Electronic point of sale (EPoS) terminals now come with options that can help train your staff, keep tabs on sales and reduce fraud. Knowing what features to look for and what to implement will help you make the most of your business in the long term.

What is an EPoS terminal?

An electronic point of sale (EPoS) terminal is essentially a cash register (an old fashioned till) but with new features that make it smarter and easier to use. EPoS systems can offer different benefits including the ability to deal with credit cards and barcodes, and to hook into stock control systems.

How does it link to clearing services?

The EPoS system you use should be connected to a payment terminal which will then connect to a processing service (or “clearing house”) so that the payments you collect can be reconciled with customer accounts. One of the most popular payment processing services is Streamline (www.streamline.com).

If you rent a payment terminal from the bank, then you will automatically use the bank’s payment processing system. Generally, the cost of the payment processing service will be factored into the monthly equipment rental cost. But, if you buy your own payment processing terminal, it is possible to choose your own payment clearing service, shopping around to find the best price for payment processing services.

Some EPoS suppliers offer a payment processing service as part of their equipment sale. Retail Logic, for example, uses a chip-and-PIN system called Apposite, aimed at smaller retailers and hospitality merchants. It does all card processing on its own mainframe computers, using a chip and PIN-compliant system.

What is chip and PIN?

Chip and PIN (www.chipandpin.co.uk) is a system introduced by credit card suppliers in 2003.

The suppliers were concerned about the growing level of credit card fraud, which was symptomatic of poor security surrounding cards with magnetic stripes and written signatures.

The credit card suppliers decided to put electronic chips directly onto the cards. EPoS systems that are able to read these chips require the customer to enter a personal identification number (PIN) to confirm that the card is theirs. This makes it much more difficult for cards to be copied, unlike magnetic stripe cards which could be copied very easily using off-the-shelf equipment. And while it is possible to forge a signature, it is more difficult to acquire a secret PIN. Credit card companies hope that this will cut down on fraud.

How will it affect my purchase?

An EPoS system supporting chip-and-PIN technology must be able to interface to a separate card reader. While it is not mandatory to support chip-and-PIN technology, more retailers, restaurants and small hoteliers will support the technology in the coming years because it helps to protect them and their customers against fraud.

On 1 January, the credit card suppliers stopped accepting liability for credit card fraud from payment processors who did not possess chip and PIN-enabled terminals.

If you own a compatible terminal, you are still protected from fraud, even by people using cards without chips. If you decide to purchase a chip and PIN card reader to interface with your EPoS system, you can expect to spend a few hundred pounds on this extra fraud protection.
What features should I be looking for in an EPoS terminal?
If you are in the market for a new EPoS terminal, make sure that it is capable of interfacing with a chip and PIN card reader. Also, small hoteliers will want to focus on ease of use, as they will be unlikely to have a dedicated IT specialist at hand. Your EPoS system should make configuration easy: people should be able to set up new items and enter new prices for products into the system without help from the supplier.

Other features will help in a busy establishment, says EPoS supplier Stewart Roberts Associates. Look for the ability to split a bill equally between all members of a party, switch a bill to another table, and perhaps the facility to support loyalty or member card swipe systems if your establishment is to offer promotional deals for regulars.
What about a touch screen?

Touch screens have dropped drastically in price over the past few years. Cash registers which use traditional physical keys offer limited configuration capabilities, whereas touch screen EPoS systems offer a variety of different features, including the ability to add new items on the fly, use training modes for new staff members and increase the number of products accessible through the system, using dynamically changing screens. Built-in reporting (so that you can analyse sales) also becomes possible when using a touch-screen system.
Should I link the EPoS terminal to an inventory system?

Proper stock control can increase the efficiency of your operation.

EPoS supplier Sharp Electronics believe that a business turning over £500,000 a year can increase its gross profit by 3% if it uses a stock control system. It adds that apart from the faster service and better pricing control, the stock control system will probably pay for itself in the first year. Some systems will offer stock control facilities built into an integrated system, but you can also buy software that hooks your EPoS system to separate accounting software.

Should I lease or buy the EPoS terminal?

Leasing an EPoS terminal will help to spread your cost over a period of time, and can be useful if you think you need to upgrade in the future. On the other hand, if you buy a well-designed touch-screen system it should last your business a long time because it will be flexible and able to offer more options as your business grows.

When it comes to payment terminals, renting gives you the reassurance that the bank will maintain the equipment for you but it ties you into that bank’s service. Purchasing puts the onus on you to service the equipment but gives you flexibility in choosing a payment processing service.

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