Average Credit Card Processing Fees in 2022

A crucial part of achieving maximum profit in a small business is minimizing expenses, and one cost component to keep a particularly sharp eye on is credit card transaction fees. The amount you pay to each company involved in a credit card transaction and how you take payments directly affect how much you spend. 

This article reviews the average credit card processing fees for businesses in 2022 and what factors determine your rates. 

Average Credit Card Processing Fees In 2022

A credit card transaction fee is a percentage per transaction and a flat fee per transaction. The current average is 2.65% plus $0.10. Prices will vary depending on the entities involved, the pricing model you choose, and other surrounding factors (covered below). As a general overview, the following is the price range per credit card company listed from lowest to highest:   

Each company has a per-transaction flat fee ranging from $0.05 to $0.10 except for American Express, which charges $0.10. 

Understanding Fees for Each Service  

The fees you pay encompass include each entities cost involved in each transaction: 

Interchange fees are the charges from the card-issuing bank—the bank shown on MasterCard and Visa credit cards. Not all credit cards have secondary banks. American Express and Discover work as their own banks. 

The interchange fee is by far the highest amount you pay because it covers credit card risk, encompassing nearly the entirety of the costs.   

Assessment fees are small percentage fees for using the credit card company’s network that sends and receives payment requests. Fees range from 0.12% to 0.15%. 

Markup fees are costs for using a payment processor to send and receive payment authorizations to and from your business, the card-issuing bank, and the merchant account. 

Merchant acquiring bank fees are for the merchant bank account where the credit card payments go before landing in your business account. This fee most often appears as monthly or annual charges and varies by the bank and services you choose. 

How Can You Reduce Your Credit Card Transaction Fees?

The following are ways to save money or keep costs to a minimum: 

Limit the Cards you Offer 

American Express and Discover charge high fees, so some businesses choose not to honor them. Remember, this decision will restrict your chances of a sale, so carefully weigh this option. 

Choose a Pricing Model

You can choose from three pricing options: 

This model breaks out each cost in a credit card transaction in detail in the form of a percentage and per-fee transaction by each type of card. You gain a clear understanding of costs for each transaction. Generally speaking, you could experience the most cost savings with this option if your business experiences a high frequency of sales. 

 

This option is a flat fee for each transaction. This option provides a predictable cost per transaction that is particularly helpful for budgeting. This option most benefits businesses that have a low or medium frequency of sales.   

 

This option categorizes purchases into different pricing tiers. If you and your customer complete a sale in a low-cost tier, you pay lower than average pricing. Keep in mind that a high tier will work against you. For example, airline mileage cards often come at a higher rate. 

Negotiate with Your Merchant Account Provider

Accepting credit card payments requires a merchant account to receive payments and transfer the funds into your general business bank account, and this type of account can require fees. 

You will save most by opening a merchant account at a bank, and your life will be easier if the merchant account bank and business bank are the same. Still, it is a good idea to shop for different banks to find the lowest rate or suitable combination of pricing and service benefits you need. You can use the information to negotiate a lower rate with your current bank. 

Bank merchant accounts can be difficult and time-consuming to set up because of the amount of information required, so many small businesses enlist the help of a third-party payment processor that offers a merchant account with a faster and easier setup. On average, you will pay more for this service than through a bank.   

Negotiate with Your Payment Processor 

Payment processors do more than offer a merchant account, and their roles are critical. These companies send and receive payment requests and approvals between the customer’s card issuing bank, your terminal, and your merchant account. Any approvals or denials during a purchase are thanks to your payment processor. 

Though some banks may offer processing services, most use a third-party processor, and in either case, this service requires a fee. Like merchant banks, each processor varies in its services and fees, which is why shopping around can uncover savings. 

Other Factors that Influence Your Rate

Business history: If you have a history of unreliable payments, you will pay higher rates. 

Merchant category code (MCC): This code categorizes the goods and services your business sells according to their risks. Note, not all business types have an MCC. 

Card-Present vs. Card-Not-Present Transactions: The way you place a customer’s order can determine your rates. If you are a brick-and-mortar business, you will save most by running card-present transactions with the customer in front of you and manually swiping the card because this is considered low risk of credit card theft and disputes. 

If you are an online business, you can keep pricing down by using a payment gateway to create a more secure connection during internet transactions. 

Debit Cards vs. Credit Cards: Debit cards carry less risk because the funds are confirmed as available in a customer’s bank account.    

Transaction Size: The larger the transaction, the greater the risk and the higher the rate. 

Not sure what is right for your business? Check With Your Merchant Services Provider and Processor

BNG Payments is both a processor and merchant services provider. With deep experience in the payments industry and working with small businesses, we can help you determine the services and rates that work best for your business to maximize profits. Contact BNG Payments to get started. 

What is Interchange-Plus Pricing for Credit Card Processing?

Interchange-plus pricing is a type of credit card processing pricing that helps small business owners understand the costs of processing credit cards. Having a clear understanding of costs from all credit card associations and your credit card processor helps business owners avoid paying unnecessary fees or processing more than they need. 

But interchange-plus pricing isn’t the only pricing model, and it may not be right for you. There is no one-size-fits-all model when choosing a credit card processing pricing structure. The best option for your business will depend on several factors, such as the average ticket amount, processing volume, and interchange rates. It will also depend on the pricing structure offered by the merchant account provider and your processor.  

This article looks at the interchange-plus pricing model and its differences from other common pricing models. The good news is, no matter which option you choose, all models work for all types of credit cards, from basic credit cards to business cards/corporate cards, rewards cards, and even debit cards. 

What Is Interchange-Plus Pricing For Credit Card Processing?

Interchange-plus pricing is a credit card processing price structure that separates the components of processing expenses, allowing for transparent reporting and interchange optimization, which frequently results in cheaper costs than alternative pricing structures, such as tiered or bundled.  

When a business is billed via interchange-plus pricing, they are charged for the actual interchange cost incurred on each credit card transaction based on the card type, a per-transaction fee from the credit card processor, and an annual fee. Business owners get a clear picture of the percentage markup for interchange fees (bank card association fees) from all card networks and detailed information, such as the charges for each type of card presence (in-store or card-not-present transactions)—even membership pricing.  

This pricing is favorable to other types of pricing models because it eliminates ambiguity about credit card processing fees. You can do a full card processing cost analysis with a clear view into an often murky and expensive aspect of business. 

In addition, interchange-plus pricing is beneficial for businesses that process a high number of credit card transactions because it allows business owners to negotiate better rates with their payment processor. 

By understanding interchange-plus pricing, you can make more informed decisions about processing payments for your business. Still, it is crucial to understand other credit card processing pricing structures. Again, your needs may require a different option.  

