In order to be able to successfully complete business transactions that are made through telephone, you should have the necessary tools of the trade. Naturally, you need to have a telephone line on which to receive orders from. However, apart from the mandatory telephone line, you need to have a Point of Sale system which can complete face-less sales transactions.

If you want to keep your equipment to a minimum, you should be sure that your Point of Sale System has the requisites: a terminal in which all data will be stored, a scanner which would retrieve the product data (price, product code, quantity) and a printer on which (of course) to print out receipts and similar documents. However, since you will be accepting payments and payment instructions made through the phone, your Point of Sale Software should have features that will enable more sensitive transactions to be completed. Your POS system should not require that a credit card be physically swiped through a magnetic strip reader, nor should it require a signature or a pin number for the purchase to be authorized. Your Point of Sale System should be able to process credit card payments even if you only plug in the name of the credit card holder, the card number, expiry dates and the verification numbers listed at the back of the card.

What you should ask Point of Sale system representatives is if the POS software needed for faceless transactions would be able to verify if the card is legitimate or not. There are programs that are integrated in the software wherein additional verification is conducted before the card transaction is processed and subsequently authorized. Your POS system should have this capacity and, in addition to this, the process of counterchecking the validity of the card should be done smoothly and in a very short span of time. If you program is capable of this, as well as other functions, then you should not encounter any difficulties in conducting business transactions in cyberspace or through the phone lines. Admittedly, it’s an unconventional way of doing business, but it’s a growing trend, and for you to survive, you (through your POS system) should be able to adequately and efficiently meet the demands of your market.

There are two ways by which credit card transactions can be verified. The first kind is through telephone, and the 2nd is online, through the internet. Credit card verification through telephone was the way card transactions were completed prior to the introduction of more sophisticated POS systems which integrated credit card functions in the program.

Between phone and internet based credit card verification processes, the latter method is most recommended. This is primarily because internet based verification can be completed in a shorter span of time than if the phone lines were to be used. This is because merchants seldom encounter busy signals nor do they have to wait for an open line. Through the internet, various staff members can simultaneously request for credit card verification through their individual terminals (provided, of course that the appropriate Credit Card Verification System software has been installed in all units) and subsequently receive the confirmation from the bank in an instant (usually within a few seconds). In addition, there is no need to install several phone lines and specifically allocate these for the purpose of credit card transactions.

Another reason why credit card verification through the internet is more preferred is that it is more secure. There are lesser chances that the data you are transmitting would be accessed by experienced phone hackers.

Apart from these benefits, it is easier to keep track of all transactions when credit cards are verified through the internet, instead of over the telephone. Most systems keep a database of information that is sent out and the data can be retrieved whenever necessary.

Finally, it is easier to complete credit card transactions through the internet. The attendant will only need to swipe the card through a magnetic reader and the machine will automatically transmit the data through the wires. Unlike phone based verification, a phone number must first be dialed, and oftentimes, the credit card number of the customer, as well as the price of the item being purchased, must be plugged in manually. This process takes time and is also prone to errors and is greatly reduced when using internet based systems. Verification through the internet is not only fast, it is also efficient, reliable and most importantly, safe – both for the merchant and the consumer.

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Generally POS aids businesses three ways: it helps save money, it is a source of vital, reliable and accurate information; and with correct usage a POS system can increase your business’ efficiency.

A complete POS package is a capital investment. However, even though you may have to shell out substantial money at the onset, you will, in the long run, be saving money. Through the advanced functions of POS systems, you are able to keep track of your sales and inventory figures on real time. Shrinkage due to theft, waste or improper recording procedures are minimized, and you can be assured that the prices rung up on the register are up to date.

Since POS systems can keep track of your inventory and have the capacity to store vital information in its system, a lot more data are within your reach. Sales figures for the day, week, month or year can easily be retrieved. POS Systems can also alert you when your stock has reached its minimum level, and through the internal database, you can find out how much you paid during your last order, who your last supplier was and you can even get the average price you pay for an item in a given time frame. You will be in a better position to negotiate with suppliers and you can also use the data to predict trends and make accurate forecasts. In addition, you can also record client preferences, data which you can use for incentive programs, in your POS system.

