The point of sale ( POS ) or purchase point ( POP ) is the time and place where the transaction retail is complete. At the point of sale, the merchant calculates the amount owed by the customer, indicating the amount, can prepare an invoice for the customer (which may be the cashier print), and indicate an option for the customer to make the payment. This is also the point at which a customer makes payments to merchants in return for goods or after service provision. Upon receipt of payment, merchants may issue receipts for transactions, which are usually printed but are increasingly omitted or sent electronically.
To calculate the amount owed by the customer, merchants can use various devices such as scales, barcode scanners, and cash registers. To make payments, payment terminals, touch screens, and other hardware and software options are available.
The selling point is often referred to as a service point because it is not just a point of sale but also a point of return or customer order. POS terminal software can also include features for additional functions, such as inventory management, CRM, finance, or warehousing.
Businesses are increasingly adopting POS systems, and one of the most obvious and interesting reasons is that POS systems do not require price tags. The selling price is related to the product code of an item when adding stock, so the cashier only needs to scan this code to process the sale. If there is a price change, this can also be easily done through the inventory window. Other benefits include the ability to apply different types of discounts, customer loyalty schemes, and more efficient stock control.
Video Point of sale
Terminology
Resellers and marketers will often refer to the area around the cash but as a purchasing point ( POP ) as they discuss it from a reseller's perspective. This is especially true when planning and designing areas and when considering marketing strategies and offers.
Some vendor point of sale refer to their POS system as a "retail management system" which is actually a more appropriate term considering that this software is no longer just about processing sales but equipped with many other capabilities such as inventory management, membership systems, supplier records, bookkeeping , issuance of purchase orders, quotes and stock transfers, hides the creation of barcode labels, sales reporting and in some cases a network of long-distance outlets or links, to name but a few.
However, it is the term POS system rather than the retail management system that is popular among end users and vendors.
The basic and fundamental definition of a POS System, is a system that allows processing and recording transactions between a company and its customers, when goods and/or services are purchased.
Maps Point of sale
History
Software before the 1990's
Early cash registers (ECR) electronically controlled with proprietary software and limited in functionality and communication capabilities. In August 1973, IBM released the IBM 3650 and 3660 store systems that, in essence, mainframe computers used as store controllers that can control up to 128 selling points of the IBM 3653/3663 register. This system is the first commercial use of client-server technology, peer-to-peer communication, local area network (LAN) simultaneous backup, and remote initialization. In mid-1974, it was installed at the Pathmark store in New Jersey and Dillard department store.
One of the first microprocessor-controlled cashier systems was built by William Brobeck and Associates in 1974, for the McDonald's Restaurant. It uses Intel 8008, a very early microprocessor (and a pioneer of the Intel 8088 processor used in the original IBM Personal Computer). Each station in the restaurant has its own device that displays all orders for customers - for example, [2] Vanilla Shakes, [1] Big Fries, [3] BigMac - uses numeric keys and buttons for each menu item. By pressing the [Bake] button, the second or third order can be done when the first transaction is in progress. When the customer is ready to pay, the [Total] button will calculate the invoice, including sales tax for most jurisdictions in the United States. This makes it accurate for McDonald's and is very convenient for servers and provides restaurant owners with a check on the amount that should be in the cash drawer. Up to eight devices connect to one of two connected computers so that printed reports, pricing, and taxes can be handled from any desired device by entering it into Manager Mode . In addition to memory correcting errors, accuracy is enhanced by having three copies of all important data with multiple numbers stored just as a multiple of 3. If one computer fails, the other can handle the whole store.
In 1986, Gene Mosher introduced the first point-of-sale graphics software featuring a touch-screen interface under the ViewTouch trademark on a 16-bit Atari 520ST color computer. It displays a widget-driven color touch screen interface that allows configuration of widgets that represent menu items without low-level programming. ViewTouch point of sale software was first demonstrated in public in Fall Comdex, 1986, in Las Vegas Nevada to many people who visited the Atari Computer booth. This is the first commercially available POS system with a widget-based color-based touchscreen interface installed in multiple US and Canadian restaurants.
In 1986, IBM introduced 468x POS equipment based on Digital Research's Concurrent DOS 286 and FlexOS 1.xx, multi-task multi-time modular multi-tasking operating system.
Modern software (post-1990)
Various POS applications have been developed on platforms such as Windows and Unix. The availability of local processing power, local data storage, networking, and graphical user interfaces make it possible to develop flexible and highly functional POS systems. The cost of such a system also decreases, since all components can now be purchased off-shelf.
In 1993, IBM adopted FlexOS 2.32 as the basis of their IBM 4690 OS in their 469x POS terminal series. It was developed until 2014 when it was sold to Toshiba, which continues to support it until at least 2017.
As far as computers are concerned, off-the-shelf versions are usually newer and therefore stronger than proprietary POS terminals. Custom modifications are added as needed. Other products, such as touch-screen tablets and laptops, are available on the market, and more portable than traditional POS terminals. The only advantage of the latter is that they are usually built to withstand rough handling and spills; benefits for food & amp; business drinks.
Key requirements to be met by modern POS systems include high and consistent operating speed, reliability, ease of use, remote support, low cost, and rich functionality. Resellers can reasonably expect to acquire such systems (including hardware) for approximately $ 4000 US (per 2009) per line of payment.
Reliability does not depend entirely on developers but sometimes on compatibility between database and OS version. For example, the widely used MS Access database system has compatibility issues when the Windows XP machine is updated to a newer Windows OS. Microsoft soon offered a solution. Some businesses are severely disrupted in the process, and many are downgraded to Windows XP for quick resolution. Other companies are using community support, for a registry tweak solution has been found for this.
The POS system is one of the most complex software systems available because of the features required by different end users. Many POS systems are software that includes sales, inventory, stock counting, vendor ordering, customer loyalty, and reporting modules. Sometimes ordering purchases, stock transfer, quotation, barcode making, bookkeeping or even accounting skills are included. Furthermore, each of these modules is intertwined if they want to serve their practical purpose and maximize their usefulness.
For example, the sales window is immediately updated on new member entries through the membership window due to this association. Similarly, when a sale transaction is made, every purchase by a member is recorded in the membership window to report providing information such as the type of payment, purchased goods, date of purchase and accumulated points. Comprehensive analysis conducted by POS machines may need to process some quality about one product, such as selling price, balance, average cost, quantity sold, description and department. Very complex programming involved (and possibly enough computer resources) to produce extensive analysis.
