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Point of Sale (POS) Terminals

A point of sale terminal is an essential input and output device for any point of sale system. You can think of a POS terminal like a computerized cash register. The purpose of a point of sale terminal is to process a customer's transaction and swipe the customer's credit card sending it thru a network for processing. Today's point of sale terminals often handle debit card transactions in addition to standard credit card transactions. These POS terminals also come equipped with a keypad for the customer to enter their pin code.

Anytime you wish to process credit card data, security is your main focus. Today's systems typically send data over a SSL (secure socket layer) which is an encrypted feed back to the merchant bank. This layer of security allows for real time credit card and debit card processing in a secure environment.

When a cashier or customer swipes their card thru a POS terminal, the credit card terminal checks the customer's credit card information. It then relays with the credit card company to remove the funds for the transaction from the customers account and places it in your merchant account. This entire process takes only a moment and is much more efficient than the old, manual way of processing credit card information. If you have a complete POS suite running your retail establishment, the customer's transaction will also be added to the back office server at this time as well, allowing you to keep track of incoming transactions and inventory management.

Most payment processors offer businesses a choice of renting or buying their POS terminals. The cost to purchase a POS terminal outright runs $1000 or more. To lease a terminal, it can cost your business anywhere for $20 to $100 per month, depending on the type of terminal. There are advantages and disadvantages to both leasing and purchasing. A well built POS terminal can last you 10 years or more and most come with warranties to cover any problems that may occur. In the long run, it may be more cost effective for you to purchase a POS terminal however the initial costs of a lease will be more affordable.

These days, there are also options for purchasing used and refurbished POS terminals. These rebuilt terminals will cost less than purchasing new and can still carry guarantees of their own. Before selecting any POS terminal, you should make sure that the hardware is compatible with your merchant processor and POS suite. Also, compare options for multiple networked POS terminals over traditional terminals. Networked POS systems allow for the use of a shared internet connection to process customer card data. Traditional terminals require a dedicated line for each terminal.

POS terminals are a major improvement over the cash registers of years past. You will be able to increase your efficiency and process transactions in real time in a secure environment. There are many purchasing options to fit every need and budget.