buyer’s guide to point of sale...

1

Buyer’s Guide to Point of Sales Systems

Buyer’s Guide to Point of Sale Systems

2


3


Table of Contents

1 Credits 4

2 Welcome to the Search 4

3 The Fundamentals 4 3.1 Software 5

3.2 Hardware 7

3.3 Payment Processing 8

3.4 Value Added Services 9

3.5 Support 9

3.6 Warranty 9

3.7 Software Licensing Models 10

3.8 Infrastructure 11

3.9 Accounting 12

4 Choosing the Right Solution 13 4.1 Return on Investment 13

4.2 Payment Processing Rates 14

4.3 PCI Compliance (PA-DSS Certified Applications) 14

4.4 Total Cost of Ownership 15

5 Questions to Ask Your Solution Provider 16 5.1 When should I place my order? 16

5.2 Please explain the implementation process. 16

5.3 What do I need to do to prepare my site for the POS installation? 16

5.4 How long will it take to learn the software? 16

5.5 How will this system save me time and money now, and in the long term? 17

5.6 Will it grow with my business? 17

5.7 What happens if my server fails? 17

5.8 What happens if a peripheral fails? 17

5.9 Is anything missing on the proposal that you would recommend? 17

5.10 How many stations do I need? 18

5.11 What are the advantages of integrated payments? 18

4


1. CreditsResources for this guide have been provided by Mercury Payment Systems® (www.mercurypay.com).

Mercury®, founded in 2001, is a service-centric merchant services company that specializes in integrated payment processing for small-to-medium sized businesses. Mercury works with thousands of resellers and developers to offer small and medium size businesses a comprehensive portfolio of integrated payment products and services that help control costs and increase revenue. The knowledge contained in this document is derived from years of experience working with merchants and POS solution providers.

2. Welcome to the SearchA well-selected POS system is a valuable asset to any brick-and-mortar business. POS systems allow broad management of business operations including inventory, pricing and sales, employee management, and much more. POS systems reduce man-hours required to operate a business while increasing security and minimizing losses from human error. Finding the right solution for your business is important for sustained success.

This guide is designed to help inform business operators about the core concepts of selecting a POS system. We have spent many years in the trenches of the POS industry, addressing issues of usability, user adoption, business process, and support services. We hope to empower you with tried-and-true advice that can help you select the appropriate solution for your business. The following pages come from years of consultations and customer feedback. Welcome to the search!

3. The FundamentalsA POS solution involves much more than purchasing a software license and installing it on a desktop computer. It can be tempting to try to save money by purchasing components and installing software without hiring a solution provider. This can save a little money up front, but once the business is in operation, you may find yourself increasingly burdened with the responsibility of technical support and training. Most of all, you will likely only be able to leverage a small percentage of the power within the POS software without being aware of the system’s full capabilities and best practices.

For each component, or peripheral, of the system to function properly, it must be expressly compatible with the software. If you do not

Finding the right solution for your business

is important for sustained success.

5


have experience in this field, it can be very challenging to choose compatible components and experience an easy implementation.

IT professionals are often the most surprised to find that their skills have gaps in this niche segment of technology, unless they have been specifically trained in POS solutions. The following are explanations of the breakdowns that can occur among the major elements that make up a POS solution.

3.1 SoftwareThe POS software is the heartbeat of the POS solution. Workflow is the key word to keep in mind when searching for POS software. The application must be able to accommodate your employees’ daily tasks. Each industry has its own unique workflow requirements. In the POS world, an industry is called a “vertical.” Examples of hospitality verticals include table service restaurants, quick service restaurants, bars, nightclubs, cafeterias, and even food trucks. Retail has the broadest number verticals such as grocery, convenience stores, liquor, tobacco, gift, jewelry, bicycle shops, consignment, game and media trade, etc. Then there are consumer services such as salons, spas, rentals, laundry mats, membership clubs, and repair shops. Each vertical needs a specific type of POS application tailored to the needs of that vertical. The list is as diverse as the transaction list on your credit card statement.

Some POS applications are only suitable for a single vertical with specific workflow procedures pre-programmed into the system. These can work fine as long as the business procedures are aligned with the standard practices of that vertical. However, if you decide to make a change to your business model to enhance your competitive edge, then you may quickly find that your POS software is no longer able to adapt to new workflow requirements. These details are seldom discovered at the time of purchase.