Is There an Alternative to Interchange-Plus Pricing?

There are two pricing models to choose from: flat-rate pricing and tiered pricing.  

Interchange-Plus Pricing vs. Flat Rate or Blended Pricing

With flat-rate pricing, merchants pay a flat monthly fee for every aspect of credit card processing, including transaction fees and equipment costs. This pricing is beneficial because it offers a clear understanding of the credit card processing cost for each transaction you run. 

For a business with a low to medium volume of credit card transactions and debit card transactions, flat pricing may be the best option thanks to lower monthly fees than interchange-plus. They still provide some transparency into the cost of each transaction processed. 

However, for businesses with a high volume of credit card transactions, interchange-plus earns more significant savings because the processor markup (the amount charged on top of interchange and assessment fees) tends to be lower for larger processors. Businesses that process a high number of transactions have more leverage when negotiating rates with their payment processor. A payment processor knows if it doesn’t offer a competitive rate, a business will go elsewhere. 

Interchange-Plus vs. Tiered Pricing

Interchange-plus is similar to tiered pricing, but it’s a separate pricing structure. Interchange-plus looks at the different interchange rates for all credit cards based on merchant category code (MCC) and creates categories of its own before adding additional fees. 

A tiered card processing pricing model is different in that it typically consists of three tiers—qualified, mid-qualified and non-qualified. Transactions that fall into a qualified interchange category will have the lowest processing charge, while those that fall into the non-qualified tier will have the highest. 

To ensure this option financially works for your business, carefully review the tiered pricing models. Scrutinize hidden costs at each card level because this pricing model is one of the more popular card schemes for collecting higher fees. 

Interchange-plus pricing is a much more transparent way of looking at credit card processing rates, as it’s easy to see where each transaction falls within the pricing structure. It usually results in more predictable credit card processing costs for merchants.  

As a New Business, Fees, Credit Cards and Debit Cards are As Important As Your Business Cards

When first starting your business, achieving profit as soon as possible is the name of the game, and the fee option you choose for credit cards is one of the first decisions to tackle. Each payment model has its benefits and drawbacks, so it’s essential to understand what each entails before making a decision.  

In summary, here are the benefits of each option:  

Advantages of Interchange Pricing 

Advantages of Flat Rate Pricing  

Advantages of Blended Tiered Pricing  

BNG Payments

As a small business owner, every decision you make to achieve profits is integral, including the type of card payment you’ll accept and pricing structure. BNG Payments has extensive experience helping small and medium-sized businesses and merchants accept credit card and debit card sales. We can help you settle on an effective rate and processing strategy. 

We know the credit card processing industry and can provide you with a competitive rate and excellent customer service.  

Contact BNG Payments to get started.

How Credit Card Transaction Processing Works

Each business day, 108 million credit card payments process nationwide, making up 38% of all transactions. If you have an online business, your percentage is most likely higher. You make more money by honoring credit cards than if you don’t. And with the benefit of instant credit for purchasing, these cards lead to higher per-order transactions, helping to compensate for credit card processing fees.

With the continued high demand for credit card purchasing from customers and merchants, today’s technology for merchant service providers makes it even easier for businesses to connect to merchant banks and credit card networks via touchless chip cards and mobile payment systems.

As a small business owner, you may wonder how credit card purchases are processed. What exactly goes into the transaction process? This article lays out each entity and each step in the process.

Understanding Credit Card Processing: How Credit Card Transaction Processing Works

Every time a customer swipes a credit card, several behind-the-scenes actions occur within seconds. Processing involves several parties: the cardholder, the merchant, the acquiring bank, the issuing bank, and the card network. Each party connects in coordinated steps, and the processing is complete the moment the transaction reads “approved” or “declined.”

A Step-by-Step Guide to How Credit Card Processing Works 

The entire process for credit card processing is a multi-step process between numerous entities. Still, approval for a customer order happens in a matter of seconds. All in all, the entire settlement process takes a few days. 

These are the stages and key parties involved in credit card processing:  

Stage 1: It All Starts with the Cardholder

A cardholder is an individual or business with whom the credit card is connected. The individual or business name shows on the card. 

Today, cardholder purchases are made through stationary or mobile payment terminals or online systems for added convenience to cardholders. Still, just as it has been since cards were first offered, the cardholder is expected to place the orders personally and is even required to show ID when buying in person. The credit card companies maintain contracts with cardholders under their name. 

Customers Place Orders with Merchants via a Credit Card Machine or Credit Card Software 

What are the methods for processing credit cards?  

Today’s technologies help merchants place orders anywhere they and their customers are located to improve the customer experience. Orders can be placed on terminals by brick-and-mortar merchants using a credit card reader or any number of touchless chip card systems. Cards can also run through a mobile device, online on the merchant website or through an eCommerce merchant site. 

These systems connect to merchant account software for immediate readings on payments, stock changes, and customer histories. A merchant services provider can help set up needed hardware and software and even aid in setting up merchant accounts at merchant banks.  

Payment Goes Through a Payments Gateway

When a customer places an order, the credit card terminal dials up a connection to the credit card gateway. This secure remote computer server lets credit card terminals log on and start a credit card transaction session with the credit card issuer.

The Payment Request is Sent to Your Credit Card Processing Company or Cardholder Bank

With the help of the gateway, the payment request is received by an acquiring bank or a payment processor. 

A payment processor is an institution in charge of sending the payment request and feedback to the credit card network and your payment terminal. Any approvals or denial information is a direct result of the payment processor.  

An acquiring bank is a bank that houses your merchant bank account, which is the account used for sending and receiving credit card payments to your business bank account. This account also handles any customer service-related issues regarding card acceptance. In some cases, the acquiring bank acts as the processor. 

Merchants must have an acquiring bank account to receive credit card funds—it can be a bank account at the merchant’s business bank, another bank, or a third-party merchant account.  

Communication is Sent to the Card Associations (such as Visa or MasterCard)

The processor (or acquiring bank acting as the processor) sends the fund request to the credit card association, which forwards the request to the credit card’s bank to authorize payment. 

Card Associations (Visa, MasterCard, American Express, Discover) are electronic networks/clearinghouses in charge of communicating between the merchant and credit card banks. It also has other functions like maintaining the networks and offering guidelines for customers, merchants, and financial institutions. They also handle arbitration and overall governance and oversee interchange fees, channel requests, denials, and funds between the banks. In short, each network is an electronic highway used to connect banks and approve or deny funds transfers. 

When the card association receives the communication request from a processor, it forwards it to the issuing bank. What is an issuing bank? 

