A POS System, or Point Of Sale System, is a computerized terminal that businesses use to manage their transactions with their customers. In a very general sense, a cash register and its constituent parts make up the POS system. But the modern business terminology identifies the system as the specific unit for processing credit card transactions.

Using one of these systems in your restaurant will make it very easy for your customers to pay for their food order by simply swiping their credit or debit card. Once the customer’s card has been swiped, the charge is checked against their credit or bank account, the bank approves the charge, and payment to your business is authorized. And on the receipt, some POS terminals will print a recommended tip amount to help your customers with their gratuities. All of this comes from an approval by the customer either by entering their PIN on a number pad, or signing a receipt.

Like many strategic, technological, and operational changes that have come to the business world, there are positives and negatives presented by POS systems.

The terminals allow for easier processing of payments from customers, giving them the option of paying with a credit card or debit card. By shifting many payments to this method, the need to make frequent bank deposits is reduced. And these electronic payments cut back on the amount of cash handled at the business, limiting opportunities for theft.

But one of the challenges presented is teaching the staff how to use the system. With a busy restaurant staff, learning a new technology can be challenging. But once the staff knows how the system works, many learn to love it. And (although not really a challenge, but a cost), POS systems require access to a telephone or internet connection to process charges.

Restaurants considering adding a POS system should contact their bank. Most banks provide the full system, including helping to install the terminal and providing training to your staff. The bank will also explain the various costs involved with the different system options. It’s important to ask about per-transaction charges, as some banks generate significant income through these fees. If your bank can’t meet your needs, or if you feel that their fee structure isn’t what you’d prefer to pay, shop around. There are many providers, and many financial institutions will offer competitive packages to get your business.

Adding a POS system to your restaurant is another way to improve the service you provide your customers, and improve your business. Get in touch with your business banker to see how the system might help your restaurant business.

Want to find out more about POS, then visit Aralco’s site on how to choose the best Restaurant POS for your needs.