A cloud-connected point of sale (POS) system makes selling easy for retailers and service-oriented businesses. The right POS can help a company boost sales, manage operations, and build a stronger customer base. However, problems may ensue if a system is chosen or installed incorrectly, or if employees don’t know how to use it. Here, business owners will learn about common point of sale mistakes and how they can prevent them.
Selecting the Wrong System
When owners are anxious to get up and running, they may select the first POS system they find without realizing the consequences of such a choice. It’s not the hardware that causes most problems; rather, it’s the technical support and merchant services provider behind the system. While an owner’s choice depends on the industry, they’re in, there are a few ways to simplify the decision-making process. By reading reviews, testing before buying, and selecting a reputable partner like BlueSnap, business owners can avoid losing money on early termination and processing fees.
Lacking a Plan B
Even if a business owner does their due diligence in choosing a point-of-sale system, it’s important for them to have an alternate way to accept payments in case of system failure. While most cloud-based systems have offline modes, which queue transactions during internet outages, it’s best to have a WIFI hotspot to use when a main connection fails. Depending on the company’s needs and sales volume, it may be a good idea to have a mobile payment application or virtual terminal ready to go. The more ways a company has to take customers’ payments, the better off it will be.
Merchant Services Agreement Violations
While most business owners follow the rules, some unwittingly violate their merchant services agreements. In most instances, sellers run afoul of the rules by exceeding their monthly processing limits or selling things that weren’t included in the original agreement. Some POS systems don’t have firm processing limits, which may be beneficial. However, it also means that it’s easier to go over the limit without knowing it.
Failing to Secure the System
Allowing a point-of-sale system to be breached is another mistake that’s common among small business owners. To prevent these mistakes, owners should regularly check and maintain their systems to ensure that they meet PCI-DSS standards. This includes regular antivirus software updates, WIFI network encryption, and training employees on secure payment acceptance.
Using Outdated Technology
Businesses make a big mistake when they don’t accept chip cards, but thankfully, that error is easily avoidable. If a company doesn’t accept chip cards, they’re financially liable for resulting fraud. When companies use EMV-compliant point of sale systems, they can easily buy and set up terminals that take chip cards.
Stay on the Right Path
Running a point-of-sale system requires effort and research on a business owner’s part. With some effort, time, and patience, however, business owners can strengthen their companies with a POS system. Today’s cloud-based systems cost less than those based on traditional software, and they can take a business to another level. By avoiding the common mistakes listed here, owners can boost revenue, avoid chargebacks and fraud, and work toward continued profitability.