The Issuing Bank Checks Credit Limits, Funds, and Account Standing 

The issuing bank is not the customer’s personal bank account; rather, it’s the bank that offers credit for the funds. The bank entity, also called the credit card company, is indicated on the card.  

This point in the buying process is the authorization stage. The issuing bank checks that the customer’s account is in good standing, that they have sufficient funds for the purchase and won’t exceed the credit limit, and that payments to the account are current. If all is approved, the bank sends back an approval code through the card association network to the processor and the terminal, stating approval for electronic fund transfers. The same process follows for denials.    

The Credit Card Clearing Stage/Settlement Stage

With an approval code from the processor and a signature from the customer (if a purchase is made in person), the customer’s role in the transaction is complete. All that’s left is for the merchant to settle the payment. At this stage, the merchant sends a “batch” request to the processor. A batch isn’t just one charge, but a group or “batch” of credit card approvals. Typically, a merchant sends one batch per day. Batches can be sent more often, but merchants are charged for each batch submission. 

The processor reconciles the authorizations, sends each batch through the card association networks, and deposits the funds into the acquiring account minus the processing fees of the processor and the card association. The funds are then moved from the acquiring bank and into the merchant business account. Behind the scenes, the issuing bank deposits funds into the cardholder bank. The total movement and authentication stage takes a few days. 

Credit Card Fees: How Much Does Credit Card Processing Cost? 

The fees that merchants pay are a blend of interchange fees from the card issuer (the card’s bank) and credit card processing fees—a markup over interchange fees by the acquiring bank and payment processor. The total price varies based on the association network, the type of card, and the merchant code of the business corresponding to the type of goods and services the business offers. 

Other cost factors come into play as well for business owners. The processing method determines the interchange fee. For instance, an online transaction is more expensive than an in-person transaction due to increased risk. Other fees include late fees, annual membership fees, cash advance fees, and returned payment fees. It’s’ important to note that merchants, as well as customers, can be charged for a customer’s insufficient funds. 

Each entity in the payment process typically charges a percentage per transaction plus a flat fee. When factoring in all interchange rates and processing rates, the percentage ranges from 2.8% to 4.3%.   

How to Set Up Credit Card Processing through a Merchant Services Provider

Credit card processing doesn’t have to be complicated. Work with a partner, like BNG Payments, who will guide you through the process. Don’t be afraid to shop around, especially when considering a merchant services provider. Keep a sharp eye on the contracts. Some providers organize fees in ways that benefit them most in the end.  

BNG Payments offers competitive rates, clear and understandable contracts and excellent, U.S.-based customer service. Contact us to get started

 

The Key Features of a Point-of-Sale System

There are many point-of-sale systems, but not all will suit your needs. Some systems work better for small businesses, while others are designed for large ones. You want something compatible with your type of business and has features that will help manage inventory, sales data, etc. Let’s look at some features to see what would work best if important to you. 

What is a Point-of-sale System?

A point-of-sale system is a computerized method for recording retail services, restaurant operations, and other business functions. Sometimes they are also referred to as cash registers or POS systems. These systems are all about speed, ease of use, accuracy, and data tracking capabilities. 

How Do They Work?

When you purchase something using one of these systems, there are several steps involved, including scanning items on an electronic reader if necessary (usually needed when making certain types of purchase), entering payment information either by swiping a card through an attached machine or manually keying in the numbers, tallying up totals after everything has been rung up and pressing a button to finalize the transaction. 

It’s almost as simple as when you want to make changes in your system, like adding an item or removing one. It takes only seconds for someone with appropriate access privileges to update information on items, including prices, quantities available, or even how many times something has been ordered by customers (a great way of tracking trends). 

These systems are typically wired into compatible software that can be used either at home while managing data after hours or remote while away from the business location if necessary. This will depend upon which particular POS system is being used, but most provide this option for customer convenience. Some may need additional hardware beyond what comes standard, so be sure you know exactly what type of machine(s) you will need to use the system. 

POS systems have several features that benefit businesses. POS systems facilitate payment processing, but they are much more than that. Businesses can also use a POS system to generate sales reports, manage inventory, maintain positive customer relations, and manage employees. 

What Are Some Key Features of a Point-of-sale System?

POS systems include many different features, but several stand out as more important than others. Here is a list of key features and why they matter: 

Transaction management: This is the ability to track and manage all transactions, whether a customer pays for an item or your business takes inventory. This process helps businesses stay organized and keep everything running smoothly. 

Data storage: Data storage is necessary because it can be used in different ways when analyzing data from sales reports, financial records, point-of-sale system usage, etc. 

Customer relationship management: POS systems are also great for businesses because they can keep track of customer information, making it easier to provide good service and offer customized options. This is one way that businesses can compete more effectively against their competitors. 

Payment processing: This is one of the essential points-of-sale system features. It’s necessary to take payments from customers through credit cards, debit cards, checks, or cash. 

Inventory control: In addition to tracking purchases, a POS system also helps businesses keep track of inventory. This is important because it ensures they have enough items on hand and that things don’t run out unexpectedly. 

Multi-location functionality: If your business operates at multiple locations, you will want a point-of-sale system that can function within various locations. This is especially important for businesses with multiple physical locations and plenty of employees at each location to make sure the system runs smoothly. 

Employee management: Another key feature that many POS systems include are tools used to manage employees and keep track of their activity on your business’ time. This can be helpful in various ways, including ensuring that employees are paid appropriately and helping to reduce theft. 

Business analysis: Business owners need information on how well the business operates to improve or change the business. A quality POS system should provide this information so businesses can make informed decisions about their operations. 

Sales reporting: This is another essential feature that assists businesses in tracking their sales, determining which products are selling the best, and making changes as needed. 

How Do I Find Out if My Business Needs One?

POS systems are prevalent in small businesses because they provide so much flexibility at relatively low prices compared to retail establishments. It only makes sense for a small business to invest in a POS system because it will allow you, the owner or manager, to track inventory and activity while also ensuring that customers are adequately serviced. 

Suppose your business is involved in transactions with debit cards, credit card payments, or other types of electronic payment methods. In that case, investing in an affordable point-of-sale system is one of the smartest moves you can make. 

What Other Key Features Should I Consider? 

While all point-of-sale systems have essential features, your business may need additional specific functions to meet its needs. For example, retail stores will benefit from a POS system with credit card processing capabilities. At the same time, restaurants or any food service business will need features that help them keep track of inventory. 

How To Choose the Right POS System?

When you decide on which point-of-sale system to choose, make sure that your choice can meet all of the needs of your business. You will also want to look at what other businesses in similar industries use and determine whether or not it could work for you. These systems shouldn’t be looked at as an expense; instead, they should provide clear benefits. 

