled retail jobs1, and surging inflation. However, these headwinds have resulted in some positive outcomes: retailers have been forced to re-examine legacy systems and strategies that have shaped the industry for years.
To reap long-term and long-lasting benefits, retailers should continue down the remediation path they started at the start of the pandemic in 2022. Indeed, the next 12 months’ present opportunities to restructure obsolete supply chains, rightsize inventory management, review pricing, rebalance promotional cadences, and reinvent the physical store for the digital age. This will almost certainly necessitate entirely new ways of thinking and long-term commitments from retailers, but these efforts have the potential to forever change the way retailers do business. That future begins today by addressing short-term retail challenges with a long-term perspective.
Three retail industry priorities and trends
The resulting data, when combined with insights from 15 Deloitte retail subject-matter specialists, client work, and prior research, provides a snapshot of strategies and investment plans that help inform the industry's future.
Reimagine the workforce
Supply chain resiliency
Digital revolution
Retailers face significant challenges that will almost certainly outlast the pandemic, but there are also unexpected opportunities that can help them prepare for future disruptions. Retailers should embrace the current disruption and commit to a future pivot. To learn more, download our complete 2022 retail industry outlook.
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