POS Payment Processing, Explained

Introduction and Summary 

Payment processing is more complicated than it used to be. The days of doing business with cash, traditional credit cards, and paper checks are a thing of the past. The good news is that POS (Point Of Sale) systems can process all the different types of payments that you receive while boosting your efficiency and average order volume. Furthermore, the right POS system can help you tap into a whole new customer base.

But, before you choose a POS for your store or restaurant, you should know all the facts. In this article, we’ll explore:

  • What Is Payment Processing?
  • What Are Credit Card Processing Fees?    
  • Is Slice Register the Best Restaurant POS System?   

What Is Payment Processing?

Even though your POS system should be able to manage dollars and cents, payment processing refers to non-cash transactions. In other words, if paper isn’t involved, your payment processor will handle it.

What Payments Do POS Systems Process?    

Or, perhaps, we should say: What payments should be processed by POS systems? Not all POS platforms are created equally. If your POS software is outdated, you won’t be able to accept all of the payment types listed here:

Credit and Debit Cards

Obviously, this is a must for any restaurant. Still, it’s important to remember that the inner-workings of cards have changed dramatically in recent years. Most cards are EMV nowadays, which means they have a chip that cannot be read by older machines that only scan for the magnetic stripe. Some cards can still be processed by the mag-stripe alone. But, that won’t be the case for much longer. EMV translates to less fraud and credit card companies are keen on keeping chargebacks to a minimum. Of course, that’s also good news for merchants like you.    

Contactless Payments

NFC (Near Field Communication) payments seemed like a novelty when they first came out. Now, they’re a go-to for many customers, especially in the wake of the COVID-19 pandemic. Contactless payment makes checkout even faster, which is a major plus on both sides of the counter. 

Given the rise of NFC, you’d imagine that these devices come standard with all POS systems. Surprisingly, that’s not the case. Some POS vendors will try to charge you extra for contactless payment processing, so look for companies that include it in their initial pricing. Otherwise, you could be saddled with extra fees before accepting one of the world’s fastest growing payment options.   

Online Payments

It’s not just about which payment types your POS system can process.  The real question is: Can your POS software handle all of the online payments you receive?

In 2020, the majority of restaurant business came from pickup and delivery orders. Even with the return of dine-in traffic, online ordering volume is expected to climb with every passing year. Meanwhile, some POS systems are not equipped to sync with all of your ordering channels. If you take orders from online ordering providers, your own website, and other services such as Google Food Ordering, you’ll need a POS to match.

Loyalty Points

Rewards programs are a surefire way to keep restaurant customers coming back for more. They’re also a pain to process, unless you have a POS system that can process all of those points. Remember, the average consumer belongs to about 15 loyalty programs, but they’re only using about seven of them actively. To ensure that you’re in the active group, you need a POS system that can keep up.  

What Are Credit Card Processing Fees?

Credit card processing fees are paid on a per-transaction basis by the merchant. The rate, which should be clearly laid out by your provider, will include interchange fee — a fixed amount, plus a percentage of the transaction. Plus, there are also assessment fees, which are paid to the credit card company (i.e. MasterCard or Visa).

There’s also the variable of card-present vs. card-not-present sales. Usually, there’s a slight difference between the two. Since card-not-present sales include online ordering, it’s crucial to choose a POS vendor with a reasonable fee for those transactions. Otherwise, every pickup or delivery order will eat into your profits.

Is Slice Register the Best Restaurant POS System?  

Unlike other POS systems, Slice Register was built exclusively for pizza restaurants. Previously, shops were forced to settle for overpriced systems that were better suited for large corporations. Now, pizzerias are turning to Slice Register for reliable payment processing, easy online ordering integration, and industry-leading marketing tools — all with small business-friendly pricing.

Visit today to learn more about the payment processing solutions you need to thrive.

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