Begin by looking at the core features of a POS system. What is important to you? Do you want wireless functionality, or will your business not require this? Is it crucial that employees email receipts for their customer transactions, or can they print them out instead? It’s best if these questions are asked before shopping around for systems because, after all, no matter which one you choose, there will always be something else down the line that could have been included in your purchase - but wasn’t. 

Next, decide whether an online POS System would work better with your type of business and set up. Some businesses won’t need any electronic payment processing whatsoever. In contrast, others may never go into physical retail locations but sell their items online. 

Suppose you are looking to use the system for your online store and physical locations. In that case, it is wise to look into a POS System that can be used on several devices at once with multiple people working on them all simultaneously and one that offers customization capabilities - especially if employees have different roles within your company. This way, they will each still have access to everything they need without having too much information available in some areas than others might require and allowing managers or owners higher levels of control over what data is accessed where.

Conclusion 

If you’ve been wondering how to improve or change your business, then a POS system is just what you need. Discover the benefits of these systems and determine if one would work for your company with this article on key features to look for before purchasing. 

A point-of-sale system can be an integral part of any retail establishment, restaurant, or other foodservice business that uses credit card processing or electronic payments methods. 

If you are looking into buying a POS System, make sure it has all the functions required by your specific needs, including those explicitly related to online stores and physical locations. 

When deciding which point-of-sale system will best suit your business needs, take some time first to consider what’s important to you and how your business will use it. 

If you plan on running an online store and a physical retail location, your POS systems should have features that allow access to both types of stores from multiple devices at once with customizable capabilities. 

By considering these key factors first, you’ll increase the likelihood of finding a point-of-sale system that will work for you and your business. 

BNG Point-of-Sale offers POS solutions that improve your bottom line. With a full selection of POS systems for various businesses, you’ll find the right tool to grow your business with the personalized support you need.

Connect with us to learn more.

 

 

 

14 Ways a Point-of-sale System can Benefit Restaurant Employees

The restaurant business is one of the most challenging industries to operate. It’s an ever-changing, fast-paced environment where mistakes can cost a lot of money. Implementing a point-of-sale system for your restaurant can help reduce these financial losses while providing other benefits that will improve the work experience for employees. Here are 15 ways that installing a POS system in your restaurant will benefit you and your staff. 

  1. Increased revenue:One of the primary benefits for restaurant employees working with a point-of-sale (POS) system is increased revenue. By utilizing a user-friendly POS solution, all restaurant staff can benefit from streamlined order management and customer service to ensure optimal productivity throughout the entire organization.

Example: A good menu design helps customers make faster decisions on what to order. The design can be made more efficient by putting essential information at the front of the menu, keeping it on one page, and avoiding unnecessary decorations or pictures that distract from a clear purpose for each item. 

  1. Improved customer experience:Customer experience is a top priority in the restaurant industry. Customers want to feel appreciated and valued by their wait staff, which can be accomplished through increased communication between all parties involved in meal service.
  2. Less burden on front-of-house staff:A POS system can help restaurant staff take back some of the work typically passed to them from other members in a chain. This reduces their stress and allows more time for each employee to concentrate on providing excellent service.
  3. Reduced employee theft:One of the main benefits ofpoint-of-sale systems is reducing employee theft. Employees are less likely to steal from an employer when more eyes are on them. This type of system is excellent for monitoring employees’ behaviors in real-time. When items don’t ring up properly or cash goes missing, it will be easy to look back at what happened during a specific transaction, which increases accountability throughout all levels within your restaurant. 
  4. Improved accounting accuracy and efficiency:By installing a POS system, restaurant employees will spend less time dealing with accounting and bookkeeping issues. The system is pre-programmed to collect thecorrect information for you to stay on top of your finances at all times without hiring an expensive accountant or taking up too much of your time trying to track down every transaction that takes place within your business. 
  5. Easier inventory management:A POS system can help restaurant employees keep track of their inventory, which is easier said than done in the chaotic environment that exists within a restaurant. Because it’s easy to lose track of things when you’re running around attending to customers and orders, having this type of technology at your fingertips will ensure proper use throughout all kitchen staff.
  6. Better control over product sourcing and procurement:APOS system will better control your product’s sourcing and procurement. You’ll be able to monitor inventory more closely, which means that if certain products are selling faster than others, you can adjust accordingly instead of continuing to acquire those items without being mindful of the overall demand from customers within your restaurant. 
  7. Boosted marketing ROI:The POS system is already programmed with the ability to take advantage of marketing opportunities. The software can be updated in real-time, which means that if your restaurant decides to run a special promotion or offer coupons through social media, it will be an easy process for you and your team members. 
  8. Improved financial reporting:Your POS system can make it easier for you to report financial information, which is a win-win situation. You’ll be able to provide your investors and partners with the updated data they need on an ongoing basis while saving money by not having to hire an expensive accounting firm or bookkeeper for this specific task. 
  9.  Enhanced customer loyalty and retention:The POS system allowsyou to see your customer’s behavior in real-time, which means after time has passed, you can better understand why they’re coming back or if there are other areas where improvements can be made. This information is invaluable because it allows restaurant managers and owners the opportunity to view their overall business from a customer’s perspective. 
  10. Easier, more efficient way to communicate with staff:The POS system is easier for managers and owners to stay in touch with their employees when they’re out of the building because it will keep tabs on what each worker does. At the same time, they are not present, which gives you a better idea about who works well together, needs more training or assistance, and is just plain lazy. 
  11. Real-time data:Restaurant employees will be able to access information in real-time, which means that they can make changes immediately instead of waiting for the end of the day or week. 
  12. Improved staff morale:The POS system will give restaurant employees more control over their workday. It gives them instant feedback on how much money is being made and what needs to improve throughout each shift. This system is less time-consuming and more efficient than putting together spreadsheets or waiting for weekly updates to make changes throughout the workday. 
  13. Improved customer service:A POS system can make it easier for managers and owners to reward their employees with more perks, benefits, or incentives to provide them with better opportunities within the restaurant. This type of technology also allows workers to change things if they’re feeling burnt out instead of continuing in one specific role throughout their workday. 

Final Thoughts

If you are a restaurant owner, the time has come to get on board with the point-of-sale systems. With so many benefits for both employees and customers, it’s hard to argue against this investment in your business. Implementing one can help save money by increasing efficiency during busy periods or replenishing food. It also allows staff members to focus more on customer service while freeing their hands from counting cash! Finally, these POS solutions offer an easy way for restaurants to track inventory levels which means less wasted product at the end of the day.  

