by Mike Peterson | Oct 1, 2024 | POS Systems
We understand that your point-of-sale (POS) system is the anchor of your entire operation. It is essential for you to run your daily tasks effectively and efficiently. If you experience a POS outage due to a storm or internet problem, it could halt your business and cause a significant financial loss.
Even large corporations with dependable structures can suffer from such incidents as well. Take Starbucks, for example: Due to issues with their point-of-sale systems following Hurricane Helene, three locations were closed down for 2-3 days. For a business of Starbucks’ size, this downtime leads to tens of thousands in lost income. We will examine how businesses like yours can protect themselves from this kind of loss.
How Much Revenue is Lost During a POS Outage?
Every minute that a POS system is offline causes a direct loss of revenue. Consider the Starbucks story linked to Hurricane Helene. The average Starbucks location typically earns around $4,500 each day. So, if three locations were down for three days, that would result in a total loss of approximately $40,500:
Lost Revenue = 3 locations × 3 days × $4,500 = $40,500
For a small business, even a fraction of this loss can be devastating. Although you may not be running a mega-corporation like Starbucks, a couple days of lost revenue can pose serious risks, especially if your margins are thin.
The financial damage doesn’t stop at lost sales. Delayed customer service when systems recover can lead to irate customers who choose alternative businesses. A POS outage may lead to costs much higher than just the numbers stated in accounting.
Common Causes of a POS Outage
There are a variety of reasons your POS system could go offline, many of which are beyond your control:
Power Outages
Storms or regional power interruptions can lead to system shutdowns that leave your POS systems powerless.
ISP (Internet Service Provider) Outages
From technical issues to damaged infrastructure, internet outages are a POS system’s worst enemy.
Hardware Failures
As POS hardware ages, it may fail or become defective leading to unexpected malfunctions or shutdowns.
Software Glitches
On rare occasions the software can present problems instead of the hardware or internet. A problem within your POS software can lead to operations being completely unavailable.
How to Avoid a Costly POS Outage
Fortunately, there are solutions to reduce downtime risks to keep your business running, even if unexpected events occur. To reduce costly outages, apply these practical steps:
-
Battery Backups (Uninterruptible Power Supplies)
Power outages are a leading cause of POS system downtime. However, installing a UPS or battery backup allows you to maintain uninterrupted operations. A UPS may maintain power for your POS system for a set duration allowing you to deal with transactions and shut down properly if the power continues to be out.
For enterprises located in storm-prone zones or unstable electricity regions, these systems are indispensable. Should a storm take down power in your neighborhood for a few hours, a UPS could allow you to maintain some sales.
-
Internet Failover Solutions
If your internet connection goes down unexpectedly, your cloud-based POS will become entirely unavailable. A network failover solution can seamlessly transfer your connection to a secondary network in the event of a primary network outage. In the event that your primary internet source has problems, you’ll be able to carry on selling.
Cost-effective solutions for failover increase efficiency in how you operate your business by automatically engaging and mitigating disruptions.
-
Regular System Maintenance and Updates
With recurring system updates and regular maintenance of your equipment, you can usually prevent issues. Updating your POS software eliminates any existing problems and timely hardware evaluations lead to identifying failures before they occur.
Scheduling maintenance appointments with your POS provider can improve the durability of your system while decreasing the frequency of catastrophic shutdowns.
-
Cloud-Based Hybrid POS Systems
While cloud-based POS systems enable versatility, they can be vulnerable due to their complete reliance on internet connectivity. To enhance dependability, opt for a hybrid POS system that enables your POS to operate offline. These systems can retain transaction records on-site and transfer their data back to the cloud when the network is accessible again.
This type of setup allows you to avoid missing out on sales from an internet outage because your POS operates on its own until the connection is back up.
Don’t Let a POS Outage Derail Your Business
Although certain types of POS outages cannot be prevented entirely, preventative actions could greatly minimize their impact on your business. You can rely on multiple strategies for your POS system’s stability; these include internet failovers backed by battery systems and regular maintenance from cloud-based hybrid solutions.
At Card Systems, we specialize in providing dependable, secure POS systems that defend your business against disruptions and loss of income. Our industry-leading technology paired with our top-notch support will help keep your system running, especially when it matters most. Reach out to Card Systems now to find out how we can support your business during any disruptions, and better yet, prevent them from happening in the first place.