The POS system is designed not only to serve the retail, wholesale and hospitality industries as historically it is the case. Currently POS systems are also used in property and property rental, equipment repair shops, health care management, ticket offices such as cinemas and sports facilities and many other operations where capabilities as required: processing monetary transactions, allocation and scheduling facilities, keeping records and schedule services provided to customers, tracking of goods and processes (repair or creation), invoices and tracking of outstanding debt and payments.
Different customers have different expectations in every trade. Its own reporting function is subject to so many requests, especially from those in the retail/wholesale industry. To cite specific requirements, some business goods may include perishables and therefore inventory systems should be able to encourage admins and cashiers on outdated or outdated products. Some retail businesses need a system to store credit for their customers, credits that can be used later to pay for the goods. Some companies even expect POS systems to behave like full inventory management systems, including the ability to provide even FIFO (First In First Out) and LIFO (Last In First Out), report their merchandise for accounting and tax purposes.
In the hospitality industry, the ability of POS systems can also differ significantly. For example, while the restaurant usually cares about how the window sales function, whether it has functions like to create button items, for various discounts, to add service fees, to hold receipts, to queues, to table services as well as for takeaways, merging and separation receipt, this capability may not be enough for a spa or slimming center that will require additional scheduling windows with a record of customer presence history and their specific requirements.
It can be said that POS systems can be created to serve different things to different end users depending on their unique business processes. Often, off-the-shelf POS systems are inadequate for customers; some customization is required, and this is why the POS system can be very complex. The complexity of a mature POS system extends even to a remote network or an interlink between a remote store and a headquarters so updating both is possible. Some POS systems even offer web-based ordering links to their sales windows. Even when local networks are only necessary (as in the case of supermarkets with high traffic), there are always challenges for developers to retain most if not all of their POS stations run. It places high demand not only on coding software but also designing an entire system that includes how individual stations and networks work together, and special considerations for performance capabilities and database usage. Due to such intricacy, bugs and errors found in POS systems are common.
With regard to databases, POS systems are very demanding of their performance because many submissions and data retrieval - necessary for correct sequence of receipt numbers, checking discounts, membership, subtotal counting, etc. - just to process a single sale of transactions. The proximity required of the system in the sales window as observed at the cashier's counter at the supermarket also can not be compromised. This puts a lot of pressure on individual enterprise databases if there are only a few tens of thousands of sales records in the database. The company's Ms SQL database, for example, has been known to freeze (including OS) completely for several minutes under such conditions that indicates a "Timeout Expired" error message. Even lighter databases like Ms Access will slow down crawling over time if the bloated databases are not predicted and managed by the system automatically. Therefore, the need for extensive testing, debugging and improvisation of solutions to precede database failure before commercialization further complicates the development.
The accuracy of the POS system is severe, given that monetary transactions are involved continuously not only through the sales window but also in the backend through the reception and input of goods into the inventory. The required calculations are not always easy. There may be many discounts and offers unique to a particular product, and the POS machine must quickly process the differences and effects on the price. There is a lot of complexity in programming such operations, especially when no errors in calculations are allowed.
Other requirements include that the system must have functionality for membership discounts and points/usage accumulation, promotional quantity and discounts, mix and match offerings, rounding off of cash, invoice/delivery-order issuance with tremendous amounts. This should allow the user to customize the inventory of each product based on the physical count, tracking the ends of perishable items, changing prices, providing audit trail when modified inventory records are performed, multi-functional outlet, stock control from HQ, doubling as invoice system, name.
It is clear that the POS system is a term that implies a wide range of capabilities depending on end-user requirements. POS system review websites can not be expected to cover most let alone all features; In fact, unless there are developers themselves, it is unrealistic to expect the reviewer to know all the NOS bolts and bolts. For example, a POS system might work smoothly on the test database during review but not when the database grows significantly in size for months of use. And this is just one of the many important functional issues hidden from the POS system. GOODS
Standardize hardware interface (post-1980)
Vendors and retailers work to standardize the development of computerized POS systems and simplify interconnection POS devices. The two initiatives are OPOS and JavaPOS, both in accordance with the UnifiedPOS standard led by The National Retail Foundation.
OPOS (OLE for POS) is the first standard adopted and created by Microsoft, NCR Corporation, Epson and Fujitsu-ICL. OPOS is a COM-based interface that is compatible with all programming languages ​​that COM supports for Microsoft Windows. OPOS was first released in 1996. JavaPOS was developed by Sun Microsystems, IBM, and NCR Corporation in 1997 and was first released in 1999. JavaPOS is for Java what OPOS is for Windows, and thus a portion large independent platform.
There are several ways of communication that POS systems use to control peripherals such as:
- Logic Control \ BemaTech
- Epson Esc/POS
- UTC Standard
- Enhanced UTC
- AEDEX
- ICD 2002
- Ultimate
- CD 5220
- DSP-800
- ADM 787/788
- HP
There are also almost as many proprietary protocols as there are companies that make POS peripherals. Most POS peripherals, such as displays and printers, support some of these command protocols to work with different brands of POS terminals and computers.
Design user interface
The sales window design is the most important for the user. These user interfaces are very important when compared to those in other software packages such as word editors or spreadsheet programs where the speed of navigation is not so important for business performance.
For businesses in prime locations where real estate has a premium, it can be a common thing to see the customer queue. The sooner the sale is finished the shorter the queue and hence the more space available in the store for customers to shop and employees to do their work. High traffic operations such as shopping outlets and cafes need to process sales quickly at the sales counter so that the UI flow is often designed with little popups or other annoyances to ensure the operator is not interrupted and transactions can be processed as quickly as possible.
While improving ergonomics is possible, a clean and fast-paced look can sacrifice the functionality that end users often like discounts, access to commissioned screens, membership schemes and loyalty can involve different views. POS function to ensure the point of sale screen only contains what is required by a cashier to serve customers.