BNG Point-of-Sale offers POS solutions that improve your bottom line. With a full selection of POS systems for various businesses, you’ll find the right tool to grow your business with the personalized support you need. Connect with us to learn more. 

 

Can You Have a Point-of-sale System and Merchant Services from Different Companies?

You’ve probably never considered having your point-of-sale system and merchant services from different companies. It sounds like an exciting idea. But are there any drawbacks to doing so? Suppose you have two competing entities providing these services for your business. What would happen if they had some disagreement or issue with one another? What happens when you need more than just one service provider to get everything that needs to be done for your company? 

Many questions come up when considering this topic. The benefits may outweigh the risks, but before deciding whether to pursue this course of action, it is essential to think through all aspects thoroughly. This article will explain the benefits of having a point-of-sale system and merchant services and some drawbacks if you choose to pursue this idea. 

Difference of POS System and Merchant Services

A point-of-sale (POS) system is the software and hardware that a business will use to process credit card transactions or any other types of electronic payments such as debit cards or NFC (Near field communication). 

The aim of having a POS system for your business is to replace manual accounting and sales recording. Typically, you would keep all sales and inventory in a notebook or paper. Still, you can do this much more quickly and easily with an electronic point-of-sale system. You can also easily save all data and transfer it into whatever type of spreadsheet program you prefer to use when doing taxes at the end of the year. There are even programs that allow you to manage expenditures and accounts payable, in addition to sales. 

You can also use a point-of-sale system for other things such as inventory management. For example, suppose you have multiple locations. In that case, it could be beneficial to know what items are selling well at which site to order more from one place and less from another. Some systems allow you to manage digital signage in addition to everything else that comes with a POS program. 

The credit card company itself usually provides merchant services. Still, a third party specializing in merchant services can also offer merchant services. They are called payment processors or PSPs (payment service providers). 

You will typically pay fees for each electronic transaction processed with standard merchant services through your account. The fees charged depend on the type of industry you operate in and the number of transactions you process throughout the month.  

Other ways to charge merchants for accepting credit cards include: 

Why Should I Get Merchant Services From the Same Company as my POS System?

Having a point-of-sale system and merchant services from the same company can be convenient. You do not have to sign with two different companies to get everything you need for your business. They will most likely offer better overall rates than two separate entities for these services. 

There are many benefits to having both POS and merchant accounts from one or more companies: 

There are some cases where it is okay to have separate point-of-sale systems and merchant account providers. Still, it is not recommended in most situations since having both from the same entity can save you time and money overall. 

Why Might You Need Two Different Companies for These Services?

There is little to no communication between the two entities when you get the point-of-sale system and merchant services from different companies. This means the rates they have negotiated for your business may be vastly different from one another, meaning that what you are paying per transaction will vary greatly depending on which company processed each sale or refund. 

Depending on the type of business you run, you may need to use two different entities for your POS system and credit card processing. For example, suppose you run a restaurant that takes in vast amounts of cash every day. In that case, having one company will most likely not suffice because they probably do not have merchant accounts set up with PSPs (payment service providers). The latter work with high-risk merchants such as restaurants. 

Another instance where you might need two different companies is if you require certain functionality which your POS does not offer but is offered by another provider. If this is the case, there is no point in signing everything with one company since they would operate entirely independently of each other. You can also end up paying more money for the point-of-sale system if you sign up with two different companies since they will be competing against each other to get your business; this means that you may end up paying higher prices for the program. 

How to Choose Between Two Different Companies?

Choosing between a virtual terminal company and a PSP with direct integration is not easy, especially when presented with all the benefits of each. 

First, you need to figure out what kind of business you run since this will determine if either option would be feasible for your needs. For example, does your store or restaurant take in a lot of cash daily? If so, a virtual terminal company will probably not be the best fit because PSPs (payment service providers) that work with high-risk credit card companies such as restaurants will most likely not allow you to use a virtual terminal. 

In cases where you need more advanced POS functionality and do not have a brick-and-mortar store, you should consider a PSP with direct integration and offers these services. This means not only will they take care of processing credit card payments but also allow you to process checks, invoices, and other types of transactions for your business. 

There are quite a few things to consider when choosing between virtual terminals and companies with direct integration. Still, the main point of deciding which company to go with is to find out what kind of transactions you will be processing. 

How Does Having Separate Merchant Accounts and POS Providers Work?

There are typically two ways to set up merchant accounts with different PSPs (payment service providers) and POS providers, either virtual terminal services or direct integration. 

Virtual Terminal Services – this is a service your POS provider will offer that allows you to run credit card transactions through an online system where the customer enters their payment information on your website rather than swiping the card at your store. It generally costs between 3-5% of each transaction amount, which is significantly lower than using most gateway companies directly. 

This option may be suitable for businesses with no physical locations but still want to accept credit cards, even if it is only online. However, since all sales are made online, you will receive significantly fewer additional benefits for discounts or other special deals offered by the PSPs. 

Direct integration – this is a process where your POS provider has an agreement in place with one or more credit card companies and their PSPs (payment service providers), which allows them to offer their services directly through your software system. 

You and potential clients of your business need to know how these types of transactions work because depending on who you are using for merchant services and point-of-sale, they can vary significantly in terms of pricing and overall expense. For example, if you choose a virtual terminal company that does not work with many PSPs, you could pay between 4-5% of each transaction, which is the same as working with most gateway companies. However, if you used a PSP specializing in virtual terminal services and directly integrated with your POS provider, you would only pay 2-3% for every transaction. 

Benefits and Drawbacks

Many businesses find it easier to have one company handle their POS system and merchant services needs. This is because the company has an in-depth knowledge of both systems, so they can provide you with all of your needs without wasting time switching back and forth between service providers. 

When considering having POS software and merchant services from the same vendor, some benefits exist when comparing this to using separate entities. Still, it is also not always a risk-free proposition either. 

Benefits of using one entity for your point-of-sale system and merchant services: 

  1. Fixed Resource Pricing
  2. Reduced Implementation Time and Costs
  3. Reduced Customer Service & Support Costs
  4. Simplified Recurring Billing and Collections Processes for Merchants, Retailers, and Customers
  5. Proven Technology Integration and Software Development Experience in Custom POS-to-PSP Programs

Some of the risks associated with using different entities for both POS system and merchant services needs:  

When looking for a point-of-sale system and merchant services from different companies, some benefits exist when comparing this to using separate entities. Still, it is also not always a risk-free proposition either. 

