Common POS System Mistakes and How To Avoid Them
Business owners globally rely on point-of-sale systems to streamline transactions and finalize sales. A POS (point-of-sale) system is a valuable asset that improves the organization while using the latest technology to make daily responsibilities more manageable.
Unfortunately, POS systems can carry a hefty workload with the number of transactions and processing it endures throughout a typical day of operation. Sometimes, terminals can fail, prompting you and your team to spring into action.
On the other hand, you can prevent POS system failures by reading and incorporating a few suggestions. That said, here are common POS system mistakes and how to avoid them.
Improper POS System Installation
You may believe that installing a POS system is straightforward, but in reality, it isn’t as cut-and-dry as it seems. It would be best to allow the vendor to install the terminal since there are networking cables and software settings that you may incorrectly install, sending your brain into information overload.
An improperly installed POS system can cause more glitches and disrupt daily operations, requiring additional support.
Not Securing Your POS System
Fraud is an unwelcomed concept in retail and other merchant industries. However, POS systems that fall victim to it are standard. Install security software and incorporate various precautions to reinforce the system and data security.
You can secure POS systems by encrypting your Wi-Fi network and installing secure passcodes for each terminal. You can also operate terminals outside of customer-accessible Wi-Fi networks and train employees on properly accepting credit card payments.
Investing in an Incompatible POS System
Often, as a last-minute purchase, businesses acquire POS systems incompatible with their merchant service provider and software applications.
Business owners will often purchase the terminal they like best without considering the possible ramifications of incompatible equipment. This may render the equipment useless, resulting in a wasted expense.
Choosing the Right POS System
When seeking the ideal POS terminal, you want an option that will fit into your company's objective and provide a personalized experience for you and your team.
Efficient systems can support success, offer integrated payment systems, sync with online and retail businesses, and handle inventory tasks.
The perfect system for your company may also store vendor information, facilitate stock organization, and provide consolidated reports on total sales.
Violating Merchant Account Agreements
Unfortunately, small business owners sometimes violate their merchant account agreement, even if it wasn’t their intention. A violation in a credit card processing provider’s contract may result in a temporary account freeze or permanent termination.
On the bright side, you can avoid violations by maintaining your monthly credit card processing limits and providing accurate transaction information.
You can also mitigate your risk of violating merchant account agreements by minimizing chargebacks.
Not Offering Chip Readers
Declining chip readers to support credit card payments is a significant POS mistake that could cost you more than you know. Fortunately, you can avoid the consequences by acquiring an EMV-compliant terminal so you can accept more than the standard magstripe card.
By purchasing an EMV-supported POS system, you can mitigate the risk of fraud and eliminates your financial liability and NFC payments.
Not Providing Employees With Adequate Training
New technology is foreign territory to workers and learning the ins and outs of a POS can be a challenge, depending on the type of system and industry.
To mitigate interruptions in transactions and avoid employee stress, it would help to provide your team with adequate training to familiarize themselves with the technology.
To enforce uniform practices on a widespread level, allow your team to take advantage of training opportunities so they master skills and reduce mistakes that could significantly cost your business.
Most importantly, testing POS systems before rolling out their usage is vital to team success. It allows you to test terminal operations in real time and detect faults that could hinder sales. If the point-of-sale system presents difficulty to management, expect it to raise concerns with the rest of the team as well.
Not Having a POS Integration Plan in Place
Integrating your point-of-sale system requires an IT resource to spearhead training and assessments because of its technical requirements. POS systems integrated with merchant credit card processing eliminate reliance on manual entry checkout procedures, saving time and eliminating human errors.
Not Having a Backup Plan
Unfortunately, technology fails, and standard operations can come to a screeching halt when it does. If this is the case for your business, it will help to have a backup plan to avoid interruptions in your point-of-sale system.
For instance, if you don’t integrate your POS system and it crashes, it can negatively impact your encompassing operations, leading to lost revenue and cash flow issues.
You can mitigate losses and support disaster recovery by having a backup plan such as a handwritten system or an alternative source for accepting payment.
Not Comparing POS Vendors
Familiarizing yourself with vendor choices before investing in a POS system is crucial when understanding the vendor's values and establishing trust. As a merchant, you’ll want to follow precautions to protect yourself from conducting business with questionable vendors.
Unknown sellers will often provide defective equipment to novice merchants to collect customer data, resulting in breaches. It would help to weigh your options and terminate business with scammers to protect your assets and customers.
Limiting POS Capabilities
Modern POS terminals revolutionize the standard checkout system by including cloud-based software to support innovative features like reporting and marketing. Conversely, business owners may neglect using advanced functions and only use the terminal for its initially designed purpose.
By not using your system to its fullest, you may be paying for capabilities you're not using, like email marketing, sales reports, and employee management.
Today’s point-of-sale systems make it easier for businesses to provide goods and services to their customers. Whether your industry focuses on retail, food service, or beauty, having a terminal and knowing common POS mistakes and how to avoid them can help you finalize more sales, manage your company, and generate more revenue.
Hilipro is the proud supplier of credit card terminal stands and other POS technology to make operations smoother for your business. For a complete inventory of our products, please visit our website!