Different Types of POS Systems

Different Types of POS Systems

   October 12, 2024       Next Level POS

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Point Of Sale Technology

Point of sale systems come in all shapes and sizes. Learn about some types of POS systems on the market. 

Are you in the retail, restaurant, or hotel industries?? If so, you absolutely need a point-of-sale system! It’s the MVP of your tech toolkit and keeps your daily operations smooth, from payments to inventory management.

Choosing between the different types of POS systems can be daunting, but fear not! This guide has you covered and will help you:

• Understand what point of sale systems are all about.
• Explore the different types of POS systems available.
• Learn how to compare and choose the best one for your business.
• Check out why Epos Now's all-in-one solution is your best bet!

Let’s get started!

What is a POS system?

A point of sale system, or POS system, is the central hub for all transactions in small businesses like retail shops, restaurants, and hotels. It's a combination of POS software and POS hardware that goes beyond basic cash register functions. Here’s a snapshot of what a POS system does:

• Transaction processing: It’s not just about tallying up sales. No, it handles the entire payment process from start to finish when customers make purchases.
• Inventory management: Keeps track of what you have in stock, what’s selling, and when you need to restock.
• Payment processing: Takes care of credit card transactions, cash payments, and sometimes even digital wallets.
• Business insights: Collects data on sales trends, customer preferences, and more to help you make informed decisions.
• Operational efficiency: Streamlines tasks like generating receipts, managing employee shifts, and handling returns or exchanges.

All-in-all, POS systems are essentially the backbone of smooth operations for businesses of all sizes.

Types of POS systems

Now that you've a better idea of what POS systems are, let's examine the different types of POS systems available.

Legacy POS systems

A legacy POS system, also called on-premises, countertop POS systems or traditional POS systems, operates differently from newer systems. The main distinction is that it stores data locally, meaning all transactions and information are saved on specific devices within your closed network. Here are some key points about legacy POS systems:

• Data storage: All data is saved on the device or network, limiting access to only those connected devices.
• Hardware: Typically uses proprietary hardware from the POS provider, requiring on-site installation and maintenance.
• Training: Requires extensive training for users due to its complexity, leading to longer onboarding times.
• Functionality: Can scan barcodes, process payments, calculate totals with taxes and discounts, and generate business reports.
• Internet independence: Works without an internet connection, ensuring operational continuity.
• Security: Offers robust data security since information stays within the closed system.

Multichannel POS systems

For businesses operating across multiple channels, such as physical stores, online platforms, and mobile apps, a multichannel POS system is essential. Here are the features:

• Omnichannel order processing: Seamlessly process orders from different channels, including in-store purchases, online orders, and mobile app transactions. This ensures a consistent and smooth customer experience regardless of the purchase channel.
• Centralized customer profiles: Maintain centralized customer profiles that capture data from all channels. This includes purchase history, preferences, loyalty program details, and communication preferences, enabling personalized interactions and targeted marketing campaigns.
• Cross-channel returns and exchanges: Facilitate hassle-free returns and exchanges across all channels, allowing customers to return online purchases in-store and vice versa, enhancing convenience and customer satisfaction.

Tablet POS systems

A tablet-based POS system, also known as a touchscreen or iPad POS system, is part of the modern wave of POS technology. Unlike legacy systems, these POS setups run on familiar tablet hardware, making training and onboarding a breeze. Key points about tablet POS systems include:

• Hardware: Utilizes tablets like iPads and Androids for a user-friendly experience.
• Training: Easier to train staff due to familiar technology.
• Convenience: Compact size makes it convenient for various business settings.
• Cloud-based: Often operates on cloud networks. There are a number of benefits of cloud POS including allowing remote management and updates.
• Self Setup: Usually comes with self-setup options, reducing the need for on-site installation.
• Maintenance: Self-maintenance features contribute to easy upkeep.
• Functionality: Offers a range of functions from scanning barcodes to processing payments.
• Inventory management: Includes features like low-stock alerts and inventory counting.
• Data collection: Collects customer data and provides insights for marketing and sales strategies.
• Integration: Easily integrates with other tech tools and platforms, including social media for marketing purposes.

In summary, tablet-based POS systems combine user-friendly hardware with advanced features, making them a popular choice for modern businesses seeking convenience and efficiency in their point-of-sale operations.

Mobile POS systems

A mobile POS system is a portable and modern solution where the point-of-sale software operates on mobile devices such as tablets or smartphones. Here's what you need to know about mobile POS systems:

• Portability: Mobile systems utilize sleek and portable hardware for on-the-go transactions.
• Customer service: Enables sales associates to assist customers anywhere in the store, checking inventory and making personalized recommendations.
• Line busting: A mobile POS system helps reduce queues and speed up checkout processes, ideal for busy periods and pop-up events.
• Card readers: Often includes built-in card readers for convenient payment processing.
• Functionality: Offers features like calculating totals, processing payments, and managing inventory.
• User-friendly: A mobile POS system provides familiar and easy-to-use hardware, making training and onboarding efficient.
• Barcode scanner: Some models come with built-in scanners, simplifying inventory management tasks.
• Inventory management: Includes inventory tracking and various fulfillment options such as shipping or in-store pickup.
• Integration: Easily integrates with other tools in your tech setup for streamlined operations.
• Analytics: Provides reporting and analytics capabilities to inform business decisions.

Mobile POS systems offer flexibility, convenience, and enhanced customer service, making them valuable assets for businesses looking to streamline their checkout processes and improve overall efficiency.

Cloud-based POS systems

A cloud-based POS system, like the Epos Now Complete Solution, stores data in the cloud, allowing access and changes from anywhere. Key points about cloud-based POS systems include:

• Cloud storage: Data is stored remotely, enabling access and modifications from any location.
• Flexibility: Allows for remote management and updates to business operations.
• Security considerations: Vulnerable to cyber threats compared to legacy systems, necessitating robust security measures.
• Internet dependence: Relies on an internet connection for data processing, which can lead to downtime during network outages. Some cloud-based POS systems like Epos Now do have an offline mode available, which can be quite handy given its otherwise internet-dependent nature. While it relies on an internet connection for data processing, having an offline mode helps mitigate potential downtime during network outages or disruptions.
• Hardware: Utilizes sleek and portable devices for day-to-day operations.
• Functionality: Performs tasks such as calculating totals, processing payments, and managing inventory.
• Integration: Easily integrates with existing tech tools, enhancing overall operational efficiency.
• Reporting and analytics: A cloud-based POS system provides detailed insights into sales, inventory, and customer behavior for informed decision-making.

In summary, while cloud-based POS systems offer convenience and accessibility, businesses must consider security measures and internet reliability to maximize their benefits.