  1. You may have an outdated system
  2. It might bechallengingto integrate the two systems 
  3. The customer experience could suffer as a consequence
  4. Theft and lost opportunities for cash backup
  5. Not having these services from the same vendor can lead to missed or inaccurate reporting

Questions to Ask Before Signing up for either Company or Service

When looking for a point-of-sale system and merchant services from different companies, you should always ask yourself: What type of transactions does my business process? Do we need to take in a large amount of cash daily or run other types of high-risk credit card processing? Do I need advanced functionality such as check processing, invoicing, and different kinds of transactions? This company allows me to use the virtual terminal(s) with PSPs (payment service providers)? Is direct integration required to provide the best processing fees/rates? 

These questions can help you decide which provider is better for your unique needs. If you are having trouble deciding between the two options, make sure to conduct extensive research by reading reviews, checking out different companies online, and learning more about your options. 

Conclusion

You may or may not benefit from having a single company handle your POS system and merchant services needs, as there are trade-offs to consider before making this decision. Do some online research on different companies before signing up, read reviews before committing to any single vendor, and compare rates offered by small businesses and larger entities to benefit from the most competitive processing rates possible. 

BNG Point-of-Sale offers POS solutions that improve your bottom line. With a full selection of POS systems for various businesses, you’ll find the right tool to grow your business with the personalized support you need. Connect with us to learn more. 

 

 

How to Utilize Cloud Computing with your Point-of-Sale System

All the business benefits of utilizing a point-of-sale (POS) system multiply when combined with the capabilities and opportunities of cloud computing. This additional software ability can maximize the effectiveness of a POS system for a business and contribute many positive solutions of its own. Customers, business owners, and employees alike will appreciate the features that make cloud computing systems better, faster, and more robust.  

What is Cloud Computing Software?

The cloud is an online-based data storage software that’s secure and accessible from anywhere, at any time. The cloud allows for data to be stored, accessed, and analyzed within an online platform, offering more flexibility and options for users. A system or device that utilizes cloud computing provides a way to “cut the cord” from hardware storage solutions and offers a range of other features that business owners can apply.  

Cloud-Based POS System

A POS system based on cloud computing software abilities opens the door for users with multiple storefronts, both in-person and online, to compile essential data on transactions, inventory, labor, productivity, and much more all in one secure, accessible place. The software analytics of a cloud POS system can develop valuable reports and data insights for business owners to use for informed decision-making.  

Benefits of a Cloud-Based POS System 

For a company that also utilizes cloud computing, a POS system can combine these features with the many helpful attributes of cloud computing software.  

Accessibility

Hardware storage system restraints break down with cloud-based POS computing systems. By storing all data and information in an online cloud center, staff can view insights and reports from any device at any time.  

Cloud-based reports also allow for convenient data and report sharing with approved members of the business or outside sources. Instead of downloading needed information from a hard drive or device, cloud computing allows for easily gated access to specific data or sharing of files when needed.  

Convenient Storage Location

Keeping data straight and organized when a business has multiple locations can be a challenge for business owners. Whether a business has a few locations around an area or even a solid online sales presence, having all the data and insights a POS system can automatically collect stored in one place makes analyzing and using data insights so much easier. Streamlining the data collection process saves both time and money for companies as they grow and move toward increased sales and profits.  

Security

Data and information are some of the greatest assets a business can have, but they can also be challenging to protect. With the rapid growth of cybercrime and online hackers, security must be a top priority. In addition to the threat of cyber theft, data can also fall victim to failed backups and crashes that come with a hardware storage system.  

Safety and security are significant benefits of cloud computing services because of the internet-based location. Since the service doesn’t have a hardware element to store information, your data is safeguarded from hardware crashes or physical damage.  

Cloud computing services’ online nature also provides access to integrated cyber safety applications. Cloud services typically store data over a range of servers, keeping information safer from system failure. Cloud services also typically provide cyber safety measures to counteract threats to your information.  

Cost Savings

There’s a reason we’re no longer storing information on floppy disks or bulky hard drives. There’s a better way now! Businesses could still be struggling with outdated devices or systems that constantly need updates. These updates can take serious time, keeping your system from operating while they download. As these software systems become more advanced, they can require newer hardware to keep running storage systems and collecting POS data. These constant updates start to add up on the budget sheet over time.  

The online nature of cloud computing with a POS system means freedom from costly updates and constant software uploads. Cloud systems can automatically update with the newest technology without costing business owners time and money with each new advancement.  

POS System Updates

In addition to the many software advantages of a cloud computing POS system, this type of setup also allows for additional capabilities and more versatile options for devices on the front end of a transaction. This process can allow more freedom with transactions on devices. Instead of stationary hardware systems that take up space on a counter and typically come with a list of limitations, cloud computing POS software opens up the possibility for mobile devices, tablets, and modern touch screen monitors. Fewer limitations mean employees can be mobile within a store and still perform transactions and clear up the look of a front counter area.  

More than just an esthetic upgrade, POS mobility makes outside sales a real possibility for some businesses. Staff may take the POS transaction device to a trade show or a sales event to broaden the scope of sales and gain new customers in various settings.  

Utilize Cloud Computing

Both POS systems and cloud computing software come with a range of benefits for business owners to utilize. When the capabilities of both systems are combined, the possibilities are endless for growth, productivity, and revenue.  

Some POS systems run seamlessly with cloud computing software—which is the fastest and easiest way to get all the benefits of a cloud computing POS system for a business. Setup is quick, and the services are typically available immediately.  

Suppose a business already has a POS system in place and wants to gain the advantages of cloud computing. In that case, many systems can be equipped to run cloud computing and storage software with the existing hardware system.  

Whether setting up a new system or upgrading an existing one, an investment in a cloud-based POS system can enhance business productivity and security. 

BNG Point-of-Sale

BNG Point-of-Sale has solutions to improve your bottom line. With a full selection of POS systems for various businesses, you’ll find the right tool to grow your business with the personalized support you need.  Connect with us to learn more.

 

 

How to Report Credit Card Fraud as a Merchant

Steps to Follow When You Suspect Fraud 

Credit cards are a top way to receive customer payments, but as a business owner you may receive a fraud claim or spot a questionable transaction. It pays to know how to handle these situations. Theft is all too common with credit cards, and you may be liable for fraud claims.   

This article shows you how you can report credit card fraud when it happens and explains how you can decrease your liability. 

What is Credit Card Fraud? 

Credit card fraud is when a credit card or related account information is used for purchasing goods or services without the cardholder’s permission. It can be from a stolen card, misappropriated card number, or forged card. 

Are Merchants Responsible for Fraud from Credit Cards and Debit Cards 

When fraud happens, there is a charge to cover fraud services in addition to recouping the customer’s losses. These charges fall to either the credit card issuer or you as the merchant. 

