Does Pos Equipment Determine Your Merchant Provider?

By Author: Hugh Springer
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There are many variables to consider when setting up a merchant account and finding the right POS system for your business. But before you can decide on a merchant provider or POS system, you first need to establish your business needs and figure out what options are available to you.

Business Considerations
Consider your main reason for wanting to be able to accept credit card payments from your clients. Is it to increase your volume of sales and turnover by making it easier and more convenient for your clients to make purchases? Is it for security purposes so you do not have to keep as much cash on the premises? Is it because you plan to start trading online and need a secure payment mechanism? Or is it because you want to streamline your invoicing and accounting system? Will the POS be stationed in one place or will it need to be mobile, as is the case in a restaurant? What industry are you in? Are there systems that are designed for your industry that you could benefit from? Looking into these questions will help you look for certain features in a POS system and merchant provider that match your needs. Each ...
... of these different types of set-ups has unique features that are tailored for specific functionalities.

What is a POS System?
The term POS is an abbreviation for Point of Sale. It refers to the system that is used to ring up and process a sale transaction. In days past, this was a cash register. Today, the systems are computerized and automated which has resulted in greater efficiency when processing transactions. Most modern POS systems in the retail sector are integrated with inventory and accounting systems. This means that when a product is rung up, both systems are automatically updated. For greater convenience, card processing systems have also been integrated into point of sale systems. In terms of credit card processing, stand alone card POS processing systems are also available. The POS system is essentially the front office system that allows you to accept credit card transactions.

How Does a Merchant Provider Work With the System?
In order to be able to accept and process credit card transactions, you also need to have a merchant account. This is set up through a merchant provider. The function of a merchant provider is to provide a secure platform for card processing and facilitate the flow of funds from the client's credit card account into your bank account. Like the POS system, merchant service providers are an essential part of processing credit card transactions. The difference is that merchant providers are the back end functionality of the system as opposed to the POS system which sits in your store front.

What is the Relationship Between POS systems and Merchant Providers?
POS systems are often included in the packages supplied by most merchant providers. Based on your industry and business requirements, merchant providers can make recommendations on the best POS system to use. This is where knowing your business needs helps facilitate the decision-making process. In general, the types of store front Point of Sale systems are fairly generic and the same machine can be used by several different merchant providers. This means if you have seen a POS system that you like and think will suit your business needs, you can then shop around with different merchant providers and see what packages they offer with that specific POS system. The main difference will be how they integrate the POS system with your merchant account and what functionalities and services you get.

If you have an online store, however, your point of sale system is more software-oriented and could be unique to your merchant provider. In this instance, the type of online Point of Sale system could very well determine your merchant provider. Some merchant providers specialize in online retail sales and their expertise could provide all the answers for your business.

You may have a physical store as well as a online store. In this case, you would look for a merchant provider that can set you up correctly to take online payments as well as payments at your physical storefront. Once again, it comes back to really knowing your business needs so that you can find the Point of Sale system and merchant provider best suited to your business. The merchant provider's accreditation and attention to security measures is another important consideration. It is no good having a state-of-the-art POS system if your back end does not store the transaction information securely. A reliable merchant provider will be able to provide you with security certificates and advise you on how to keep your POS system secure.
About Author:
At Card Processing Pros.com we provide merchant credit card processing services and debit card processing, literally setting up hundreds of clients per month to process card payments for storefront, Internet and phone/mail order-based businesses. We also offer services in electronic check and gift card processing. Visit online today.