Setting up and conducting modern cashless point of sale (POS) transactions can be intimidating to business owners who are new to the idea. If you are one of the many business owners who are making the switch, there are a few terms, strategies, and concepts you can learn to help you feel confident instead of overwhelmed when setting up a cashless point of sale system. Learning how to use a point of sale system as a tool within your business will lead to greater success, sales, and customer satisfaction.
Terms to Know
If you’re new to cashless options for business transactions with a popular Point of Sale system provider like Shopify, (and we assume you are since you’re reading this article), it will be highly beneficial to simply learn some of the basic lingo. Like any other new thing you incorporate to your life, it may seem a little overwhelming at first. However, the terms are not difficult – just different. Take a few moments to familiarize yourself with the following terms:
- Backorder – When a customer order cannot be filled due to unavailability of the necessary inventory. One should remain aware of backorders when conducting purchases for the month.
- Chargeback – A process initiated by the customer’s bank that returns the customer’s finances. When a chargeback occurs, a reversal is made of charges that had been previously authorized. This can take place through a credit card or through a person’s bank account.
- CVV Code – The CVV is typically located on the backside of a credit card, preceded by the normal card number. CVV stands for card verification value. This code is a way to protect users from the dangers of credit fraud. The CVV is also known as the card security code, card verification value code, or verification code.
- EBT Card – This stands for Electronic Benefit Transfer. This type of card is utilized when customers want to take advantage of state or government benefits. Cashless point of sale systems are often used to conduct these transactions since no cash is used in the transaction.
- EDC – This stands for Electronic Draft Capture. It is incorporated in most POS systems and is a valuable tool that helps businesses save time, energy, and talent. EDC balances, settles, and authorizes transactions involving credit cards to create a more efficient point of sale experience.
- PCI – This stands for Payment Card Industry, a structured guideline designed with the intention of protecting card information from abuse and fraud.
- E-Commerce – Electronic commerce allows businesses or individuals to conduct transactions through the internet.
- Brick and mortar business – A brick and mortar business is a term that refers to traditional businesses in which customer interaction occurs in a physical space (i.e., not an online business). Grocery stores, bookstores, and banks are all examples of this type of business.
- POP – This stands for Point of Purchase, which is simply another term for point of sale. Point of purchase is a place where sales take place.
The Concept of Cashless Point of Sale Systems
There has been an obvious recent shift from cash payment to wireless payment in the realm of business transactions. Consumers seem far more comfortable paying with debit or credit than they do with cash; in fact, consumers spend far more with plastic than they do with green bills in hand. Society’s movement from cash to plastic is most likely intertwined with convenience. Consumers are able to pull out a single payment form with a great deal more ease than fumbling through a wallet or purse for bills and coins.
New point of sale technology allows consumers to pay businesses without using cash. Even small businesses now accept card payments thanks to technology that enables the use of tablet-connected card readers in the checkout process. Point of sale is defined as the part of a transaction in which customers pay merchants for items or services; typically, these POS transactions take place with the help of specialized technology (as mentioned above) so that cash is not necessary.
How Cashless Point of Sale Systems Benefit You
Cashless point of sale systems allow business owners to conduct transactions without being limited by what forms of payment are acceptable. They allow your customers to pay you when, how, and where they want to. When your customers feel convinced and satisfied, your customer base will gradually grow in size, which equates to more sales for you and more income for your business. In short, cashless options provided by a good point of sale system makes everyone happy.
The terms, strategies, and concepts outlined in this article may act as a springboard to help you make the dive into cashless point of sale systems as a means of accepting credit and debit transactions for your business. Keep in mind that the information listed here is a valuable resource on your journey to become skilled and knowledgeable concerning point of sale systems; we encourage you to further research the topic so that your confidence will increase as you learn to successfully integrate this tool into the mechanics of your small or large business.