Having a POS (point of sale) system in-store is integral as contactless payments have become popular among consumers who favour touch-free card payments. According to data from consulting firm Dynata, seven out of ten people surveyed said they had a contactless method before the pandemic. This is particularly relevant for the UK market, 81% of surveyed consumers were more likely to say they had access to contactless payments than consumers in all other countries had.
Additionally, having a POS device for in-store card payments can free up time and help you boost your revenue. Besides, who would want to miss out on sales and see customers who prefer to pay by card walk away? Moreover, contactless and mobile payments lead the way when it comes to millennials, an ever-growing demographic with notable economic force. The contactless functionality has helped card payments take off, indicating that retailers who accept card payments of any type should not only diversify their payment offering but remain competitive and drive more sales.
Although there is no silver bullet if you’re on the lookout for the best POS terminal, you should get acquainted with the very basics of card-present transactions. Watch the video below to learn everything you need to know about POS terminals and card machines.
What is a POS terminal? / POS terminal definition
The definition of a POS terminal is an electronic system that is mainly used in physical retail locations to process card payments. In a nutshell, POS terminals enable card data capture and the secure transfer of funds from the customer’s account to the merchant’s.
This is not to say that the whole checkout process is exclusively represented by a single POS machine. Modern POS terminals can integrate with ECR (electronic cash registers) and ePOS (electronic point of sale) systems to help merchants facilitate their operations and ongoing tasks.
A POS system often comprises of the following components.
- A POS terminal where customers tap their card or enter their PIN, better known as chip and pin payment.
- ePOS system used in conjunction with physical equipment such as the POS terminal and a computer or a tablet
- An ECR (electronic cash register)
- A barcode scanner
These are just a few examples of the hardware usually linked with POS terminals; each type of business requires different hardware, depending on the nature of the products or services offered to customers.
How POS terminals work
Now that you’ve got the grasp of what a POS terminal is, let’s find out how it works. Every transaction is initiated when the customer is ready to pay for your products or services. emerchantpay’s POS terminals offer you the below options.
- Standalone terminal: A standalone card terminal is separate from the ePOS system. The cashier keys the amount into the terminal before the customer can pay with their card. As there is no communication between the ePOS system and the POS terminal, the cashier must register the transaction manually onto the former. Encrypted card data travels directly through emerchantpay’s secure payment gateway for real-time payment authorisation by the card schemes. The authorisation response travels back from the payment gateway to the POS terminal. All sensitive payment data is processed through the POS terminal and never touches the ePOS system, significantly enhancing the transaction security and reducing the PCI burden for the merchant.
- Semi-integrated terminal: Semi-integrated terminal: In a semi-integrated environment, the amount due is keyed or scanned in the ePOS system and then sent to the POS terminal. The cardholder either taps their contactless card or inserts their card in the terminal and enters their PIN. Encrypted card data travels directly through emerchantpay’s secure payment gateway for real-time payment authorisation by the card schemes. The authorisation response travels back from the payment gateway to the POS terminal, which then forwards the confirmation to the ePOS system. In a semi-integrated setup, sensitive card data never touches the ePOS system or other merchant infrastructure, resulting in increased payment security and PCI compliance reduced to the POS terminal.
- Fully integrated terminal: With a fully integrated POS terminal, the amount due is scanned or generated via the ePOS system and sent to the POS terminal. The cardholder is prompted to tap or insert their card and enter their PIN. Encrypted payment data is transferred from the POS terminal to the ePOS system which encrypts the sensitive data, then passed onto emerchantpay’s payment gateway for real-time payment authorisation by the card schemes. The authorisation response travels back from the payment gateway to both the POS terminal and the ePOS system.
Where a fully integrated terminal differs is both the ePOS and POS terminal access the sensitive card data. A fully integrated terminal provides merchants with various benefits, such as sales and transaction data or inventory management. Furthermore, a fully integrated terminal means that merchants will only need to maintain a single database with all key data for better-informed decisions. At the same time, this translates to higher maintenance fees and considerably increased costs relating to PCI compliance across all hardware and software that transmits or stores sensitive cardholder data.
POS terminals and contactless payments
In the wake of COVID-19, contactless payments have become more popular than ever. In September, the proportion of debit card payments placed using a contactless functionality reach its highest level in the UK; data from UK Finance show that contactless accounted for 64% of all debit card transactions and 46% of credit card transactions. To combat the spread of the virus, UK legislators increased the contactless payment limits from £30 to £45 in April 2020. As of January 2021 and in the aftermath of Brexit, UK Finance has requested from the UK government to raise the contactless payment limit to £100. Contactless payments include payments made with NFC-enabled credit or debit cards and popular digital wallets like Apple Pay and Google Pay™.
POS payment solutions for your business
A reliable POS system is indispensable for retailers of all sizes. Consumers want to be able to pay for their purchases anywhere, any time. Paired with advanced technological features and popular payment methods, POS terminals are essential for every retailer that wants to build and grow their business.
emerchantpay can provide merchants with a sophisticated range of POS terminals, coupled with the latest security requirements and various network connectivity capabilities, including wireless availability so you can move your POS terminal around your store whenever needed. On top of that, you can seamlessly accept gratuities with our card payment solutions – tipping is a sought-after feature in sectors spanning from food and drink to beauty salons and hairdressers, just to name a few.
With a customer-centric approach, friendly user experience and equipped with the most up-to-date security standards, our POS terminals allow you to optimise your business and cover all points of the transaction. Accept major debit and credit cards, chip and PIN, magstripe and contactless payments and popular payment methods such as Apple Pay, Google Pay, securely and seamlessly. Our POS terminals can integrate into your current ePOS system in a few simple steps. With 18 years of expertise in the card payments industry, emerchantpay can help businesses of all sizes expand their payment options and optimise the customer experience in-store.
emerchantpay help retailers of all sizes accept card payments with our robust POS, payment gateway and acquiring solutions. Reach out to our payment experts for more information.
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