The advent of cloud computing has spawned the possibility of a POS system to be used as software as a service, which can be accessed directly from the Internet using any internet browser. Using previous advances in communication protocols for POS hardware controls, cloud-based POS systems are independent of platforms and operating system constraints. Cloud-based POS systems are also built to be compatible with various POS hardware and sometimes tablets such as Apple's IPad. Thus, cloud-based POS also helps expand POS systems to mobile devices, such as tablet computers or smartphones. The device can also act as a barcode reader using the built-in camera and as a payment terminal using internal NFC technology or an external payment card reader. A number of POS companies build their software specifically to be cloud-based. Other businesses that launched pre-year 2000 have tailored their software to emerging technologies.
The cloud-based POS system differs from traditional POS mainly because user data, including sales and inventory, is not stored locally but on a remote server. The POS system is also not run locally, so no installation is required.
Depending on POS vendors and contract terms, compared to traditional local POS installations, software is more likely to be constantly updated by developers with more useful features and better performance in terms of computer resources on remote servers and in case of more bugs and errors low.
Another advantage of Cloud-based POS is instant data centralization (especially important for chain stores), the ability to access data from anywhere there is an internet connection, and lower initial costs.
Cloud based POS requires an internet connection. For this reason, it is important to use a device that has 3G capabilities on its own should the main internet device die. In addition to being significantly cheaper than traditional point-of-sale systems, the real strength of the cloud-based sales system is that there are developers around the world who create software applications for cloud-based POS. Cloud-based POS systems are often described as evidence in the future because new applications are constantly conceived and built.
A number of cloud-based POS systems emerged in places less than a decade or even half a decade ago. This system is typically designed for restaurants, small and medium retail operations with a fairly simple sales process as can be extracted from the POS system review site. It seems from such software reviews, enterprise-level cloud-based POS systems are currently lacking in the market. The "firm rate" here means that inventory must be able to handle a large number of records, as required by grocery stores and supermarkets. It can also mean that systems - software and cloud servers - should be capable of generating reports such as sales analysis of inventory for single and multiple outlets that are interconnected for administration by business operations headquarters.
POS vendors from cloud-based systems should also have a strong contingency plan for their remote server resolutions as represented by failover server support. However, sometimes even major data centers can fail completely, such as fires. On-site installations are therefore sometimes seen simultaneously with cloud-based implementations to precede such incidents, especially for businesses with very high traffic. Onsite installations however may not have the most up-to-date inventory and membership information.
For such a possibility, a more innovative approach with a very complicated approach for developers is to trim the version of the POS system installed on the checkout computer at the outlet. Every day, the latest supplies and membership information from the remote server are automatically updated to the local database. So if the remote server fails, the cashier can switch to the local sales window without disrupting the sale. When the remote server is restored and the cashier switches to the cloud system, the locally processed sales record is then automatically submitted to the remote system, thus maintaining the integrity of the remote database.
Although cloud-based POS systems save on end-user startup costs and technical challenges in maintaining on-site installations, there is a risk that cloud-based vendors shutting down may result in faster service termination for the end. -user compared to the case of a full local POS system where it can still run without a vendor.
Another consideration is that cloud-based POS systems actually present business data to service providers - hosting service companies and POS vendors who have access to applications and databases. The importance of securing critical business information such as supplier names, best-selling items, customer relationship processes can not be underestimated given that sometimes some key success factors or trade secrets of a business are actually accessible via a POS system. This security and privacy issue is an ongoing issue in cloud computing.
src: www.saloniris.com
Retail industry
The retail industry is one of the dominant users of POS terminals.
The retail point selling system typically includes a cash register (which currently consists of computers, monitors, cash drawers, receipt printers, customer screens and barcode scanners) and most retail POS systems also include debit/credit card readers. It can also include conveyor belts, weight scales, integrated credit card processing systems, signature catcher devices, and customer pin pad devices. While the system may include a keyboard and mouse, more and more POS monitors use touch-screen technology for ease of use, and computers built into the monitor's chassis for what is called a single unit. The All-in-one POS Unit frees counter space for resellers. POS system software can usually handle various customer-based functions such as sales, returns, exchanges, layaways, gift cards, gift registrars, customer loyalty programs, promotions, discounts, and more. The POS software can also enable functions such as pre-planned promotional sales, manufacturer voucher validation, foreign currency handling, and certain types of payments.
POS units handle sales to consumers but only one part of the overall POS system used in the retail business. The "Back-office" computer usually handles other functions of the POS system such as inventory control, purchasing, receiving and transferring products to and from other locations. Other typical functions of a POS system are: storing sales information to enable customer returns, reporting objectives, sales trends and cost/price/profit analyzes. Customer information can be stored for receivables management, marketing objectives and specific purchase analysis. Many retail POS systems include accounting interfaces that "feed" sales and cost of goods information for independent accounting applications.
The double point sales system used by major retailers such as supermarkets and department stores have databases and software architectures that are far more demanding than a single station seen in small retail outlets. A supermarket with high traffic is not capable of systemic failure, then every point of the sales station should not only be very strong both in terms of software, databases and hardware specifications but also designed in such a way as to prevent causing systemic failure - as can occur through the use of one central database for operations.
At the same time updating between multiple stations and backend administration computers should be able to be efficiently done, so on the one hand either at the beginning of the day or at any time each station will have the latest inventory to process all the items for sale, while on the other hand at the end of the day the computer backend administration can be updated in terms of all sales records.
This is even more complicated when there is a membership system that requires real-time bidirectional updates about membership points between sales stations and backend administration computers.
Retail operations such as hardware stores (timber outlets), electronics stores and so-called multifaceted superstorees need special additional features compared to other stores. The POS software in this case handles custom orders, purchase orders, repair orders, service programs and rentals as well as a typical point selling function. Hard hardware is required for point of sale systems used in external environments. Wireless devices, battery-powered devices, all-in-one units, and internet-ready machines are typical in this industry.
Recently a new app has been introduced, enabling POS transactions to be made using phones and tablets. According to a recent study, mobile phone POS terminals (mPOS) are expected to replace contemporary payment techniques due to various features including mobility, low cost upfront investment, and better user experience. The convenience of doing long-distance financial transactions is expected to increase demand from small and medium enterprises for mPOS.
In the mid-2000s, the visually impaired community in the United States was involved in structured negotiations to ensure that the retail point of sale devices had tactile buttons. Without a key that can be felt, the blind can not independently enter a PIN or him. In the mid-2000s retailers began using "flat screens" or "signature catcher" devices that obliterate keypads keys. The blind are forced to share their secret PIN with the store clerks to use debit cards and other PIN-based cards. The blind community reached an agreement with Walmart, Target, CVS and eight other retailers who needed a real key so that the blind could use the device.