Online transactions and swipe transactions are high risks, which means you as a merchant are liable. The liability falls on the issuer for chip cards, and we’ll explain this later in the article. 

Additionally, if you don’t 100% follow an issuer’s fraud procedures, you increase liability. If multiple issues arise, you will also be categorized as a high-risk merchant by your merchant bank and processor, resulting in higher fees. 

Types of Credit Card and Debit Card Fraud 

There are three terms often associated with credit card fraud, each with liabilities. 

Card-Present Fraud occurs when a person is standing in front of you as you run the order. In this case, the card may be counterfeit or stolen, or the individual may verbally provide account details. In these situations, banks are typically liable, though you will still have to pay the standard transaction fee for that type of purchase. 

Card-Not-Present Fraud occurs when a person provides credit card details over the phone or online. Card-not-present transactions are considered high-risk purchases of which you will be liable. 

Friendly fraud is when a less-than-reputable customer makes the purchase but still disputes it as fraud. In this case, the customer will be liable. 

What to Do When  Credit Card Fraud Occurs

If the order was placed and you suspect fraud, the best course of action is the following: 

Delay Shipping 

When possible, delay order fulfillment for a few days so that you can get the verifications you need. If you fulfill and/or ship an order quickly, you may become liable for the transaction. 

Contact the Customer or Issuing Bank

Contact the customer by email or over the phone to ensure the order is authentic. You can also contact the card-issuing bank; they can reach out to the customer for verification. 

Contact Your Card Protection Service 

If you have a registration service/card protection service, contact them; this will help reduce the number of chargebacks you experience. 

Steps to Combat Credit Card Fraud

The best way to avoid fraud is by preventing it before the sale. Here are ways to do so: 

Look for Sales that Appear Too Good to be True

If a sale seems uncharacteristically good, such as overly large, and requests immediate delivery, you may suspect fraud. 

Require Multiple Forms of Identification

Ask for a driver’s license, phone number, and address associated with the card. You can also confirm the address by contacting the cardholder’s issuing bank. 

Call for a Code 10

Call the issuer’s authorization center and ask for a Code 10 authorization. They will assist with approval by providing any additional data you need and can also help by calling the police if necessary.  

Run Cards with EMV Chips

Europay, Mastercard, and Visa (EMV) chips are standard today and provide an added level of protection against swiping cards. In the case of card-present charges, you can be released from liability by using these newer chip readers instead of swipe technology. 

Consider an AVS System

An address verification system (AVS) requires the customer’s zip code and address number (not the full address) before each purchase. 

Require the Card’s CV Number

Requesting the CV number during a phone or online transaction means the customer is more likely to have the card on hand, reducing fraud risk. 

Offer Digital Wallet Payment Capabilities

Digital wallets reduce the need for physical credit cards while bringing added protections and approval requirements, such as thumbprint verification.   

Use Fraud Tools Provided by Your Payment Processor 

Your Payment Processor may have ways to detect fraud that isn’t readily apparent to you. Inquire with them about how you can reduce the risk of fraud. 

Update Your Policies and Procedures  

After a fraud occurrence, updating your policies helps ensure it doesn’t happen again. 

Follow the Rules 100%

Learn the rules set by card issuers, networks, processors, and your merchant account, so you know how to fulfill your obligations and limit liability. If you don’t, you can lose your merchant account and risk high fees for transactions. 

BNG Payments can Help 

Reliable payments from customers through a reputable payment processor benefit everyone.  

BNG Payments is payments processing made easy. Whatever your processing needs, we focus on security and make it easy for merchants to accept credit and debit cards, mobile payments, e-commerce, and more.  

Contact BNG Payments to find out what we can do for your business.

 

 

 

 

 

Are your Customers’ Payments Secure?

Do you Really Need Cybersecurity?

As a business owner, you likely already know how credit cards and ACH payments increase the chance of a sale while increasing the number and size of transactions. But, accepting payments through POS hardware and software brings questions about data security and risks. Just how important is it to protect yourself and your customers from cybercriminals? 

It’s crucially important. Strong security is not just nice to have; it’s required to abide by local laws and processing rules and contribute to continued customer growth. 

In this article, we examine why cybersecurity measures are vital to your business. We also provide ways to get started. 

What is Customer Data Protection?

Data comes in many forms, such as customer contact information, employee records, customer transaction records, and payment information—and all of this information is valuable to hackers. The data needs to be protected to prevent the theft of sensitive customers information. If your system is breached or data is stolen, hackers may resell the data to other hackers, create false identities to access banks or credit cards, and even hold account owners for ransom.   

Data protections are any measures you take to protect that data. Protections may include restricted access to information on computers and electronic devices and blocking access to hard copies. 

Why is Customer Data Protection Important?

The Threat is Real

Without protections in place, you are now more vulnerable to phishing and identity theft than ever before. According to Cybercrime Magazine, cybercrime is estimated to cost companies around the world $10.5 trillion annually by 2025. Cybercrime doesn’t only affect large businesses; small businesses are increasingly targeted, and 60% of small businesses go out of business after a cyberattack or data breach.  

Data Protection is Required by Law

Data breaches have led to increased concerns from customers and governments to set data protection rules. The General Data Protection Regulation (GDPR) for European businesses and the California Consumer Privacy Act (CCPA) are examples of such regulations. Additionally, half of all U.S. states have their own rules about data protection.  

PCI Compliance is Expected 

Payment Card Industry (PCI) compliance is a set list of standards set by electronic payment networks. These guidelines aren’t federally mandated but may better protect you from liability if a data breach occurs. If a breach occurs at your business, you’ll face higher rates from your payment networks, processor, and merchant account due to being deemed a higher risk.  

The good news is, PCI compliance is made simpler with a payment processor that prioritizes security.  

You Need That Data

Customer data is becoming essential for improved business performance and staying ahead of the competition. You can use it to improve your products and services to fit client needs better. You can also generate more sales with less effort through more intelligent and effective marketing efforts. 

You can even serve individual customers better, which is especially advantageous when you consider that repeat customers make up 25% of an average business.   

Maintaining Customer Trust is Vital 

Due to high-profile data breaches worldwide, businesses are increasing their protections. And, customers are warier of providing sensitive data. McKinsey and Company surveyed 1,000 North American customers and found that customers are becoming more cautious about providing information due to large-scale data breaches. They are also more prone to limit sharing their data to only what’s relevant to each business.  

