What is the difference between POS and payment system?
Discover the key differences between a POS system and a payment system with FAVORPOS. Our detailed guide explains how a POS integrates various business operations, while a payment system focuses on processing transactions. Understand which solution best suits your business needs. Explore further to optimize your operations today with our expert insights.
This is important because although POS (point of sale) system and payment system are two terms that can be used interchangeably as they refer to similar aspects of the point of transaction, they are two distinct systems in any overall system of transaction. Here's a breakdown of their differences:
1. POS (Point of Sale) System
A POS is a complete package that is implemented by companies to handle all aspects of a sale transaction process. It comprises the physical parts that are used by the businesses to close sales, keep records of stocks, prepare reports, and manage different issues regarding customers.
Components of a POS system
Hardware: Some examples of point of sale equipment are cash registers, barcode scanners, receipt printers, touch-screen terminals, point of sale credit card printers, and cash drawers.
Software: POS software includes transactions and sales, customer management, inventory control, reporting, and occasionally employee affairs or payment. It is also frequently connected with accounting software.
Transaction Process: The POS system is also involved in a cash out area where customers use money to purchase goods or avail of services. It may apply to formal or informal modes of payment such as cash, credit/debit cards, or mobile wallets.
Functions of a POS system
These include tracking inventory and management of the same.
Sales and transactions brokering
Employee management
Reporting and analytics
Customer relationship management (CR),
Inventory controlling or management
2. Payment System
A payment system is a more specific term that describes the technological and operational area that covers the flow of money from the consumer to the merchant. It concerns a method, manner, or form in which payments are made or how payments are effected by anyone and between anyone. Payment systems can be both electronic and conventional, and conventional systems may also be referred to.
Types of Payment Systems
Card Payment Systems: Comprises systems that deal with the acceptance of debit/credit cards (example, Visa Master Card).
Mobile Payment Systems: Contactless payment methods where consumers have to use their smartphone (iPhone, Android, Samsung, etc.) to make payments like Apple Pay, Google Pay, and Samsung Pay.
Online Payment Systems: such as PayPal, Stripe, or Square, specifically to cover the payments between two parties through the internet.
Bank transfers: generally referred to as direct bank transfers, whereby funds are transferred from one account to another.
Cashless Payment Systems: Particularly applies NFC (Near Field Communication) or QR code-based systems.
Functions of a Payment System
- Payment authorization and authentication
- Secure processing of funds (via encryption and compliance with security standards like PCI-DSS)
- Payment clearing and settlement (the transfer of money from one party to another)
- Fraud detection and prevention
3. Key Differences
|
Feature |
POS System |
Payment System |
|
Purpose |
Facilitates the overall sales transaction process (sales, inventory, etc.). |
Handles the processing of payments and fund transfers. |
|
Scope |
Broader often includes inventory management, reporting, and employee management. |
Narrower, focused solely on payment processing. |
|
Hardware |
May include terminals, printers, barcode scanners, and card readers. |
Typically involves card readers, mobile wallets, or online payment gateways. |
|
Functionality |
Manages transactions and records; integrates with other business systems. |
Authorizes, processes, and settles payments. |
|
Payment Types |
Accepts various payment methods (cash, credit card, mobile payments, etc.). |
Focuses specifically on the technology for processing payments (cards, mobile apps, etc.). |
In essence, POS systems are broader systems that manage the sales process, and payment systems are the specific technologies that handle the actual monetary transaction. Many modern POS systems integrate with payment systems to offer seamless payment processing.
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Where to Get High Quality Pos Machines?
For Hotels
What types of reports can I generate through your POS system?
You can generate detailed real-time reports on sales, guest spending patterns, department performance, and more.
Can mobile POS be used for poolside or outdoor services?
Yes, our mobile POS solution allows staff to place orders and process payments in any area of the hotel (such as poolside or outdoors), improving guest convenience.
For OEM
What kind of OEM service do you provide?
OEM (Original Equipment Manufacturer) service means that we provide services such as printing logos and custom packaging to customers according to their needs.
For Restaurants & Cafes
How to update the menu or add new items?
After being equipped with the corresponding software, our POS machine allows you to easily update the menu through the backend management interface. You can add new items, modify prices or adjust the menu layout, and all changes will be reflected in the system in real time, ensuring that employees always have the latest menu information.
For Solutions Retail
If there is a problem with the device, how can I contact your after-sales support?
You can contact our after-sales team by phone, email or online customer service. We provide 7x24 hours of technical support to ensure timely response and resolution of your problems.
Aluminum Dual Screen Pos Terminal Pos Systems 15.6 inch Touchscreen Pos
FAVORPOS Aluminum Dual Screen POS Terminal features a 15.6-inch touchscreen, ideal for seamless transactions. As a trusted OEM Windows POS manufacturer, we deliver durable, high-performance solutions tailored for retail and hospitality businesses.
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Android Mobile POS Handheld Device, a versatile solution designed for on-the-go transactions. This compact POS system features a built-in printer for instant receipt printing and offers optional Wi-Fi and NFC connectivity for seamless payment processing. Perfect for retail and hospitality environments, it allows staff to assist customers anywhere in the store or at events. With its user-friendly interface and durable design, this handheld POS is an essential tool for enhancing customer service and streamlining operations.
10 inch Price Checker Device Supplier Barcode Scanner for Sale Price Check for Supermarket
FAVORPOS offers 10 inch Price Checker Device, perfect for supermarkets. This wall mounted 10 inch touch screen barcode scanner ensures fast, accurate price checks, enhancing customer experience and operational efficiency. Durable, user-friendly, and perfect for high-traffic retail environments.
8 inch Touchscreen Price Checker Barcode Scanner Wifi Optional Android Win 10
FAVORPOS Touchscreen Price Checker offers a user-friendly interface, perfect for retail environments. With optional Wi-Fi connectivity, this device runs on Android or Windows, providing flexibility and ease of use. The integrated barcode scanner allows for quick price verification, enhancing the shopping experience for customers. Compact and efficient, it's designed to streamline operations and improve checkout speed.
Get in touch
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We look forward to working with you to expand the market together.
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