Physical configuration
The early stores usually store items behind the counter. The staff will take the goods to the customer to prevent the chance of theft and the sale will be done at the same counter. Supermarkets like Piggly Wiggly, starting in 1916, allow customers to take their own goods and pass the point of sale on the way to the exit. Many stores have a number of cash registers for payment, possibly now including self-payments. This requires customers to guess which line will move the fastest, if they want to minimize their waiting time; they are often frustrated to be wrong or stuck behind other customers who encounter problems or that take a long time to check it out. Some stores use single, longer but faster moving paths, serviced by multiple registers, resulting in the same average waiting time, but reduce frustration and variance in person-to-person waiting times. Regardless of the configuration, the cashier line usually passes an impulse purchase item to attract the attention of an inactive customer.
src: www.poshawaii.com
Hotel industry
The hotel's point of sale system is a computerized system that incorporates registers, computers and peripheral equipment, usually on computer networks for use in restaurants, hair salons or hotels. Like other point of sale systems, the system tracks sales, labor and payroll, and can produce records used in accounting and bookkeeping. They can be accessed remotely by the offices of restaurant companies, problem solvers and other authorities.
The point of sale system has revolutionized the restaurant industry, particularly in the fast food sector. In the latest technology, registers are computers, sometimes with touch screens. The register is connected to the server, often referred to as "store controller" or "central control unit". Printers and monitors are also found on the network. In addition, the remote server can connect to the store network and monitor sales and other store data.
A typical restaurant POS software can create and print guest checks, print orders to the kitchen and bar to prepare, process credit cards and other payment cards, and run reports. In addition, some systems implement a wireless pager and signature electronic signature devices.
In the fast-food industry, displays may be on the front counter, or configured for drive-through or walk-through cashiering and order taking. The front counter registers allow taking and serving orders at the same terminal, while the drive-through registers allow orders to be picked up on one or more drive-through windows, to be checked and served elsewhere. In addition to registers, drive-through and kitchen displays are used to view orders. Once the order appears they can be removed or recalled by the touch interface or with a bump bar. The drive-through system is often enhanced by the use of a wireless interconnect drive-through (or headset). The efficiency of the system has decreased service time and improved the efficiency of orders.
Another innovation in technology for the restaurant industry is wireless POS. Many high-volume restaurants use wireless handheld POS to collect orders sent to the server. The server sends the necessary information to the kitchen in real time. The wireless system consists of a microphone and a drive-through speaker (often one speaker will serve both purposes), which is connected to the "base station" or "center module." This, in turn, will be broadcast to the headset. A headset can be an all-in-one headset or connected to a belt package.
At the hotel, POS software allows for the transfer of dining costs from the dining room to guest rooms with one or two buttons. May also need to be integrated with property management software.
Newer and more sophisticated systems are getting away from the central file system "central file server" and going to the so-called "cluster database". This removes system terminations or anything that can be associated with a back office file server. This technology allows 100% of the information not only stored, but also withdrawn from the local terminal, thus eliminating the need to rely on separate servers for the system to operate.
The popular POS Tablet system for retail solutions is now available for the restaurant industry. Initially the system was not sophisticated and many early systems did not support remote printers in the kitchen. The tablet system is currently used in all types of restaurants including service desk operations. Most tablet systems upload all information to the Internet so managers and owners can view reports from anywhere with passwords and Internet connections. Smartphone Internet access has made warnings and reports from POS very accessible. Tablets have helped create Mobile POS systems, and POS Mobile apps also include payments, loyalty, online ordering, table-side reservations by staff and table-based bookings by customers. Regarding the payment, mobile POS can accept all types of payment methods from contactless cards, cards equipped with EMV chips, and NFC enabled mobile cards. Mobile POS (AKA mPOS) is growing rapidly with new developers entering the market almost daily.
With the growing number of cheap touch screen tablet computers, more and more restaurants have implemented their own bookings through POS tablets that are permanently placed on each table. Customers can browse the menu on the tablet and place their order which is then sent to the kitchen. Most of the restaurants that have an iPad self-order menu include photos of the dishes so that guests can easily choose what they want to order. This apparently improves service and saves manpower on the part of the restaurant. However this depends on how smart the system has been programmed.
For example, some self-service systems that do not require staff assistance may not recognize the next sequence of the same customers on the table. As a result, customers are still waiting and wondering why both food and beverage orders are not being served.
Another example of how smart the system is, is whether an order that has been placed but not yet processed by the kitchen can be modified by the customer via a tablet POS. For unprocessed orders, customers must be given the option to take their order easily and modify it on tablet POS. But when the order is being processed, this function will then automatically be disabled.
Self-service systems are not always completely free from intervention by staff and for some good reasons. For example, some restaurants require that the items selected by the customer are attended and can only be placed by waiters who have the passwords required to do so. This prevents fake orders - as can be entered by children who play - and subsequent disputes on goods ordered. If alcoholic drinks are ordered, it is also necessary for the waiter to verify the age of the customer first before sending the order.
Technical specifications for implementing an ordering system themselves are more demanding than POS stations controlled by a single cashier. On the software and hardware side of each tablet on the customer's table should be connected to the cashier's POS station and kitchen computer so that both are kept updated on the placed order. The common databases serving this network should also be able to serve many users simultaneously - cashiers, customers, kitchens and even bar drinks.
Therefore it should be noted by developers that some of the popular databases used by Ms Access may have specifications that can be used by multiple concurrent users. But under the pressure of the POS system, they can fail miserably resulting in constant errors and data corruption.
POS systems are often designed for various clients, and can be programmed by end users according to their needs. Some large clients write their own specifications for vendors to implement. In some cases, POS systems are sold and supported by third-party distributors, while in other cases sold and supported directly by vendors.
