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POS Basics

Most point of sale software supports a large number of common functions: displaying the items and prices in a sale, handling taxes, returns, voids, payment options including credit card processing, layaways, discounts, accounting reports, and inventory tracking. Restaurant POS software allows creation of checks by diner or table, special orders, tracking orders per server, moving diners from the bar to a table, waiting lists, and more. It is safe to assume that any standard customer transaction will be handled by all major POS software.
The central component of a POS terminal is the computer than runs the application. Most resellers prefer to sell you a computer with the rest of the POS system, rather than having you supply your own - some even charge an extra fee if you supply the computer. The reason is that setup and ongoing support is much easier when the reseller is familiar with the hardware involved. Getting all the hardware from one source lets the reseller take responsibility for the entire system.
Having "clean" electrical power is a POS system necessity that many businesses underestimate. When you set up multiple POS terminals, they are networked together the same way computer systems in offices are. Fluctuations in the electrical supply due to blenders, meat slicers, microwaves, and other mechanical devices plugged into the same electrical circuit can easily cause enough noise in the power supply that will wreak havoc with POS computer systems.
There are two common solutions to the problem. Power filtering can eliminate troublesome spikes and noise before they get to your computer terminals. The more robust solution is to install a dedicated circuit with an isolated ground and use it only for your POS systems.
Power problems are one of the single biggest causes of problems in POS systems. Make sure your vendor analyzes your power situation and suggests appropriate safeguards.
When choosing your POS system architecture, you may want to look for a system whose software can run on any type of PC so you are not tied down to a particular vendor or platform. Some manufacturers use proprietary hardware, which gives you less flexibility to purchase upgrades and additional equipment from other sources. The primary advantage of proprietary systems is that the software is written specifically to work with one piece of hardware, ensuring seamless compatibility.
Input Devices
One of the first choices you will have to make about your point of sale equipment is whether to go with a touch screen or a programmable keyboard. Most businesses choose touch screens. The only market where keyboards are more popular is grocery stores, where the ability to program individual keys for specific item codes and prices is appreciated.
Touch screens are more intuitive to use than keyboards for many users. They also provide more flexibility in the user interface and programming. Most touch screens sold these days are based on flat-screen LCDs instead of traditional CRT monitors. While LCD touch screens are slightly more expensive (typically $600 - $1,000 instead of $400 - $500), they last longer, use less electricity, and take up less space. They also look much better. With both CRT and LCD displays, avoid "overlay" touch screens that are added on to regular monitors - they are more prone to breakdowns and add an unnecessary complication to your system.
When it comes to keyboards, some models are standard 101-key models that you find with any computer. Others are smaller, more POS-specific devices, such as the flat-panel membrane keyboards common in fast food outlets. Often, POS keyboards come with built-in magnetic stripe readers for processing credit cards. Programmable keyboards usually go for between $150 and $300.
No matter which you choose, make sure you consider the environment where it will be used. Both keyboards and touch screens are available with varying levels of spill- and dust-proofing.
Point of Sale Equipment: Scanners
All scanners work in the same basic manner, reading a bar code and sending the resulting numbers back to the computer. They typically connect to the system through Y-connectors called wedges that make them function as an extension of the keyboard. Bar code scanning improves speed and accuracy during checkout.
Low-end scanners are based on charge-coupled device (CCD) technology. These scanners are inexpensive, but usually have a very short range - the item being scanned needs to be 1 to 3 inches from the scanner. In a typical retail setting, that should be fine.
Laser scanners, which use a beam of light to read bar codes, offer better scanning ability with the ability to scan at longer distances. Some laser scanners are "autosensing," meaning they turn themselves on when an item is placed in front of them, scan the code, and then turn off again. Omnidirectional scanners send out 15 or 20 lasers simultaneously, letting you scan a bar code from any angle. And the top of the line are embedded scanners, which are omnidirectional scanners that are installed below a counter, as is common in supermarkets.
Other Peripherals
There are a number of additional types of POS hardware that may be necessary to meet the needs of your business.
Every POS system needs a printer to create credit card slips and receipts for customers. Many restaurants also use printers to send orders to kitchen and bar staff. There are two main types of receipt printers: dot matrix and thermal.
Dot matrix printers, also known as impact printers, use pins and an ink ribbon to print on regular paper. Dot matrix printers are fairly inexpensive, usually $200 - $400. They are better suited for use in kitchens, where the ambient temperature can be enough to prevent thermal printers from working effectively.
Thermal printers use heat and special heat-sensitive paper to generate receipts. They are slightly more expensive, ranging from $300 to $500, but they are faster, quieter, and generally more reliable because they have fewer moving parts.
Over several years of use, the higher costs for thermal paper are just about balanced out by the need to buy both paper and ribbons for dot matrix printers.
Cash drawers are... well, drawers you keep cash in, along with credit card slips, gift certificates, exchange receipts, and any other important paperwork. The most important thing to look for in a cash drawer is the sturdiness of its construction. They take a lot of abuse from constant opening and closing, and they also frequently serve as a shelf for a display or other heavy pieces of equipment. Look for eighteen gauge steel as a good benchmark minimum.
In most cash drawers, the signal to open the drawer comes from the receipt printer. If you purchase your entire system from one dealer, you will not have to worry about compatibility, but this can be a concern if you are purchasing components separately. Some cash drawers are more easily serviceable than others. Although the life expectancy of a cash drawer is measured in the millions of cycles, make sure you can replace the rollers, bearings, and other parts if they do wear out before then. Cash drawer prices range from $150 to over $300.
Customer displays, also known as pole displays, these accessories show item and price information to the customer. Some can show advertising as well. There is not much you need to know about displays - take a look to compare size and how the display looks. You do need to make sure that your software is compatible with the display's emulation, but again, if you buy an entire system from one dealer, this will not be a problem. Average pricing is around $200.
Next come magnetic stripe readers. Credit card processing is handled by the POS software so you do not need a separate credit card terminal. However, you do need a magnetic stripe reader to read the card itself. Often, keyboards and touch screens have readers built in; if your input device does not, you will need to purchase a standalone reader, which will set you back $75 - $150.
You may also want to add check readers to your system. Using magnetic ink character recognition (MICR), automatic check readers can quickly help you prevent fraud by verifying essential account information. Since personal checks are becoming a less and less popular method of payment, few retailers purchase check readers these days. However, if you see a significant volume of checks a reader can be a real time saver. Make sure that your software supports check verification before purchasing one.
Security to limit employee access to POS terminals is critical. The two most common methods are simple PIN codes and magnetic swipe cards, but these are both subject to abuses: PIN codes can be read over someone's shoulder, and swipe cards can be forgotten by employees, stolen, or lost. A new add-on many POS systems now offer is a tiny fingerprint ID box - just big enough for a thumb, the pad ensures that the right employee is able to log on - and no one else will.
All your equipment will need some point of sale software to run. The basic functionality of point of sale software does not vary much from one package to the next. However, as you add more features, the point of sale software becomes more complicated and costly.
Make sure you know what you need the software to do before comparing long lists of features. Draw up a list of the factors that make your business unique. What unusual purchasing programs do you have? Do you offer incentives that require very detailed or specific tracking? A good POS salesperson will ask you these types of questions to determine what software would be best for you - do yourself a favor and ask them of yourself beforehand.