It is increasingly common for businesses to coexist in the same space to draw more traffic and increase sales, by offering complimentary products or services under the same roof. For example, a grocery stores may sublease facilities to third party vendor such as a bank, and a table service restaurant may also feature a gift shop. A POS solution can help track profitability and sublease commissions.

Comparing Software Features, “Apples to Apples”When you are evaluating your options, make notes on each of the topics listed below, to help determine which solution will be best for your business. Try not to let a sales person sway you from making the best decision for such an important component of your business.

The POS

software is the heartbeat of the POS solution. Workflow is the key word to keep in mind when searching for POS software.

6


Security – Make sure you have the ability to limit access to the system, based on job roles or user groups

Inventory management – The system should help you keep track of inventory levels as you sell, allow for split ordering cases into units for sale, and perform physical inventories and account for shrinkage. Understand whether the inventory is managed as “average cost” or “FIFO” (First-In-First-Out).

Bulk changes – Well-designed software will make it easy to change a common feature on many items in the database at the same time.

Loyalty and marketing – Surprisingly few business operators take advantage of a loyalty solution in their POS software. Have a plan in mind when you are shopping and make sure your software can successfully implement the plan. Robust solutions have a myriad of capabilities. The ability to communicate with your customers via SMS and email from the POS solution is more time and cost effective than using third-party tools. Make sure you can filter customers by criteria for targeted campaigning.

Cashier functions – Most problems with cashier usability involve two primary issues: money handling procedures and the ability to make modifications to products and functions on the cashier screen. Make sure you are comfortable with the cashier procedures. Find out how flexible the main screen layout is so that you can make changes as needed.

Cost management – Profit margin management is key to evaluating the profitability of your business. If you do not have a strong method for tracking cost and adjusting price to reach your target margins, you will spend most of your time fighting the POS system or guessing on how to price items.

Reporting – Every business needs a combination of standardized reports, along with the ability to create custom reports. Many providers will claim their systems offer custom reports, but they may not be what you need. Ask for a demonstration so you can see if it will work for you. The system should offer some middle ground between canned reports, reporting wizards, and a custom query. Some systems are very difficult to navigate and often require additional purchases or third party software for reporting.

Audits and notifications – As a business owner, you live a demanding life. You are constantly on the watch for security breaches, fraud, inventory and supply chain issues while trying to manage your

Profit margin management is

key to evaluating the profitability

of your business.

7


daily duties. With audit trails and notifications, you can implement an automated system of checks and balances. Let the POS system monitor the transactions and notify you when issues arise.

Fail-safes – You can spot budget POS software when it no longer functions if the server (or primary computer) crashes. At a minimum, it can take 24 hours to repair a server; it can easily take a week if you haven’t prepared for this kind of disaster. Make sure your POS system has the capability to make automatic external data backups. An even better option is to have all the POS stations/terminals run autonomously even if the server fails.

Stability – Familiarize yourself with the database type (Microsoft® SQL Server™, MySQL™, Sybase®, Pervasive PSQL™, etc.) and core programming bases (.NET, VB 6.0, etc.). Another thing to consider is the frequency of new patch releases, and future access to bug-fixes and feature upgrades. Monthly releases and fixes are common, as well as short-term releases for feature enhancements.

3.2 HardwareThe system hardware typically involves the computer and/or touchscreen and various peripherals that work in conjunction with the entire system. Equipment designed for POS environments is usually a little more expensive than those intended for home use or business office environments. There are several reasons for this.

Serial (COM) ports - POS Peripherals such as printers, pole displays, and PIN pads are designed to connect to serial ports. Serial ports are a legacy in the computer world. They are known for their high reliability because they allow devices to bypass the need for Windows® drivers, and can receive direct communication from a program. This eliminates many reliability issues on mission critical devices.

Other ports - While an office computer may only require a mouse, keyboard, and a few other USB devices, POS terminals require many peripherals such as receipt printers, barcode scanners, cash drawers, customer facing displays, magnetic stripe readers (MSR or card swipe), and debit PIN pads. Often these have different interface types such as Parallel (LPT), Ethernet (RJ45), Cash Drawer Ports (RJ11), PS2 or USB for a mouse and keyboard.

