Supporting different kinds of payment methods for retail POS system might be the most simple and basic things that you expect a POS has to meet whenever you plan to find a suitable POS to deploy for your retail store. However, considering this as a basic thing, many store owners ignore checking which different payment methods POS can support and if it’s suitable for your business and country.
Now, we should consider all possible payment methods and choose which is suitable for your retail POS. Specifically, I would like to enlist different aspects we have to consider about payment when deploying a POS system
1. Payment methods
This is quite simple. Staff takes money from customer and pay back the exchange (if yes). However, you have to consider if POS is connected with cash drawer to open cash drawer whenever an order is created on POS or not. Otherwise, staffs can easily open cash drawer anytime and it’s hard for you to control cash amount
Plus, POS should allow you to open session, set up denomination of one currency then you can count exactly quantity of each denomination when open and close session.
b. Card (VISA, MASTER, ARAMEX, etc)
Basically, any card you can think about. This should be supported by a terminal that can process payment via card.
There’re a few ways to process payment here
- Use a stand-alone terminal (can be a virtual terminal – which you easily open on browser or a hardware terminal which you can swipe/tap card): Without POS, this terminal still can process payment via card. Usually, for this method, you manually fill the amount you need to process payment, swipe/insert/tap the card to get payment processed. A reference number is displayed to show that it processes payment successfully. You can manually fill this reference number to POS to for accountant to work on them or check later with payment provider.
By this way, you can use any terminal that is supported in your country and use with any POS.
- Use an integrated terminal: Instead of manually filling the order amount to terminal and fill the reference number back to POS, 2 steps here are automated once your POS is integrated with terminal. If your POS doesn’t support this terminal, don’t forget to ask the terminal/payment processor to provide API/SDK to get it integrated with POS. Magestore deployed a lot of projects in which client needs to integrated with special terminal in their own country or integrate with terminal that is supported by the same payment provider with their e-commerce.
For instance, a retailer uses Braintree for website will not want to use Stripe payment terminal for their retail store because more transactions they do with one provider, better price they can get. Plus, it’s impossible to change to terminal that is supported by Stripe because their industry is specially treated by Braintree with very beneficial programs. Then if you need to set up a terminal supported by Braintree in your brick-and-mortar store, you have to talk with Braintree to see if they support any in-store terminal and even API/SDK to do integration with POS.
- Use card reader and integrate with payment gateway: By this way, whenever customer wants to pay via card, a payment form as it is on website will be displayed. However, instead of manually filling info of card as the customer does on website, staffs can swipe card by a device/scan info of card by camera to fill info to the form automatically (although this way is not secure and you still have to manually fill CVV of card, e.g: Charge Stripe here ). Then payment is processed via payment gateway and return a reference number to POS automatically. For this method, we have to check if it’s possible for POS to connect with card reader/camera to read info of card
We can enlist a few names such as Apple Pay, Google Pay, Wechat pay, etc
There’re a few ways to process these payment methods
- Use terminal: You can use terminal that supports these payment methods. Verifone P400 Stripe is also a terminal that supports Apple Pay and Google Pay
- Scan fixed QR code: This is a fixed QR code and you can understand it as a bank account of retailer. Whenever customer makes payment, they scan QR code and manually fill amount they want to pay to transfer money. Staff checks Wechat pay account, making sure that they received money and manually fill reference number of that transaction to POS. This can be called as stand-alone e-wallet.
- Scan dynamic QR code: This QR code is created after each transaction and customer only needs to scan them and money is automatically transferred to retailer’s e-wallet, reference number is automatically filled in POS. This can be called as integrated e-wallet.
d. Bank transfer/Check
Basically, you manually transfer to bank account and choose to pay by check so retailer needs to check it later with their bank.
e. Company Charge account
Each company has a limitation of credit so different staffs in that company (B2C) or that company itself (B2B) can choose to pay later within a limited number. System should record the amount each people in that company/ the company is owed each time and calculate total at the end of each month or maybe warn staff not to allow these people to use this payment method if total amount is over limited number.
f. Store Credit
Customer can buy Credit to use in this store in the future. For example, you can use $50 to buy $100 credit which equals to $100 that you can spend in this store in the future
2. Payment terms
a. Multi-payment methods
One good POS system should be able to allow customer to pay by different kinds of payment methods and record these payment methods clearly, summarize them at the end of the day/at the end of session.
b. Layaway or deposit
Customer can choose to pay upfront partially and pay everything later when they get products or even after a period of time
c. Pay later (Net term x days)
This is popular for B2B when customer can buy now and pay after 30 days, 60 days dependent on your terms they negotiated before. Plus, we also can add limitation and warning in case the number of debt dates are over the allowed numbers of dates in terms.
d. One or many currencies
Many retailers who sell to tourists, expats or are located in the border of different countries expect that their POS can support different currencies. Therefore, one good POS in this case should support different currencies and you can easily convert order amount from this currency to another one