Finally, with a POS system, productivity levels will definitely increase. At the back of the house, tedious inventory processes are shortened, and repetitive paperwork is reduced. At customer contact, a POS system makes checkout faster and more efficient. By streamlining all the other processes necessary to run your business, you and your staff will have less burdens and will have more time to focus on meeting client needs.

With all these benefits clearly within your grasp, there is no doubt that a POS system is indeed a worthwhile investment.

Admittedly, POS software do work well, but the downside to this is that you only get very basic features. Most of the time, free POS systems only record cash transactions. If that’s the only function you need, then using a free POS system would not be a problem. If, however, you need a system that can perform other functions, including but not limited to fund transfers, inventory control, customer retention management, then you will find free systems lacking. In some instances, you may be able to access these programs (or modules) but features apart from those included in the standard package would usually be subject to a fee.

With free Point of Sale software, you are basically, left to fend for yourself. You may be responsible for installing the program into your machine and may even have to navigate your way around the system because more often than not, you will not receive any free training or at least a product demonstration with free POS software. In case you encounter any technical problems or glitches, very few free POS software providers offer technical support (whether online or phone-based). You may have to bring in a professional to help get your program to function well, and in so doing, you may end up spending more than you would have if you had opted to purchase a POS software in the first place.

If you are serious about running your business, you should know when to cut corners and when it is time to invest. Purchasing a POS system is one of the many aspects wherein you should spare no expense (at least, within limits and only after you have determined which program would best work for you). If you select your system well, you should be able to see how the program has made running your business much easier, and if you are able to fully harness and maximize the potential of the system, you should be able to regain your investment in no time at all.

Your POS System will be sustaining your entire business. Therefore you should not look at it as an expense, but as an investment necessary for your success.

In olden days, inventories were painstakingly recorded on log books or on several index cards. Someone would be tasked to manually count every item on stock and tally it with what was sold for a particular period. Keeping track of inventories was tedious and time consuming. Retail shops would often allocate a day or two for their inventories thus losing valuable income. In addition, manual inventorying is prone to human errors - more often than not the business would experience unnecessary losses. All this, of course, has changed ever since the introduction of POS Systems.

POS systems where the functions of sales and inventories are integrated can be considered a necessity in a business, particularly one that is involved in the retail trade. With one swipe across a scanner, the product purchased will immediately be deducted from the running balance in the inventory. When the balance reaches a particular level, you are immediately alerted and you can make the necessary orders to replenish your stock.

Upon arrival of the stock, wireless scanners make the task of receiving orders easier. You no longer have to manually count all the items delivered to you nor do you need to record all the details in a log book and, later on, transfer the information to your company’s central database. Using a laser scanner (pen type or otherwise), or an image-based / CCD scanner, you can record and transmit all the relevant information (date received, supplier, cost, quantity, product code) in an instant.

What makes wireless scanners ideal for retail shops is its ability to transmit information in real time. You don’t have to schedule a time to do your inventories, nor do you have to spend considerable time updating your records. Wireless scanners are also quite compact and are very handy. You can carry it along with you wherever you go. With this little device, inventorying will be faster, easier and more efficient. You can then spend your time taking care of your customers instead of worrying about your supplies, which should be the case in the first place.

Evaluate your business. What industry are you in? Are you selling goods and services or are you more into providing a form of service? You must first know if your business is a retail establishment or one that is involved in the hospitality industry because there are two kinds of POS Systems, one for each industry. POS for retailers are fairly simple since transactions are completed almost immediately and there products being sold are fairly standard. POS for hospitality businesses, on the other hand, are more extensive and are usually capable of performing several tasks.

Next, you need to determine the size of your business, why you want a POS system and what its use in your business will be. If your annual revenue is not yet significantly high (below $500,000), an electronic cash register may be enough to meet your needs. If however, your revenue is much higher, then a POS System with more functions may be more appropriate.