Harsh environments - Restaurants and retail shops are very harsh environments for electronics. Heat, dust, grease, moisture, and rough handling all take a toll on devices. POS-hardened computers often list a dust and moisture rating. Many are designed with solid-state drives

Have a plan in mind when you are shopping and make sure your software can successfully implement the plan.

8


and heat syncs to eliminate moving parts and increase equipment life. They will also tend to have slightly less CPU power, RAM, and hard drive space because of these design efforts.

Handheld devices often include a drop test rating, and many receipt printers are designed to protect against liquid spills. If your business is not environmentally controlled (i.e., warehouses, food trucks, etc.), make sure that the equipment you purchase can operate in the temperature and humidity that it will experience. Consumer devices, like the increasingly popular iPad®, are designed without any of these retail hardened benefits.

Manufacturers’ websites commonly publish information about the environmental durability of their products. When building or remodeling your facilities, install four to six power outlets per computer terminal, as each peripheral will require an outlet along with the actual computer. The best approach is to use power backups with a constant battery charge for surges or outages. They typically have 15-20 minutes of power stored and allow for four to six outlets.

3.3 Payment ProcessingFor optimum efficiency and accuracy, the practice of processing credit cards should happen internal to the POS system, not externally. The POS solution must have the capability to integrate with merchant services. Most POS applications have two types of integrations: direct and middleware. With a direct integration, you can select specific merchant services and key in your merchant settings directly on the POS application.

With a middleware integration, an additional software application must run on the system to interact with the POS software. If the additional software is designed by the same POS software company, it should be ready to use. However, if the middleware is designed by a third party, it is strongly advisable to either choose a merchant services provider that directly integrates to the system, or to choose another POS software that has a direct integration with your merchant services company.

Middleware designed by third parties takes longer to set up, and diagnosing and repairing payment related problems takes twice as long. Instead of collaborating to solve the problem, a lot of finger pointing can ensue between the support agents at the POS software company and the middleware company. It is worth finding out other users’ experiences with third party middleware – especially when it comes to payment processing.

For optimum efficiency and accuracy, the practice of processing credit cards should happen

internal to the POS system, not externally.

9


3.4 Value Added ServicesAlthough often overlooked, value added services play a vital role in the initial setup of your POS solution. Examples include menu programming, inventory imports (SKUs and physical counts), credit card setup, technical support, and initial and ongoing training. Quality and cost of services range widely from one POS solution provider to the next.

Some providers only offer turnkey solutions with all services bundled into the cost, while others offer services a la carte. Neither way is necessarily better than the other. What matters most is that the provider has a solid reputation for providing quality service in a timely fashion. Read reviews of the providers you are considering and ask about the services included in your proposal as well as any recommended a la carte services.

3.5 SupportTechnical support services vary widely among POS solution providers, and POS systems are highly complex. Problems can stem from faults in the operating system, local area networking (LAN) or POS security settings, as well as procedural mistakes, hardware failures, internet service provider (ISP) failures, and programming bugs. Some solution providers claim their support plans cover the entire system but will not assist when the problem becomes a complex mix of multiple factors. The most frustrating thing to hear from a support technician is that the software is working fine, and to call someone else for help.

We recommended that you find out about the scope of customer and technical support before you make a purchase. When problems happen, fast resolutions can save the day. Ask a lot of questions. Is support included in the price of the system you are purchasing? Do you need to purchase a supplemental support contract? Is support available during the hours your business is open? It can be especially beneficial when a dealer offers support contracts that work in conjunction with a payment processor’s support services.

3.6 WarrantyThere are essentially three methods to service a warranty claim: onsite repair, offsite repair, or outright exchange. Repair, or depot, warranties usually carry the lowest cost, but the turnaround on warranty service can be very long because the damaged device must be shipped off for repair and shipped back to the place of business. Minimum turnaround time is usually around 7-10 business days for this type of warranty. Onsite repair is usually faster, but is reliant upon a local technician who has the required part on hand.

What matters most is that the provider has a solid reputation for

providing quality service in a timely fashion.

10


Exchange warranties usually cost more, but provide very fast turnaround time since the faulty device is exchanged for a working unit overnight. Exchange warranty contracts are often nixed from the final quote to save money. But, keep in mind that exchange warranties are like auto insurance – you cannot purchase them after the problem has occurred. POS equipment is very specialized and cannot be replaced at your local electronics store.