The selection of a restaurant's POS system is essential for daily restaurant operations and is a major investment that restaurant management and staff have to live with over the years. The restaurant's POS system interacts with all phases of restaurant operations and with everyone involved with the restaurant including guests, suppliers, employees, managers, and owners. Selection of a restaurant's POS system is a complex process that must be done by restaurant owners and not delegated to employees. The purchase process can be summarized into three steps: Design, Compare, and Negotiate. The Design step requires research to determine the restaurant's POS feature required for restaurant operations. With this information, restaurant owners or managers can compare restaurant POS solutions to determine which POS systems meet their requirements. The final step is Negotiate pricing, terms of payment, including training, initial warranty and ongoing support costs.
src: www.stirling-payments.com
Forensic accounting
The POS system records sales for business and tax purposes. Illegal software dubbed "zappers" can be used on POS devices to falsify this record with a view to avoiding tax payments.
In some countries, legislation is being introduced to make the cashier system safer. For example, the French treasury is estimated to fail to collect about EUR14 billion of VAT revenue annually. The 2016 Financial Bill is intended to address some of these losses by requiring taxpayers to operate on a "secure system". Therefore, from 1 January 2018, all retail businesses in France are required to record customer payments using certified secure accounting software or cashier systems.
An authorized cash register system shall provide (i) unlimited, (ii) security and (iii) storage and archiving of data. All businesses required to comply must obtain a certificate from the cash register system provider stating that the system meets these requirements. This is because VAT taxpayers may need to provide a certificate to the tax authorities indicating that their cash management system meets the new requirements.
If a business can not provide this certificate to the tax authorities, they can be fined. And, if the tax authorities can demonstrate the use of fraudulent systems, both businesses and software providers may face tax penalties, fines, and criminal penalties. Certification can be obtained either from: a body accredited by the French Accreditation Committee (ComitÃÆ'Â © franÃÆ'§ais d'accrÃÆ' Â © ditation or COFRAC) or the cashier system software provider.
src: i.ytimg.com
Security
Despite the more sophisticated technology of the POS system than with a simple cashier, the POS system is still vulnerable to employee theft through the sales window. A dishonest cashier at a retail outlet can collude with a friend who pretends to be another customer. During checkout, the cashier can bypass the scanning of certain items or enter a lower quantity for some goods so that it is profitable so that the "free" goods.
The ability of the POS system to cancel the receipt of closed sales for the purpose of a refund without the need for a password from the official supervisor is also a security hole. Even the function of issuing a receipt with a negative amount that can be useful in certain circumstances, can be utilized by the cashier to easily raise money from the cash drawer.
To prevent the employee's theft, it is essential for the POS system to provide an admin window for the boss or administrator to create and check daily sales receipts lists, especially with regard to the frequency of canceled receipts before completion, receipts returned and negative receipts. This is one effective way to alert the company to suspicious activity - such as the high number of sales canceled by a certain cashier - that may occur and take monitoring action.
To further prevent employee theft, a sales counter must also be equipped with a closed-circuit television camera directed to the POS system to monitor and record all activities.
On the backend, prices and other changes such as discounts for inventory items through the administration module must also be secured with a password only given to trusted administrators. Any changes made should also be recorded and can be retrieved for review.
Sales and inventory records are very important to businesses because they provide very useful information to the company in terms of customer preferences, customer membership details, what are the best-selling products, who the vendors are and what the margins are from them, the total revenue and monthly costs of the company, just to name a few.
It is therefore important that reports about these things generated in the administrative backend are limited only to trusted personnel. The database from which this report should be generated must also be secured through passwords or through encryption of data stored in the database thus preventing it from being copied or altered.
In spite of all of these precautions and more, the POS system can never be completely secure from internal abuse if clever but dishonest employees know how to take advantage of many of their useful abilities.
News reports about hacking the POS system show that hackers are more interested in stealing credit card information than others. The ease and advantages offered by the POS system's ability to integrate credit card processing have the downside. In 2011, hackers were able to steal credit card data from 80,000 customers because of the security standards and POS configuration for PCI Compliance - which governs the security of credit card and debit card payment systems - "directly and overtly ignored" by the Subway franchisee.
In June 2016, several hundred Wendy fast food restaurants had their POS systems hacked by illegally installed malware. The report goes on to say that "the number of franchised restaurants affected by cybersecurity attacks is now estimated to be much higher than the 300 restaurants already involved" and that "hackers commit hundreds of thousands of fraudulent purchases on credit and debit cards issued by various financial institutions after breaking Wendy's computer system late last year ".
Again, this exploitation by hackers can only be possible because payment cards are processed via a POS system that allows malware to intercept data cards during processing or steal and send unencrypted card data stored in the system database.
In April 2017, security researchers identified a critical vulnerability in point of sale systems developed by SAP and Oracle and commented, "The POS system is plagued by vulnerabilities, and incidents occur because their security flaws are under the spotlight." If successfully exploited, this vulnerability provides the actor with access to any legitimate functionality of the system, such as changing the price, starting and terminating the terminal remotely. To illustrate the attack vectors, the researchers used examples of POS hacking to convert MacBook prices to $ 1. Security issues reported to vendors, and patches released shortly after notification. Oracle confirms security bugs affecting more than 300,000 Oracle POS Systems
In some countries, credit and debit cards are only processed through payment terminals. So one can see quite a lot of such terminals for different cards littering the sales counter. However, this inconvenience is offset by the fact that credit and debit card data are much less vulnerable to hackers, unlike when payment cards are processed through a POS system where security depends on actions taken by end users and developers.
With the launch of mobile payments in particular Android Pay and Apple Pay in 2015, it is expected that due to its greater convenience coupled with good security features, this will eventually surpass other types of payment services - including the use of payment terminals. However, for mobile payments to become truly mainstream, mobile devices like NFC-enabled smartphones must first become universal. This will be a matter of a few years from the time of this writing (2017) as more and more new smartphone models are expected to be NFC-enabled for that purpose. For example, iPhone 6 fully supports NFC for mobile payments while iPhone 5 and older models do not. The above disaster risk risks connected with processing the use of payment cards via the POS system will then be greatly reduced.
src: wayne.com
See also
- EFTPOS
- ISO 8583
- JavaPOS
- Category of company of sale
- Place of display sales
- Point of Sale Malware
- Payment terminal
- Just payment
- Standard Interchange Language
- UnifiedPOS
- Back-office Software
- Windows XP, a widely used operating system on POS machines
src: i.ytimg.com
References
src: marinerbusinesssolutions.com
External links
- Place of sale in Curlie (based on DMOZ)
- Renewal of the Definition and Example of Harbortouch POS System Type
Source of the article : Wikipedia
The advent of cloud computing has spawned the possibility of a POS system to be used as software as a service, which can be accessed directly from the Internet using any internet browser. Using previous advances in communication protocols for POS hardware controls, cloud-based POS systems are independent of platforms and operating system constraints. Cloud-based POS systems are also built to be compatible with various POS hardware and sometimes tablets such as Apple's IPad. Thus, cloud-based POS also helps expand POS systems to mobile devices, such as tablet computers or smartphones. The device can also act as a barcode reader using the built-in camera and as a payment terminal using internal NFC technology or an external payment card reader. A number of POS companies build their software specifically to be cloud-based. Other businesses that launched pre-year 2000 have tailored their software to emerging technologies.
