Payment processing is one of the most important tasks for any business. In present days, this task is often done with a POS system to ensure the systematicity and accuracy of transactions. Without a doubt, a POS system that accepts a variety of payment methods can make the checkout smoother. In this blog, we will discuss the top 5 payment methods that your POS should support.
Cash is the most obvious payment type that every store will accept. There are various benefits of accepting cash payments such as the clarity and timeliness of transactions. Moreover, with cash, both buyers and sellers don’t have to pay for overhead costs. For these reasons, this payment method is highly suitable for small businesses with little profit margin. This is because they cannot afford other fees, namely from credit cards.
On the other hand, cash payments can also come with several drawbacks. They can lead to higher risks of theft and inaccuracy in money count. Needless to say, thanks to their convenience and popularity, any POS should still accept cash, in addition to the following advanced options.
Credit/ Debit card
Consumer payment preferences have shifted dramatically towards the use of cards, with research showing that 77% of consumers prefer card payments. The two most popular types of cards are credit and debit. The benefits of using card payments are many, including greater accuracy and faster checkout processing. With card payments, the amount is processed electronically, eliminating the need for changes in case of odd price numbers.
Cashless payment also has many other advantages, including enabling customers to complete high-value transactions, which can boost sales for stores. This is why, in addition to cash, credit and debit cards should become essential payment methods on your POS system. By incorporating card payment functionality into your POS system, you can make checkouts faster and more efficient while simultaneously expanding the payment options for your customers. Ultimately, choosing an omnichannel POS solution (for example, ConnectPOS) that supports cashless payment options like credit and debit cards can be a game-changer for your business; it should help you to boost customer loyalty and drive sales growth.
As the shopping experience is moving to online places, digital wallets have become more widely used by retail customers. This is a form of contactless payment, where payments are transferred electronically via online banking or other third-party companies.
In present days, many eCommerce websites integrate built-in or third-party digital wallets to facilitate a smoother checkout process. At Shopee, one of the top eCommerce sites in Asia, customers can benefit a lot from using Shopee Pay, such as receiving special discounts. This example shows the great preference for digital wallets from eCommerce companies and the welcoming attitude of customers.
Moreover, this payment method for POS can also be used in a brick-and-mortar store. This method is highly recommended especially after the COVID-19 pandemic when social distancing limitations are still in place.
In cafes and restaurants, it is common for patrons to want to split the bill among themselves. Rather than conducting multiple transactions, owners can use split tenders to accept several payments with ease. By choosing a point-of-sale system that supports split tenders, the process to divide the bill is simple and can be completed with just a few clicks.
This function enables restaurant owners to accept payments from different individuals who may be paying with different methods, such as one person paying cash and another using a credit card. By incorporating split tenders into your POS system, it streamlines the payment process and leads to a more efficient customer-merchant interaction.
Store credits and gift cards
Implementing a reward points system in your POS system can be an excellent strategy to boost customer retention and loyalty. This payment type is popular among shoppers, as they can earn points from past purchases, promoting repeat behaviors. Loyalty rewards may not require customers to spend actual money but can still be used to purchase items or be redeemed for other products or services.
Incorporating store credits or gift cards into your POS system is an effective way to encourage customers to buy from your store continuously. While this type of payment may not be as popular as other methods, it is an essential aspect that can enhance the customer loyalty program of your store. Customers will benefit from ongoing rewards, and by providing a smoother customer experience, your store will build stronger relationships with your purchasers. This will increase positive overall experiences.
To maximize the potential of your store’s reward points system, ensure that your system supports gift cards, store credits, and other incentives that can strengthen your customer loyalty program. With this payment offered by your POS system like ConnectPOS, you can efficiently track transactions and analyze customer data trends, providing valuable insights that can help optimize your business decisions.
Above are the most important payment methods that your POS should support. Please remember that this list is not exhaustive. There are also many more payment types that you can include in the POS system, which depends on your needs. Lastly, if you are looking for a POS that supports various types of payment methods, ConnectPOS can be a good option. Contact us or start a 14-day free trial if you are interested!
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Quite an interesting read, Jacey! A point of sale (POS) is a location where a customer makes a payment for products or services. A POS transaction can take place online or in-person, and receipts can be printed or created electronically. Cloud-based POS solutions are growing more popular among merchants nowadays.