References:
by Chandra Spary-Kontinos | Mar 7, 2023 | POS Systems, Uncategorized
A Good Point of Sale with Digital Receipts, Save Business Owners and their Customers Time and Money
The most obvious advantage of digital receipts is that they are much more environmentally friendly than paper receipts. You can reduce your carbon footprint and help the environment by eliminating the need for paper, ink, and printing. Additionally, going paperless requires less physical storage space and is simpler to manage.
Improved Customer Experience
Digital receipts offer a better overall experience for customers, and they don’t have to worry about keeping track of a paper receipt. Instead, they can quickly access their receipts whenever they need to on their phone or computer.
Cost Savings
Digital receipts also save your business a lot of money. You can cut costs and boost your bottom line without needing paper, ink, and printing supplies. Additionally, digital receipts are simpler to store and easier to retrieve should a dispute or chargeback arise, making it easier to manage and lower administrative costs.
Marketing Opportunities
By collecting valuable data, at your Point of Sale, your business can stay in touch with customers after the sale. You can encourage customers to interact with you and possibly make additional purchases by including links to social media pages or offering promotions in the digital receipts. Offering digital receipts is wise for any company looking to streamline operations and give customers a better experience.
There are numerous benefits to switching to a POS System that gives your company the ability to “go digital.” Most importantly, an enhanced customer experience, cost savings, and marketing opportunities. Your business can quickly integrate digital receipt technology into its operations and enjoy today’s benefits by partnering with a reputable Point of Sale and payment processing company like Card Systems.
by Chandra Spary-Kontinos | Apr 1, 2022 | Featured, POS Systems, Restaurant Industry News, Services, Uncategorized
What are the differences and the best choice for your business?
Are you considering Surcharging or Cash Discounting? Accepting credit cards is a necessity in today’s world. However, credit card processing fees are taking a larger chuck out of your profit margin these days, especially with the ever-increasing popularity of rewards cards. Moreover, many of the merchant fees associated with rewards cards tend to increase year after year, due to the escalation of the “Cash Back” incentives the Card Issuers give their cardholders.
Who pays for the majority of these incentives? You the merchant. More and more merchants are now electing to add a surcharge or implement a cash discount program to combat these rising costs. This may be a great option for your company if done correctly. So, what is the difference between surcharging and cash discounting?
Surcharging
- Surcharge: Adding a small percentage to a credit card transaction to offset the merchant fees for processing the credit card payment. This surcharge is added to offset the processing fees associated with accepting credit cards. This fee only applies to credit cards and does not apply to other forms of payment such as debit cards, cash, or checks. Surcharging must also be done in a compliant manner and by a processor that follows the rules and ensures their merchants are compliant.
Cash Discounting
- Cash Discount: A reduction in price for customers who pay with cash or check instead of credit or debit cards. The discount is deducted from the advertised price at the time of sale. Another method of Cash Discounting is adding a small percentage to increase the price of the sale, known as a Non-Cash Adjustment.
Making this Win-Win Solution
Ask yourself, is this a good move for your business? Will there be pushback from the customers? The solution is simple. Giving your customers an option to pay with a lower-cost alternative is a win-win! They continue to receive great pricing if they pay with cash or check, and you are able to offset your processing fees. It is good for both parties when these programs are rolled out correctly with proper signage, employee training, and a good Point of Sale System, which calculates and ensures compliance.
Card Systems understands that every business is unique, which is why we take a consultative approach to find the right solution for your business and card processing needs. Whether you’re just getting started or have been in business for decades, Card Systems can offer endless benefits to help you run your business more efficiently and more profitably.
by Chandra Spary-Kontinos | Feb 18, 2022 | Digital Menus, Marketing, News, News Alerts, Online Order, POS Systems
Join us for Great Food, Vendors, and Fun.
The weather is perfect, and with so much to do in Southwest Florida, now is the time to get out and enjoy the fun events around town. The ArtFest, Bike Night, Taste of the Cape, and Food Truck Wars started the season with breaking record crowds and revenues. This weekend, the Edison Festival of Lights and the much-anticipated return of our Greek Festival will be the focus of fun and good food.