The cloud-based POS system differs from traditional POS mainly because user data, including sales and inventory, is not stored locally but on a remote server. The POS system is also not run locally, so no installation is required.
Depending on POS vendors and contract terms, compared to traditional local POS installations, software is more likely to be constantly updated by developers with more useful features and better performance in terms of computer resources on remote servers and in case of more bugs and errors low.
Another advantage of Cloud-based POS is instant data centralization (especially important for chain stores), the ability to access data from anywhere there is an internet connection, and lower initial costs.
Cloud based POS requires an internet connection. For this reason, it is important to use a device that has 3G capabilities on its own should the main internet device die. In addition to being significantly cheaper than traditional point-of-sale systems, the real strength of the cloud-based sales system is that there are developers around the world who create software applications for cloud-based POS. Cloud-based POS systems are often described as evidence in the future because new applications are constantly conceived and built.
A number of cloud-based POS systems emerged in places less than a decade or even half a decade ago. This system is typically designed for restaurants, small and medium retail operations with a fairly simple sales process as can be extracted from the POS system review site. It seems from such software reviews, enterprise-level cloud-based POS systems are currently lacking in the market. The "firm rate" here means that inventory must be able to handle a large number of records, as required by grocery stores and supermarkets. It can also mean that systems - software and cloud servers - should be capable of generating reports such as sales analysis of inventory for single and multiple outlets that are interconnected for administration by business operations headquarters.
POS vendors from cloud-based systems should also have a strong contingency plan for their remote server resolutions as represented by failover server support. However, sometimes even major data centers can fail completely, such as fires. On-site installations are therefore sometimes seen simultaneously with cloud-based implementations to precede such incidents, especially for businesses with very high traffic. Onsite installations however may not have the most up-to-date inventory and membership information.
For such a possibility, a more innovative approach with a very complicated approach for developers is to trim the version of the POS system installed on the checkout computer at the outlet. Every day, the latest supplies and membership information from the remote server are automatically updated to the local database. So if the remote server fails, the cashier can switch to the local sales window without disrupting the sale. When the remote server is restored and the cashier switches to the cloud system, the locally processed sales record is then automatically submitted to the remote system, thus maintaining the integrity of the remote database.
Although cloud-based POS systems save on end-user startup costs and technical challenges in maintaining on-site installations, there is a risk that cloud-based vendors shutting down may result in faster service termination for the end. -user compared to the case of a full local POS system where it can still run without a vendor.
Another consideration is that cloud-based POS systems actually present business data to service providers - hosting service companies and POS vendors who have access to applications and databases. The importance of securing critical business information such as supplier names, best-selling items, customer relationship processes can not be underestimated given that sometimes some key success factors or trade secrets of a business are actually accessible via a POS system. This security and privacy issue is an ongoing issue in cloud computing.
Retail industry
The retail industry is one of the dominant users of POS terminals.
The retail point selling system typically includes a cash register (which currently consists of computers, monitors, cash drawers, receipt printers, customer screens and barcode scanners) and most retail POS systems also include debit/credit card readers. It can also include conveyor belts, weight scales, integrated credit card processing systems, signature catcher devices, and customer pin pad devices. While the system may include a keyboard and mouse, more and more POS monitors use touch-screen technology for ease of use, and computers built into the monitor's chassis for what is called a single unit. The All-in-one POS Unit frees counter space for resellers. POS system software can usually handle various customer-based functions such as sales, returns, exchanges, layaways, gift cards, gift registrars, customer loyalty programs, promotions, discounts, and more. The POS software can also enable functions such as pre-planned promotional sales, manufacturer voucher validation, foreign currency handling, and certain types of payments.
POS units handle sales to consumers but only one part of the overall POS system used in the retail business. The "Back-office" computer usually handles other functions of the POS system such as inventory control, purchasing, receiving and transferring products to and from other locations. Other typical functions of a POS system are: storing sales information to enable customer returns, reporting objectives, sales trends and cost/price/profit analyzes. Customer information can be stored for receivables management, marketing objectives and specific purchase analysis. Many retail POS systems include accounting interfaces that "feed" sales and cost of goods information for independent accounting applications.
The double point sales system used by major retailers such as supermarkets and department stores have databases and software architectures that are far more demanding than a single station seen in small retail outlets. A supermarket with high traffic is not capable of systemic failure, then every point of the sales station should not only be very strong both in terms of software, databases and hardware specifications but also designed in such a way as to prevent causing systemic failure - as can occur through the use of one central database for operations.
At the same time updating between multiple stations and backend administration computers should be able to be efficiently done, so on the one hand either at the beginning of the day or at any time each station will have the latest inventory to process all the items for sale, while on the other hand at the end of the day the computer backend administration can be updated in terms of all sales records.
This is even more complicated when there is a membership system that requires real-time bidirectional updates about membership points between sales stations and backend administration computers.
Retail operations such as hardware stores (timber outlets), electronics stores and so-called multifaceted superstorees need special additional features compared to other stores. The POS software in this case handles custom orders, purchase orders, repair orders, service programs and rentals as well as a typical point selling function. Hard hardware is required for point of sale systems used in external environments. Wireless devices, battery-powered devices, all-in-one units, and internet-ready machines are typical in this industry.
Recently a new app has been introduced, enabling POS transactions to be made using phones and tablets. According to a recent study, mobile phone POS terminals (mPOS) are expected to replace contemporary payment techniques due to various features including mobility, low cost upfront investment, and better user experience. The convenience of doing long-distance financial transactions is expected to increase demand from small and medium enterprises for mPOS.
