written by khatabook | September 27, 2020

What Is A POS Machine, Its Types? How It Helps Small Businesses?

In any organization, the sales department plays a pivotal role in the success of the business. Increased sales lead to greater benefits in the growth of your business. When you sell products and services, you get paid for it. Gone are the days when you used to get paid in only cash. These are the days of online payments. Especially after demonetization move of the govt., people have increasingly shifted to paying for things via online modes of payment or other cashless methods such as credit cards and debit cards, etc. For this reason, even the smallest of businesses need to have a POS machine at their shop.  The full form of POS is Point of Sale. Today, in the era of smartphones, cloud computing and RFID technology, even the smallest of businesses can become POS wizards. Point of Sale (POS) machines not only account for your sales but also other things such as payment processing, inventory management, customer management, payroll, creating product entries, calculating total costs and taxes, creating the bills, etc.

What is a POS Machine?

A POS machine system allows the customer to make a purchase and pay on the spot. It is where your transaction is finalized. It is a swipe machine kept at your reception to process the credit card, debit card or gift card payments whichever you accept at your business. A POS machine is an equivalent of a cash register. The POS machines help you streamline the processes and manage all of the other operations involved in managing the business. There are many types of POS machines and based on that you will need to buy a new POS machine. There are so many varieties available in the market from where you can choose the best type of POS machine for your business. While choosing the best POS system for a small business, you need to consider a lot of points such as: The features provided by the POS system you want to buy.

  • Cloud-based systems.
  • Integration with your existing business systems.
  • Compatibility of the POS system with third-party processor and hardware.
  • Ease of use.
  • Increased functionality and good pricing.
  • Company reputation and customer support service.
  • Software popularity.
  • Implementation and training services.
  • Track real-time data about sales performance.
  • Manage taxes.

POS Machine - Systems & Types

Mobile Point of Sale (POS) System

  • The app of such a POS system can work through smartphones or tablets.
  • They can process payments and manage some inventory and customer information. In most of the cases, the app is free in exchange for payment processing.
  • You get the card reader for free in most of the cases.
  • They also come with a portable receipt printer.
  • Freelance or contract workers, daycare providers, farmers’ vendors, street vendors, etc. are the ideal users for this type of POS billing machine.

Tablet Point of Sale (POS) System

    • You can use your already owned tablet or iPad to install point of sale solutions.
    • This will require minimal upfront investment as you already own the equipment and you just need to buy the software or an app.  
    • Mobile vendors, coffee shops, gift shops, small retail stores, pizza places, cafes, juice junctions, ice cream parlours, salons, professional services, etc. are the ideal users of this type of POS billing machine.

Terminal Point of Sale (POS) System

  • These are the type of POS systems that you see at the counters of many shops.
  • Though they are hardware and software-based systems, you will need internet access and use cloud-based software.
  • They are the all in one package that includes cash drawers, barcode scanners, etc.
  • Busy retailers, grocery stores, boutiques, salons, spas, electronic stores, grocery stores are the ideal users of this type of POS billing machine.

Online Point of Sale (POS) System

  • With this one, you can have your own hardware such as your own laptop or computer or a tablet.
  • This is suitable for businesses with low volume but big-ticket sales.
  • You can log in and use the service from any location and make use of the standard printer to print the receipt.
  • This type is ideal for small retailers, art galleries, small cafes, big-ticket retailers, etc.

Self Service Point of Sale (POS) System

  • These are specialized solutions tailor-made for a specific purpose.
  • For example, there could be a service kiosk for movie tickets at the movie theatres.
  • This type is ideal for the movie theatre, big retailer shops, malls, patient check-ins in hospitals, etc.

How Does A POS Machine Help Small Businesses?

There are many advantages of using a POS machine for small businesses such as:

  • Live data access.
  • Payment processing.
  • Automation of inventory management.
  • Accurate sales history.
  • Help in customer marketing.
  • Streamlining the taxes and accounting.
  • Simplifying the process of staff management.

Over the past few years, better and improved versions of the POS systems have come out in the market. Many affordable options are available for small or even micro-businesses. Portable and Wi-fi enabled options are available that provide increased freedom to your customers. With a defined budget and your particular needs, you can discover the best suited POS system from the various types available in the market.

Related Posts

A Beginners Guide to CGTMSE

A Beginner’s Guide to CGTMSE

How to Start An Agarbatti Making Business-  Planning, License  & More

How to Start An Agarbatti Making Business- Planning, License & More

MSME Registration In India: Procedure, Documents Required, Benefits

MSME Registration In India: Procedure, Documents Required, Benefits