Your best bet is to have a good exchange warranty in place for your system. In hindsight, many business owners realize the cost of lost productivity and customer goodwill from a single defective device is much higher than the price of an exchange warranty. Like technical support, you will be best served if warranty contracts are fulfilled through your solution provider.

3.7 Software Licensing ModelsThere are many different ways that POS software is licensed. Depending on your business structure, one may meet your specific needs better than another. Following is a list of single purchase methods:

Per instance: A license is required for every computer on which the software is installed.

Per POS terminal: A license is required only for the point of sale terminal, allowing for unlimited free licensing for back office management users.

Per user: A license is required for each named user that will need access.

Per concurrent user: A license is required for each user that may require access at any point in time.

The above models focus on a lump sum licensing fee; the technical support contract or “maintenance” is billed as an additional fee to be renewed each year. In some instances, if you let your maintenance contract expire, you must “come current” before you can renew the contract. This means that you must pay for every month that your contract has been expired in addition to renewing the yearly contract for the next 12-month period. If you have an urgent need after hours, it can be very difficult to renew a maintenance contract until the next morning, causing significant delays in solving the problem.

With a subscription-licensing model, you often pay a low monthly fee, which includes both licensing and technical support. The upfront cost of purchasing the software is significantly diminished with a

Modern POS systems are not glorified PCs and should not be

installed, nor supported as such.

11


subscription-licensing model, which typically mitigates the risk of a late night contract renewal or “come current” requirement. Pricing for this model may be based on any of the single purchase methods listed above, but the billing occurs monthly. Another benefit is that with no contract duration you can try out the software with less commitment and risk. Usually this puts the provider on the hook to ensure you are pleased with the subscription and continue with it.

Subscription licensing is often associated with software as a service (SaaS), which are solutions that are accessed via the cloud. However, subscription models also exist for locally installed software solutions and provide a lower cost to entry than traditional licensing models.

3.8 InfrastructureMobile tablet POS solutions have been all the rage in recent years. Most of these solutions involve a web portal for setup and management, and use a tablet or smartphone to record sales. This type of infrastructure, in which data is accessed using off-premise resources, is called “cloud” or “Software as a Service (SaaS).” This means that the solution is typically internet dependent.

SaaS offers a very low startup cost and ease of use for new merchants whose primary goal is tracking sales revenue. It is also very handy if there are no permanent business facilities where free-standing POS terminals can be installed, and when business is conducted on the move.

The primary concern when choosing an SaaS model is that if your internet connection fails, you are unable to conduct business until the connection is re-established. That may be as little as a few minutes or as long as to several days. If internet providers promise 99 percent uptime, you could potentially experience nearly 88 hours of downtime per year. And if your connection does go down longer, there is no financial compensation offered for the loss of business.

Another concern with SaaS solutions is that it may be challenging to connect and support peripheral devices. Because tablets and smartphones do not have many options for peripheral port connectivity, many providers are developing wireless and Bluetooth® peripheral options. While wireless technology is very commonly used in consumer technology, it may not be as robust as cabled connectivity. The solution becomes susceptible to wireless interference from construction materials, other wireless signals, dead spots, and wireless access points requiring routine reboots.

To reduce dependency on the internet connection, most businesses rely on the on-premise infrastructure approach. With this approach,

Mobile tablet POS solutions have been all the rage in recent years. Most of these solutions involve a web portal for setup and management, and use a tablet or smartphone to record sales.

12


all equipment needed to operate the POS system is installed at the local facility. In general, one computer is set up as the server station housing a database, and all other computers in the network connect to the server to synchronize inventory and sales data.

Traditional POS computers connect to the server using a LAN and cabling and provide plenty of connection ports for peripheral devices. If tablets and handhelds are employed with this approach, they can connect to the server and shared peripherals locally using a wireless connection provided on the network. on-premise systems traditionally offer more robust POS functionality than basic SaaS solutions. Device connectivity plays a big role in this enhancement. That’s because human interaction is crucial at the point of sale. Devices are the primary means of this interaction.