You should also look at the equipment you already have. Getting a POS system is really an investment because, not only do you need to pay for the software itself, you also need to have the proper tools for it. Aside from the cash register, you may need, at the very least, a scanner, a printer, and a credit card terminal (either handheld or otherwise) among others. If you are unsure about what equipment you need, you can ask a sales representative to visit your establishment and give you his recommendation.

You also need to evaluate your skills and those of your employees. Upon the installation of the POS system, you will have to spend time learning how to use the equipment, and allocate enough man hours to train your staff. If you and your staff are not very adept at using very complicated machines, then you should settle for a simpler yet equally efficient POS unit.

Finally, you have to carefully evaluate the services the POS provider is offering. How much will they charge you for installation of the program, do they have warranties on their products, who are their other clients, can they easily be reached if you encounter any problems with the system, what after-sales support can they provide – are just some of the questions that need to be answered adequately. If you are fairly satisfied with what the company has to offer, then you may proceed with the purchase.

Purchasing a POS system should not be done without putting much thought to it. A POS system is an investment and, if you’ve invested wisely, you should see its returns reflected on the income statement of your company.

POS systems are proving to be abject necessities in today’s cut-throat industry. Through these devices, checkout is faster and more efficient, inventory taking is more accurate, sales reports for the week, month or year can easily be generated, and you have the ability to store vital client information such as their preferences. Today, it is no longer enough that you give your customers a very good shopping experience through the environment and the service your staff provides. You and your staff must also find a way to anticipate client demands and find a way to provide these the minute these are requested – a difficult task but through POS systems, this no longer is insurmountable.

If you’re looking for a POS system, it may be to your advantage to get a complete package instead of buying hardware and software piecemeal. If you purchase a complete set (all-in-one POS), you get the software as well as all the paraphernalia such as display screen, keyboard and mouse, cash drawer, magnetic card reader, barcode scanner and printer, needed to efficiently run the program. Some opt to buy these items separately in an attempt to cut down on costs but in so doing; they may be putting the POS or the equipment at risk.

The major benefit of purchasing your POS system as a set is that you can be assured that every function is well integrated. All-in-one systems can provide you with store wide reports and even share files. In addition, every device will be compatible with one another. The probability that one will not function properly is greatly reduced. These are also easier to install as they would probably require less external calibration.

When buying an all-in-one POS system, don’t just focus on the price. You should also consider other aspects such as how ergonomic the devices are; how easy these will be to operate; how the programs are backed up and the methods by which you can retrieve information; how durable the devices are (this, incidentally, would also depend on the environment on which your business will be located). Believe it or not, all these seemingly insignificant factors matter.

An all-in-one POS system could well be the solution to all your problems, however, if you select the wrong kind or buy one that is not suitable for your business, the POS system that could have been your ticket to salvation may, in fact, do your establishment more harm then good.

Merchants have the option to choose from one of three kinds of Point of Sales Systems. The first kind of POS system is termed Standalone Electronic Cash Registers or ECR. These have very limited functions as each ECR unit operates independently of each other. These devices can only provide individual sales reports and can not integrate with other units however; these machines can still compute sales and taxes; change due the customers; basic sales reports; and, to some extent, scanning. ECRs are the most reasonably priced POS systems around, and this is what makes this option a favorite among small and start-up businesses.

Another option available to merchants is called the Network or ECR based POS System. This kind of system is similar to the standard ECR but, unlike its predecessor, all the units or terminals are interconnected. All their data are linked to one main ECR in the establishment and this machine collates the information. The functions, however, are still limited. Tracking of inventories and detailed generation of reports may still need to be done manually.

Finally, the third option open for merchants is the Controller-based POS system. Controller based systems are the most comprehensive types as all the terminals and functions are integrated. Data from each of the terminal, whether the cash register at the check out counter, or the pen-type scanner used to receive items from suppliers, flow to a central core or main system where these information are processed and stored. Because of the method by which data is inputted (scanning), merchants can be assured that erroneous entries would be minimized and data presented on reports are almost 100% accurate. In addition to this, what makes controller-based systems valuable is the dual-controller arrangement – an internal configuration which allows each computer to back each other up. Through this feature, merchants feel more secure about the safety of their files. They know that, in case the main computer bogs down, the information contained can be retrieved from other sources.

