Selecting point of sale, or POS, equipment is a criticaldecision for any small business owner. This is the gateway of financialinteraction between your business and its customers. POS equipment is thehardware and software that handles customer transactions and communicates themwith merchant account providers if needed. Without them it is impossible toprocess debit and credit transactions. In today's marketplace where fewerpeople than ever carry cash, it is an essential tool for any growing business.These systems include barcode scanners, pin pad entry points, signature stylus,credit card readers or swipers, keyboards, computers, printers, touch screendisplays, fingerprint IDs, and cash registers. A software component thatmanages user interface and hardware integration is another major factor in theequation.


Choosing specific point of sale components is not as simpleas it sounds. A thorough evaluation of your business structure is essential todeveloping a custom tailored POS system that can carry your business forward. Awireless system is great for mobile vendors or restaurants, while emphasis oncustomer display may make smoother transactions in a retail outlet. Like theautomobile industry, most POS equipment is sold through resellers rather thanthen manufacturers. Expect to pay between $2000 and $8000 for a high qualitycustom system fully with a service agreement. While used systems may be lessexpensive, you may have to install and service the system yourself. Softwarecosts could easily overrun any savings benefits of a used system. Price shouldnot be a major concern in your decision making process. A substandard setupmeans decreased efficiency, which could cost your business thousands per day inlost revenue. A malfunction at peak hours could run cashier lines out the door,some customers never to return.


POS equipment is divided into two major categories:Hospitality and Retail. Retail systems are less complex as most transactionsare done instantaneously. These systems may integrate peripherals such as weighscales and pole displays to keep the customer informed as items are scanned.Other features could include security features, such as fingerprint IDs forcashiers. Smooth interface and speedy communication with merchant services isthe goal of these systems. Management and organization is the emphasis in theHospitality sector. In a restaurant setting these systems need to be able torelay orders to a kitchen or bar, manage open accounts as new items areordered, and track server table responsibilities. Spend some time analyzingservice agreements. Will you receive regular software updates at no additionalcharges? Will you have to pay for hardware upgrades as your business grows?What is the reputation of the proposing vendor? You need to know if they aregoing to take care of you when you need it the most.


About the Author


JenniferLoganthan is the President and CEO of Stradafee Limited. Stradafee is anelectronic payments company as well as eCommerce and merchantaccount providers. For more information on &sec=article&uinfo=<%=server.URLEncode(1869)%>" target="_blank">merchant services pleasevisit &sec=article&uinfo=<%=server.URLEncode(1869)%>" target="_blank">www.stradafee.com.