In the mid-2000s, the visually impaired community in the United States was involved in structured negotiations to ensure that the retail point of sale devices had tactile buttons. Without a key that can be felt, the blind can not independently enter a PIN or him. In the mid-2000s retailers began using "flat screens" or "signature catcher" devices that obliterate keypads keys. The blind are forced to share their secret PIN with the store clerks to use debit cards and other PIN-based cards. The blind community reached an agreement with Walmart, Target, CVS and eight other retailers who needed a real key so that the blind could use the device.
Physical configuration
The early stores usually store items behind the counter. The staff will take the goods to the customer to prevent the chance of theft and the sale will be done at the same counter. Supermarkets like Piggly Wiggly, starting in 1916, allow customers to take their own goods and pass the point of sale on the way to the exit. Many stores have a number of cash registers for payment, possibly now including self-payments. This requires customers to guess which line will move the fastest, if they want to minimize their waiting time; they are often frustrated to be wrong or stuck behind other customers who encounter problems or that take a long time to check it out. Some stores use single, longer but faster moving paths, serviced by multiple registers, resulting in the same average waiting time, but reduce frustration and variance in person-to-person waiting times. Regardless of the configuration, the cashier line usually passes an impulse purchase item to attract the attention of an inactive customer.
Hotel industry
The hotel's point of sale system is a computerized system that incorporates registers, computers and peripheral equipment, usually on computer networks for use in restaurants, hair salons or hotels. Like other point of sale systems, the system tracks sales, labor and payroll, and can produce records used in accounting and bookkeeping. They can be accessed remotely by the offices of restaurant companies, problem solvers and other authorities.
The point of sale system has revolutionized the restaurant industry, particularly in the fast food sector. In the latest technology, registers are computers, sometimes with touch screens. The register is connected to the server, often referred to as "store controller" or "central control unit". Printers and monitors are also found on the network. In addition, the remote server can connect to the store network and monitor sales and other store data.
A typical restaurant POS software can create and print guest checks, print orders to the kitchen and bar to prepare, process credit cards and other payment cards, and run reports. In addition, some systems implement a wireless pager and signature electronic signature devices.
In the fast-food industry, displays may be on the front counter, or configured for drive-through or walk-through cashiering and order taking. The front counter registers allow taking and serving orders at the same terminal, while the drive-through registers allow orders to be picked up on one or more drive-through windows, to be checked and served elsewhere. In addition to registers, drive-through and kitchen displays are used to view orders. Once the order appears they can be removed or recalled by the touch interface or with a bump bar. The drive-through system is often enhanced by the use of a wireless interconnect drive-through (or headset). The efficiency of the system has decreased service time and improved the efficiency of orders.
Another innovation in technology for the restaurant industry is wireless POS. Many high-volume restaurants use wireless handheld POS to collect orders sent to the server. The server sends the necessary information to the kitchen in real time. The wireless system consists of a microphone and a drive-through speaker (often one speaker will serve both purposes), which is connected to the "base station" or "center module." This, in turn, will be broadcast to the headset. A headset can be an all-in-one headset or connected to a belt package.
At the hotel, POS software allows for the transfer of dining costs from the dining room to guest rooms with one or two buttons. May also need to be integrated with property management software.
Newer and more sophisticated systems are getting away from the central file system "central file server" and going to the so-called "cluster database". This removes system terminations or anything that can be associated with a back office file server. This technology allows 100% of the information not only stored, but also withdrawn from the local terminal, thus eliminating the need to rely on separate servers for the system to operate.
The popular POS Tablet system for retail solutions is now available for the restaurant industry. Initially the system was not sophisticated and many early systems did not support remote printers in the kitchen. The tablet system is currently used in all types of restaurants including service desk operations. Most tablet systems upload all information to the Internet so managers and owners can view reports from anywhere with passwords and Internet connections. Smartphone Internet access has made warnings and reports from POS very accessible. Tablets have helped create Mobile POS systems, and POS Mobile apps also include payments, loyalty, online ordering, table-side reservations by staff and table-based bookings by customers. Regarding the payment, mobile POS can accept all types of payment methods from contactless cards, cards equipped with EMV chips, and NFC enabled mobile cards. Mobile POS (AKA mPOS) is growing rapidly with new developers entering the market almost daily.
With the growing number of cheap touch screen tablet computers, more and more restaurants have implemented their own bookings through POS tablets that are permanently placed on each table. Customers can browse the menu on the tablet and place their order which is then sent to the kitchen. Most of the restaurants that have an iPad self-order menu include photos of the dishes so that guests can easily choose what they want to order. This apparently improves service and saves manpower on the part of the restaurant. However this depends on how smart the system has been programmed.
For example, some self-service systems that do not require staff assistance may not recognize the next sequence of the same customers on the table. As a result, customers are still waiting and wondering why both food and beverage orders are not being served.
Another example of how smart the system is, is whether an order that has been placed but not yet processed by the kitchen can be modified by the customer via a tablet POS. For unprocessed orders, customers must be given the option to take their order easily and modify it on tablet POS. But when the order is being processed, this function will then automatically be disabled.
Self-service systems are not always completely free from intervention by staff and for some good reasons. For example, some restaurants require that the items selected by the customer are attended and can only be placed by waiters who have the passwords required to do so. This prevents fake orders - as can be entered by children who play - and subsequent disputes on goods ordered. If alcoholic drinks are ordered, it is also necessary for the waiter to verify the age of the customer first before sending the order.
Technical specifications for implementing an ordering system themselves are more demanding than POS stations controlled by a single cashier. On the software and hardware side of each tablet on the customer's table should be connected to the cashier's POS station and kitchen computer so that both are kept updated on the placed order. The common databases serving this network should also be able to serve many users simultaneously - cashiers, customers, kitchens and even bar drinks.
Therefore it should be noted by developers that some of the popular databases used by Ms Access may have specifications that can be used by multiple concurrent users. But under the pressure of the POS system, they can fail miserably resulting in constant errors and data corruption.
POS systems are often designed for various clients, and can be programmed by end users according to their needs. Some large clients write their own specifications for vendors to implement. In some cases, POS systems are sold and supported by third-party distributors, while in other cases sold and supported directly by vendors.