Which type of POS system should be installed in your establishment would depend mainly on your present and projected needs. If you feel that you only need an ECR then don’t let a glib talking salesman convince you to buy a Controller-based POS system. You need to fully utilize the potential of your POS system. If you are unable to do so, then this device will be nothing but a very expensive and highly elaborate cash register.

Basically, the Point of Sale or Point of Service (also known as POS / PoS), is the place where a business transaction, particularly a sale, takes place. It could be at the checkout counter of a retail store or the cashier in a restaurant, hotel or other retail enterprise. Having established that, a Point of Sale System is the equipment or set of equipment used to formalize the retail transaction made at the point of sale. These can be as simple as an abacus and a sheet of paper (to serve as the receipt) or as technical as a wireless scanner attached to a cash register. The term POS is also used to describe the computer program (hardware and software) installed and used for checkouts.

There are two kinds of POS systems: one designed for retail operations such as stores, boutiques and the like; and another for hospitality-based businesses such as restaurants, bars, hotels and casinos. POS for retailers are simpler in structure than POS designed for the hospitality industry, which usually has, more functions.

POS systems first entered the mainstream in the first half of the 20th century, after modifications and improvements were made on standard mechanical cash registers such as the crank-operated NCR and the lever-operated Burroughs registers. Computer driven registers as well as POS systems with bar code readers were, surprisingly, introduced as far back as the 1970’s.

The 1980’s ushered in a new era of POS systems. With the proliferation of plastic money or credit cards, new mechanisms had to be developed – equipment that could process credit card verifications efficiently, safely and securely. Since then, POS systems evolved and it still is evolving at an alarming pace. To date, there are POS systems that are capable of processing multiple transactions and/or applications, integrating various functions from verification of credit cards and gift cheques, to processing of payments and issuance of receipts. These devices no longer just keep a record of sales, these can also help businesses keep track of their inventories and assist management in diverse tasks such as accounting and payroll.

POS Systems, whether these come in the form of actual machines and equipment, software applications or a combination of both, are some of the most powerful and integral tools in the retail industry. Almost all retail establishments, irregardless of shape, size and structure, are equipped with a POS system in one form or another. It is impossible to imagine any business, no matter how small, to survive in today’s highly competitive environment without such valuable tools of the trade.

Related Link: Try a web based point of sale system. Web based systems are easier to setup, less expensive, and don’t require a computer expert at your retail location to manage.

Researches indicate that an average retailer loses thousands of dollars worth of stock due to improper and incorrect inventorying procedures and records. This is minimized immensely through POS systems. The moment a product is rung up as a sale, the figures in a retailer’s inventory record are automatically updated. In addition to this, when inventories reach a certain level, the system will, not only let the retailer know that it’s time to place another order, but it can also give vital information such as the most recent price of the item, the supplier, and the average of all the prices paid in the past. Through this feature, the retailer will be able to monitor expenditure and will be in a better position to negotiate with suppliers. In case summaries for the day, week, month or even year are required, the fairly accurate figures can easily be retrieved through the system. These features prove to be integral to a retailer as they no longer need to spend hours upon hours just to keep track of their supplies. It is important to note, however, that retailers should not rely solely on the capability of their POS system for inventory figures. Retailers should, from time to time, conduct manual inventories to personally see if the figures reflected on screen are accurate.

Retailers should select a POS system which allows them to plug in or view vital client information, such as client preferences, requests or advance orders on their POS screen. This way, the minute a new shipment of, say camera lenses arrive, the attendant can immediately ring the client who requested that specific item. With POS Systems that provide retailers with up-to-date records, the retail store can easily give product details and other data to clients who ring up to ask product availability and specifications.

Through these POS systems, retailers not only save valuable time, precious manpower and physical energy by integrating sales with inventory count, and further streamlining the inventorying procedure, they are also managing to give their customers a form or personalized service – a practice that is sure to retain old clients, and win over new ones.