By far, the most versatile type of infrastructure is a hybrid cloud approach, which takes the best attributes of SaaS and on-premise functionality and combines them into one solution. Hybrid cloud allows users to easily access a management and reporting portal via web browser from anywhere with connectivity. It also maintains an on-premise infrastructure for reliability. The on-premise database synchronizes with the SaaS technology to provide one fluid experience.

3.9 AccountingAccounting integrations are a common concern among business operators considering a POS solution. If the POS software has a direct integration for accounting, it is likely that the integration is with QuickBooks®. Some solutions will insert a sales and cost journal entry, while more advanced integrations may be capable of importing complete customer and invoice details.

Be aware that advanced integrations can be very difficult to implement and support, and may not provide as much benefit as expected. Sometimes just having strong reporting capabilities in the POS system is faster and better than an integration. Ledger line reporting can be easily developed within a POS system with quality reporting tools, and entered by hand as needed.

QuickBooks publishes an Application Programming Interface (API), which establishes the communication rules required for another software program to pass information to QuickBooks. As QuickBooks creates new versions and adds features, the API rules change. This means that the POS software developers must constantly update their software so that the POS system can perform the same functions that worked on previous versions. If you decide to take this approach, make sure that the version of QuickBooks you plan to use is compatible with the POS software.

By far, the most versatile type of infrastructure is a

hybrid cloud approach, which takes the best attributes of SaaS and on-premise functionality and combines them into one solution.

13


In large businesses, an Enterprise Resource Planning (ERP) solution is used to manage all aspect of a company’s procurement, distribution, financials, manufacturing, human resources, and customer relations. In this scenario, it’s best if the POS system either has very strong reporting capabilities as mentioned above, or the ability to integrate directly to the ERP system. This is a much more technical and costly process, but well worth the expense in the long run in order to automate financials transfers from the POS to the ERP.

4 Choosing the Right SolutionNow that we’ve gone over the primary elements of a POS system, let’s discuss the core concepts that should drive your decision-making process. While it is tempting to make a final decision based the price on your proposal, other factors should be considered as you narrow your selection.

4.1 Return on InvestmentReturn on investment (ROI) is virtually impossible to calculate by just looking at a proposal. The hope of every business operator is that the POS solution they select saves time and money, and does it better than all the other competitors out there. But how do you know which system offers a better ROI, and how do you prove that return is actually happening? Let’s discuss a few of the largest ROI indicators.

Security – Every industry has to consider loss that occurs from shrinkage from waste, consumer theft, and employee fraud. Consider the functionality of your candidate POS solution and how it will enable you to reduce these events, and report the losses.

Automations – Repetitive POS management processes are a major expense for businesses. Usually, these must be performed by some of the best-paid staff in the company who have access to management functions; but these employees’ time could be better spent performing more valuable leadership tasks to drive business. The ability to create task automations such as advanced reports, mass pricing changes, inventory and security audits, database backups, and other key repetitive processes can save hours and wages weekly, and can add to the intangible value of keeping key leaders on task to grow the business.

Promotions and loyalty – The ability to implement robust loyalty plans with advanced rules-based redemption is a necessity in today’s market. Pinpointing the target demographics and loyal customers for special promotions allows you to generate more profits. Tracking the efficacy of each campaign allows you to realize specific ROI. The more flexible the system, the more creative you can be when trying to target key customers.

The more flexible the system, the more creative you can be when trying

to target key customers.

14


Strong Reporting – Reporting capabilities are often one of the least discussed features of a POS system during the selection process, and yet it is one of the most vital features of the system after implementation. Most systems have a selection of canned reports that work across broad industries. But when you want to take a detailed look at how your business is performing, many systems fail to provide the type of reporting necessary. They often require significant additional cost and additional third party software to extract data that is already in the system. The ability to pick specific information and directly perform calculations in the reporting tool can save thousands of dollars for merchants who want visibility into the ROI and effectiveness of business strategies.

Flexibility – Highly flexible POS systems take more time and commitment to learn. Good developers are always considering the user experience to balance flexibility and complexity. Highly utilized and flexible solutions tend to pay off in the long run by giving the business room to grow and branch out. Some systems advertise the ability to operate in multiple verticals, but take a careful look at the software – there can be major gaps in programming. This is usually because the software was initially designed around a specific vertical. Well-designed multi-vertical POS systems are created from the ground up with many verticals in mind, and are developed with features from a business process perspective instead of a vertical basis.