The selection of a restaurant's POS system is essential for daily restaurant operations and is a major investment that restaurant management and staff have to live with over the years. The restaurant's POS system interacts with all phases of restaurant operations and with everyone involved with the restaurant including guests, suppliers, employees, managers, and owners. Selection of a restaurant's POS system is a complex process that must be done by restaurant owners and not delegated to employees. The purchase process can be summarized into three steps: Design, Compare, and Negotiate. The Design step requires research to determine the restaurant's POS feature required for restaurant operations. With this information, restaurant owners or managers can compare restaurant POS solutions to determine which POS systems meet their requirements. The final step is Negotiate pricing, terms of payment, including training, initial warranty and ongoing support costs.
Forensic accounting
The POS system records sales for business and tax purposes. Illegal software dubbed "zappers" can be used on POS devices to falsify this record with a view to avoiding tax payments.
In some countries, legislation is being introduced to make the cashier system safer. For example, the French treasury is estimated to fail to collect about EUR14 billion of VAT revenue annually. The 2016 Financial Bill is intended to address some of these losses by requiring taxpayers to operate on a "secure system". Therefore, from 1 January 2018, all retail businesses in France are required to record customer payments using certified secure accounting software or cashier systems.
An authorized cash register system shall provide (i) unlimited, (ii) security and (iii) storage and archiving of data. All businesses required to comply must obtain a certificate from the cash register system provider stating that the system meets these requirements. This is because VAT taxpayers may need to provide a certificate to the tax authorities indicating that their cash management system meets the new requirements.
If a business can not provide this certificate to the tax authorities, they can be fined. And, if the tax authorities can demonstrate the use of fraudulent systems, both businesses and software providers may face tax penalties, fines, and criminal penalties. Certification can be obtained either from: a body accredited by the French Accreditation Committee (ComitÃÆ'Â © franÃÆ'§ais d'accrÃÆ' Â © ditation or COFRAC) or the cashier system software provider.
Security
Despite the more sophisticated technology of the POS system than with a simple cashier, the POS system is still vulnerable to employee theft through the sales window. A dishonest cashier at a retail outlet can collude with a friend who pretends to be another customer. During checkout, the cashier can bypass the scanning of certain items or enter a lower quantity for some goods so that it is profitable so that the "free" goods.
The ability of the POS system to cancel the receipt of closed sales for the purpose of a refund without the need for a password from the official supervisor is also a security hole. Even the function of issuing a receipt with a negative amount that can be useful in certain circumstances, can be utilized by the cashier to easily raise money from the cash drawer.
To prevent the employee's theft, it is essential for the POS system to provide an admin window for the boss or administrator to create and check daily sales receipts lists, especially with regard to the frequency of canceled receipts before completion, receipts returned and negative receipts. This is one effective way to alert the company to suspicious activity - such as the high number of sales canceled by a certain cashier - that may occur and take monitoring action.
To further prevent employee theft, a sales counter must also be equipped with a closed-circuit television camera directed to the POS system to monitor and record all activities.
On the backend, prices and other changes such as discounts for inventory items through the administration module must also be secured with a password only given to trusted administrators. Any changes made should also be recorded and can be retrieved for review.
Sales and inventory records are very important to businesses because they provide very useful information to the company in terms of customer preferences, customer membership details, what are the best-selling products, who the vendors are and what the margins are from them, the total revenue and monthly costs of the company, just to name a few.
It is therefore important that reports about these things generated in the administrative backend are limited only to trusted personnel. The database from which this report should be generated must also be secured through passwords or through encryption of data stored in the database thus preventing it from being copied or altered.
In spite of all of these precautions and more, the POS system can never be completely secure from internal abuse if clever but dishonest employees know how to take advantage of many of their useful abilities.
News reports about hacking the POS system show that hackers are more interested in stealing credit card information than others. The ease and advantages offered by the POS system's ability to integrate credit card processing have the downside. In 2011, hackers were able to steal credit card data from 80,000 customers because of the security standards and POS configuration for PCI Compliance - which governs the security of credit card and debit card payment systems - "directly and overtly ignored" by the Subway franchisee.
In June 2016, several hundred Wendy fast food restaurants had their POS systems hacked by illegally installed malware. The report goes on to say that "the number of franchised restaurants affected by cybersecurity attacks is now estimated to be much higher than the 300 restaurants already involved" and that "hackers commit hundreds of thousands of fraudulent purchases on credit and debit cards issued by various financial institutions after breaking Wendy's computer system late last year ".
Again, this exploitation by hackers can only be possible because payment cards are processed via a POS system that allows malware to intercept data cards during processing or steal and send unencrypted card data stored in the system database.
In April 2017, security researchers identified a critical vulnerability in point of sale systems developed by SAP and Oracle and commented, "The POS system is plagued by vulnerabilities, and incidents occur because their security flaws are under the spotlight." If successfully exploited, this vulnerability provides the actor with access to any legitimate functionality of the system, such as changing the price, starting and terminating the terminal remotely. To illustrate the attack vectors, the researchers used examples of POS hacking to convert MacBook prices to $ 1. Security issues reported to vendors, and patches released shortly after notification. Oracle confirms security bugs affecting more than 300,000 Oracle POS Systems
In some countries, credit and debit cards are only processed through payment terminals. So one can see quite a lot of such terminals for different cards littering the sales counter. However, this inconvenience is offset by the fact that credit and debit card data are much less vulnerable to hackers, unlike when payment cards are processed through a POS system where security depends on actions taken by end users and developers.
With the launch of mobile payments in particular Android Pay and Apple Pay in 2015, it is expected that due to its greater convenience coupled with good security features, this will eventually surpass other types of payment services - including the use of payment terminals. However, for mobile payments to become truly mainstream, mobile devices like NFC-enabled smartphones must first become universal. This will be a matter of a few years from the time of this writing (2017) as more and more new smartphone models are expected to be NFC-enabled for that purpose. For example, iPhone 6 fully supports NFC for mobile payments while iPhone 5 and older models do not. The above disaster risk risks connected with processing the use of payment cards via the POS system will then be greatly reduced.
See also
- EFTPOS
- ISO 8583
- JavaPOS
- Category of company of sale
- Place of display sales
- Point of Sale Malware
- Payment terminal
- Just payment
- Standard Interchange Language
- UnifiedPOS
- Back-office Software
- Windows XP, a widely used operating system on POS machines
References
External links
- Place of sale in Curlie (based on DMOZ)
- Renewal of the Definition and Example of Harbortouch POS System Type
Source of the article : Wikipedia
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