Some businesses have both an online and a retail component for these businesses, the merchant can integrate a POS system, which would work for both. So generally, these are devices located at checkout areas, cash registers, or at the front counter of a business. POS, in this context, refers to “point of sale.” In the credit card processing industry, this refers to where the actual transaction or sale occurs for the customer. Payment terminals and POS (point of sale systems) are the physical hardware devices that a business will use to capture credit card data from customers through a swipe, tap, or dip. There are also virtual terminals that allow businesses to run credit card transactions via the phone, but these are software-based terminals. Payment terminals and POS systems are both credit card processing hardware types.

In this article, we’ll explain the differences between payment terminals and POS systems and help you decide which features are right for your business. Payment terminals and POS systems are two separate ways of accepting credit cards, even though, on the surface, they may look very similar. One area this is true is when it comes to the payment terminal or point of sale (POS) system you choose for your business. Not only that, but they can create efficiencies that make it easier to scale and manage your business from day one. Businesses can often use them to save a significant amount of money. There are a lot of operational and technological advantages that come with the right payment solutions. But it’s important to understand all the features available to you regarding payment processing. POS system? Which do you need?Īt first, much of this information seems overwhelming for a new business owner who wants to accept customer credit card transactions. But what’s the difference between a payment terminal vs. In that case, you’ve no doubt also looked into electronic payment solutions so that you can accept credit and debit cards. Suppose you’ve recently opened a business or are planning to.

Desktop credit card terminal stand