4.2 Payment Processing RatesPayment processing rates vary widely. Some providers focus on the lowest rates but sacrifice customer service, which can result in long and frustrating phone calls during setup, or delays when technical issues arise. Other providers charge a little more, but have a much higher level of customer service and greater diagnostic capabilities.

The money lost from a single credit card processing outage can justify paying a little more for a company that has reliable uptime and offers quality customer service. Be sure to ask fellow merchants and your POS representative who they recommend for high quality processing that fits within your budget.

4.3 PCI Compliance (PA-DSS Certified Applications)Payment Card Industry Data Security Standard (PCI-DSS) compliance has become a major part of the discussion on POS system ownership over the past few years, but very few merchants have a working knowledge of this standard and what it means to them. Be sure to speak with your merchant services provider to find out about the PCI compliance requirements that may pertain to you. These vary depending on business size, category, and other factors. The following

The money lost from a single credit card processing outage

can justify paying a little more for a company that

has reliable uptime and offers quality customer service.

15


information is intended to provide a basic overview only. The PCI-DSS is a joint venture by all the major card brands in the industry (Visa®, MasterCard®, American Express®, and Discover®) to establish a basic standard of card data security for merchants processing credit cards. Together, they have formed the PCI Security Council® (https://www.pcisecuritystandards.org/), which is the organization that drives this effort. The areas of requirements that must be addressed include (not limited to):

• Yourpoliciesandproceduresfortakingcreditcards • Networksecurity • Operatingsystemsecurity(Watchoutforoutdated operating systems like Windows XP which are no longer supported) • PaymentApplicationCertification(PA-DSS)in-scopeand out-of-scope • ApprovedPINdebitdevices • Physicalaccesssecurity

Many merchants ask if the POS software is PCI compliant. The question instead is whether the payment application is PA-DSS certified. The other aspects of PCI compliance must be addressed with the aid of your merchant services provider.

There are currently no federal or state mandates that fully adopt these standards. However, when you sign any agreement to process credit cards, the fine print states that you agree to submit to these standards and penalties, which could be incurred if credit card data is compromised from your POS system.

In the event that your POS system is breached, you would be required to pay a forensics investigation fee, which could be a minimum of ten thousand dollars. If you are found to be non-compliant with the standard, you could be assessed fees ranging from tens to hundreds of thousands of dollars.

4.4 Total Cost of OwnershipThe total cost of owning a POS system requires critical analysis. Here is a list of items to consider in the total cost of ownership:

• POSterminalsandperipheralscost • Warrantycontractcost • Supportcontractcost • POSimplementationservicesfees • Networkingequipmentcost(LocalAreaNetworkandWide Area Network considerations) • Networkingimplementationcost

In the event that

your POS system is breached, you would be required to pay a forensics investigation

fee, which could be a minimum of

$10,000.

16


• Leasingfees • PCIsecurityprotectionandremediation • Internetservicefees(dial-upor3G/4Gfailoverbackups) • POSfixturescost • Creditcardprocessingratesandfees

5 Questions to Ask Your Solution ProviderThere are many industry specific questions that you may have when discussing POS solutions with a representative. The list below includes vital questions that are often missed when evaluating solutions. Also, be sure to get a demonstration of the solution in person or via a live webinar.

5.1 When should I place my order?This answer varies widely from one provider to the next. Each provider has its own way of implementing a POS system. Give yourself enough time for the system to be ordered, shipped and installed, as well as to get the settings right, and receive proper training for you and your staff. Make sure the timeline works for you.

5.2 Can you explain the implementation process?As mentioned above, each provider has a slightly different approach to implementation. The sales representative should be able to give you a basic understanding of what is required. You need to know how long shipping might take from a distributor to the reseller. Find out if you need to do your own product or menu programming or if it is included in the service. Find out how long it will take to install the solution at your location, and if you will have to do it yourself or if the provider will do it for you. Ask about the training offered – is it a self-guided process, conducted virtually or onsite with a trainer? Will your staff be allowed to receive training?

5.3 What do I need to do to prepare my site for the POS installation?Because some implementations are turnkey and others are a la carte, make sure you understand what your provider is responsible for and what you are responsible for. Remember, these may be slightly different for each provider. At the very least, make sure that you have power and network cabling at each station’s position.

