Connectivity is the buzzword among POS system providers in 2018. Cloud based technology, improved AI and machine learning, and 24/7 connections enable retailers and their payment providers to communicate in real time regarding both transaction data and back office apps. By using the right technology, payment providers can make sure their retailers are operating at optimal productivity, and head off technical problems before they have a chance to derail operations. Here are 3 practical ways your retailers can benefit by integrating technology tools into the point of sale.
Manage POS Functionality
Obviously, the top priority in POS management is keeping merchant systems online and operational. This is where real time technology is especially helpful to payment service providers. Many POS systems issue live status notifications. If a system is beginning to bog down, you can get a valuable heads up to prevent a crash. In addition, this connectivity enables PSPs to push files remotely to a merchant’s terminal, installing updates needed to keep them running at optimal levels.
Increase Fraud Detection
Because of the dollar value involved, POS systems are extremely vulnerable to both large scale data hacks and small scale fraudulent attempts. According the the Verizon Data Breach Investigations Report 2017, it takes the average retailer months to notice a POS system compromise - giving thieves plenty of time to steal data at their leisure. And since data breaches cost small businesses over $30,000 on average, a reduction in time to detection is vital.
On an in-store basis, new technology is also useful for fraud prevention. Typical sources of fraud include inventory shrinkage, fraudulent returns, discount abuse, and false price adjustments. Machine learning tools can analyze a retailer’s POS system trends, noticing unusual patterns quickly and helping cut down on losses.
Better Business Management
Processing transactions is the primary aim of POS systems, but don’t overlook the value these systems bring to your merchants in back office functionality. Most POS systems either come equipped with a variety of useful apps, or can be easily integrated with third party products that your merchants currently use. From inventory management, reporting and analytics all the way to digital loyalty programs and omnichannel integration, POS systems can bring real added value to your merchants.
Of course, all these technology tools come with a catch: getting busy merchants to commit to the learning curve. Many merchants don’t feel they have the time or interest to learn about new POS features. But if you can explain the benefits in terms of improved system reliability, decreased fraud loss, and easier business management, your merchants will wonder how they ever functioned without it.