It bears repeating, return customers make up 25% of a business’ average customer base, so providing security measures to alleviate their concerns is crucial. You want your customers on your side—not just to help you maintain your business but also to grow it by recommending you to their family and friends. If you don’t have security protocols in place, you could lose your customer base and severely damage your reputation. 

Customers often willingly provide their data with the understanding that it will be protected and not shared or abused. If customers have a poor experience with your business, they’re more likely not to return and spread the word, which could be detrimental to your business 

Maintain customer trust, and possibly even grow, by committing to better securing your customers’ information and having protections in place. Be more selective in the data you collect, and be transparent and honest about your data usage.  

How to Maintain Strong Cybersecurity

The following are ways to improve your cybersecurity. 

Maintain Current Security Software

Ensure your anti-virus, anti-malware, and anti-spyware software are up to date. Regular updates provide greater security. A managed service provider (MSP) can assist, but you may also set the software to update automatically. 

Encryption

Encryption disguises data, such as credit card numbers, birthdays, and addresses, by converting it into unreadable code that can only be translated with a key. Your payment processor can provide encryption for credit card data, and you can also use encryption to hide any data, even in emails. 

Block Access to Hardware 

Use secure passwords with more than eight characters and symbols and numbers. If you have a shared password, limit who has access and require encryption. 

For hardware, such as laptops, smartphones, and flashcards or USB sticks, have a dedicated location where these items are returned and locked. Any paper copies that have financial information should also be stored under lock and key. 

Boost Network Protection

If you have remote access to your internal server, invest in VPN technology. For even more flexibility, move your system to a cloud network with advanced protections and access restrictions. A trusted managed service provider (MSP) can help with this. 

Regularly Monitor Data

Know where all data is stored and regularly monitor to ensure there are no surprises or weaknesses to access data. 

Vary Security Levels for Data Access

Control access to data by allowing only certain employees to access specific data types for particular purposes. These safeguards limit paths for hackers. Employees are a chief source of data breaches, whether intentional or not. 

Limit Data

Gain customer trust while still fulfilling your marketing and advertising needs by limiting the data you collect. Less data means less value for a hacker. 

Formal Procedures and Training 

Train your employees to follow a list of cybersecurity guidelines, including opening, closing, and in-office procedures, as well as learn how to spot phishing and ransomware emails.

BNG Payments Can Help

BNG Payments helps businesses of all sizes. We assist customers with PCI compliance, payment data security, encryption, and other services.  

BNG Payments prioritizes payment security. Connect with us to learn more. 

 

 

 

 

 

 

How your POS System can Fully Integrate with Business Operations

A point-of-sale (POS) system is more than just a way to ring up customers. A POS can effectively integrate with other key business processes, make operations more efficient and act as the backbone of your business. A POS can bring all aspects of your business together with its integration features.  

Customers, employees, and your bottom line will benefit from a technology platform that provides real-time business data, decision-making insights, customer relationship management, and improved efficiency. Take your customer experience and business process to the next level with the integration potential of a POS system.  

What is a POS System?

POS is short for Point-of-Sale. This is a system and software designed to allow your business to accept quick digital and cash payments at the time of check out, track additional profits, provide actionable insight into data within all business areas, and much more.  

A digital POS system takes a traditional cash register to the next level. Beyond simply logging a transaction, a digital POS software uses your sales information to do more. It can analyze the profitability of an item, adjust inventory ordering based on actual sales volume, track products as they enter and leave your business, manage staff schedules, and develop business-enhancing programs centered around your loyal customers.  

Capabilities of a POS System:

POS Business Integrations 

Integrating business processes into one cohesive system allows business owners to make significant strides in their business understanding, progress, and revenue capabilities. Owners can use this more robust business picture to cut costs, improve labor, and develop business practices.  

Marketing Integration

An innovative and effective marketing strategy requires a deep understanding of the customer profiles that your business serves. A system that integrates data from all aspects of a business with marketing capabilities can help a business owner take their marketing campaigns in the right direction.  

One of the primary ways a POS system can meld together data and marketing comes with inventory sales tracking. This feature helps business owners understand what products encourage repeat business from their customers and what products could use an additional spotlight to grow sales.  

Perhaps most importantly, digital payment methods and customer tracking allow business owners to implement customer loyalty programs. For example, loyalty programs might include promotions, points that customers can accumulate toward discounts or free items, and coupons for returning customers. These efforts help to turn first-time guests into loyal, repeat customers who will share their experiences at a business with others.  

Storefront Integration

Whether you have multiple locations or an e-commerce platform, integration of all business storefronts can be integral to gaining a full scope and view of a business. Instead of gathering sales transactions and inventory information from multiple locations, a POS software system seamlessly collects data on all forms of payment. In addition, it collects business analytics, sales reporting, labor time clocks, and marketing efforts into a cohesive report for business owners to easily interpret.  

This automatic intake and analysis of data across physical and online stores open the door for business owners to begin understanding how sales locations interact with one another. With these reports and insights, business owners save time and make more informed decisions that benefit all facets of their business.  

Payments and Accounting Integration

From labor costs to effective inventory management, there are many ways an integrated POS system can identify and widen profit margins for small businesses. Information that allows for precise alterations within a business can impact productivity and the effective use of resources.  

When payment transactions are coupled with the speed of services and labor costs are associated with time-of-day transaction data, business owners can begin to make data-driven decisions on how best to use their resources. They can better understand what times of day they have the highest sales volume and what times they have slower sales to schedule labor and costs efficiently. Additionally, with documented, accurate items sales, management can precisely order inventory and avoid wasteful spending.  

Beyond decision-making insights, a POS system’s ability to integrate sales transactions and labor time clocks with accounting information allows a business to keep accurate financial records. Intricate knowledge of payments made and credits received can help business owners see where to cut costs and reallocate resources to achieve optimal revenue.  

Integration Efficiency

The ways a POS system can integrate within business operations are endless. Each of these integrations has its benefits and insights to give business owners a deeper view of their business operations and make informed decisions. POS system integrations also have significant impacts on a business’s overall efficiency and productivity.  

In a traditional system, employees and owners are forced to manually complete tasks, taking up time and exposing processes to human error. With an integrated POS system, data is gathered on all aspects of the business, time clocks are recorded, inventory is ordered, and sales transactions are automatically collected without spending additional time and manpower. Business owners and employees can instead focus their attention on daily operations and utilize the insights of an integrated POS system to save time, energy, and resources.  

Bring all aspects of a business together with the integration capabilities of a POS system platform for your business.   

BNG Point-of-Sale

BNG Point-of-Sale has solutions to improve your bottom line. With a full selection of POS systems for various businesses, you’ll find the right tool to grow your business with the personalized support you need. Connect with us  to learn more.