5.4 How long will it take to learn the software?Simple software solutions with limited functionality may be fully learned in as little as a week. More complex solutions may require a few months of part-time effort to become fully proficient.

Because some implementations

are turnkey and others are

a la carte, make sure you understand

what your provider is responsible for and what you are responsible for.

17


5.5 How will this system save me time and money now, and in the long term?If the representative cannot offer a compelling and concise answer to this question, it may stem from a deeper problem within the organization. If the representative does not understand the necessity of his or her own solution, he or she cannot train you to take full advantage of the system. You should find a provider that has a good answer to this question.

5.6 Will it grow with my business?All operators hope that their business grows. Ask the agent to explain what is involved in adding stations. Ask if the solution is capable of managing multiple sites, and get details about what functions are available for multi-site management.

5.7 What happens if my server fails?While technology can be extremely helpful to grow your business, it can be frustrating when something goes wrong. The majority of business operators don’t have a plan in place for system failure, and are caught off guard when it happens. Make sure your representative explains the technical support, warranty repair, logistical challenges that must be addressed, the impact of failure on your daily operations, and the time that would be necessary to recover from catastrophic failure. The answers will vary widely from one provider to the next in cost and time to recover. Use that information to develop your own stopgap plan. Don’t rely on anyone outside your business to make sure you can make it through a failure.

5.8 What happens if a peripheral fails?It’s good to clarify the recovery process for failed POS hardware. Since POS equipment is specialty equipment, you cannot usually purchase it locally in your city, and must purchase it via special order. Understanding the answer to this question can save much frustration if a failure occurs.

5.9 Is anything missing on the proposal that is recommended?If the answer to this question is “yes,” ask the representative to pitch the value proposition of additional line items that they consider worthy of your investment. Representatives may be afraid to pitch the ideal solution because they are conscious of budget shoppers. A candid discussion on this topic will help clear the air and invite representatives to give you helpful information that you might not otherwise get.

If the representative

does not understand the necessity of his or her own solution, he or she cannot

train you to take full advantage of the system.

18


5.10 How many stations do I need?1) Consider peak business volume - Plan the number of stations based on peak business, so your staff can sufficiently handle the influx of customers during these periods.

2) Number of staff who are placing orders - In a hospitality environment, we suggest one station for every five wait staff. High volume areas such as bars and cashier stations may require a dedicated station. When switching from a cash register to a POS System, remember that the POS system will not only be used for cashing people out, but will also be used for order entry.

3) Entrances, exits, floor space, and sales workflow - If you have a bar, you can bet the bartender will need his or her own terminal. In retail environments, stations should be placed in obvious and unobstructed positions. Use mobile tablets for “line-busting.” Other stations should be located where waiters or cashiers can easily access them.

4) Your plan for accepting payments - If you plan to have customers pay at the front of your business, you should have one or two dedicated cashier stations to allow speedy transactions. If the servers are going to carry their own banks, we suggest fewer servers per station.

Note: Always have a backup plan - power backups especially on the server, internet fail-overs, and offline modes for POS stations.

5.11 What are the advantages of integrated payments?Using your POS system to process credit card transactions allows you to keep records of every transaction you process in one convenient location. With the advance of high speed internet transactions, processing time can be reduced from over 30 seconds to about five seconds per transaction, which adds up in high volume instances. If high-speed internet is not available, we suggest using a standalone terminal for processing.

Thank you for reading this guide. We hope it was helpful and we wish your

business continued success.

19


About Mercury Payment SystemsMercury works with thousands of resellers and developers to offer small and medium size businesses a comprehensive portfolio of integrated payment products and services that help control costs and increase revenue.

Founded in 2001, Mercury’s mission is to provide tech-enabled services that help small-to-medium-sized merchants compete and thrive. We are dedicated to providing our merchant and partners with the best customer service and technical expertise in the industry, 24/7.

ContactMercury - Durango, CO150 Mercury Village DriveDurango, CO 81301

800.846.4472 [email protected]@mercurypay.com

Mercury - Denver, CO4610 South Ulster St.Suite #600Denver, CO 80237

20


buyer’s guide to point of sale...

Documents