Is your Business Pivoting with Technology and Online Ordering?
Most businesses have pivoted to curbside or pickup services for their restaurants or retail establishments. If not, they are less likely to be found, limiting their exposure and significantly reducing sales. Consider beefing up your site, adding online ordering, or implementing a third-party app to facilitate delivery. Remember to make in-store, pickup, or delivery orders easier for your business.
When are Delivery Apps Beneficial?
Third-party apps like Uber Eats and DoorDash have their place, as they give your restaurant great exposure to first-time diners and support their delivery needs. Just ensure you control your online pickup orders, or they can take a big bite of your profits. Also, take advantage of all the social platforms to market your events and link to your online ordering page. Use two buttons, one for online pickup and the other for the delivery app.
Digital Menus for Order Ahead
Our POS Software and POS Apps can create an easy-to-read menu with links for you to post everywhere. You are less likely to be found if you are not adopting this technology. These simple tools enable your customers to review your menu prior to ordering. This saves time, turns tables faster, and reduces your precious labor costs.
by Chandra | Feb 2, 2022 | News, PCI, POS Systems
Is Your Merchant and POS Provider QIR Certified?
Visa requires all merchants including Level 4 merchants (small businesses) to have their payment processing devices and systems installed by Qualified Integrator and Reseller (QIR). That means ensuring your EMV or chip reader and/or software used in your business is installed, maintained, and serviced by Qualified PCI Certified Technicians. Small businesses tend to be more susceptible to fraud thus more at risk. ACCORDING TO VISA, since EMV adoption, credit card theft has dropped about 76%.
The Difference Between EMV and the Old Magnetic Swipe Process
Although an EMV (or chip) reader can be slightly slower than the old card swipe, it is safer for the cardholder and the merchant. This is because the magnetic strip once carried all of your account information, and it was easy to copy. The new chip technology creates a unique code from with communicates that “this amount of money from this card was used for this transaction and this one only.” Thus removing the ability to reuse the information because of the unique code generated from the chip. Make sure you are using credit card terminals and or software systems that already have this technology-enabled.
Why do you need a QIR-certified Payment Provider to Install Your POS System?
The biggest reason is, securing your data. Only qualified professionals should install or troubleshoot your Point of Sale System or credit card terminals. This we where restaurants become vulnerable and open to malware. The POS goes down and someone does a quick fix or remotes in and leaves a firewall open or with an easy-to-hack password. Also, Skimmers can be placed within a machine and sold to unsuspecting merchants resulting in stolen information and potential fines.
The Payment Card Industry Security Standards Council (PCI SSC) has a certification for eligible resellers to give the business owner peace of mind. The customer’s information is secure when making transactions. In addition, the technicians installing and servicing your terminals are trained to do so with the most up-to-date standards, no matter the size of your company.
PCI DSS recommends always checking your current or new providers to ensure they maintain the highest security standards. We make sure our team at Card Systems is PCI certified. Even though filling out the form every year and doing a security scan can be painful at times with cameras and other connections in your business, it helps protect you and your customers. It is just common sense like closing your front door, locking it, and then checking it from time to time.
Search by country, region, or state on the PCI SSC Qualified Integrator & Reseller List.
by Chandra | Aug 16, 2021 | Data Security Credit Card, POS Systems, Security
Point-of-Sale Fraud Alert
Recent incidents in the U.S. include criminals committing fraud through processing fraudulent return transactions. As part of the fraud scheme, criminals obtain Point-of-Sale (POS) devices—either from an acquirer or agent while posing as a merchant, from online resellers or auctions, or through theft—and program the POS devices with the credentials of a legitimate merchant, thus effectively cloning the unsuspecting merchant’s actual POS device. Criminals use the cloned POS devices to complete returns to gift cards, often in the range of $2,000 – $6,000 per transaction. After the returns are posted to the gift cards, the cards are cashed out at ATMs. Criminals prefer gift cards and, in some instances, debit cards. These products fund rapidly, allowing fraudsters to get their hands on cash immediately.
What can you do to protect yourself?
- Always verify anyone calling you posing as your merchant provider
- Monitor your transactions often, especially credits
- Make sure your terminal or POS doesn’t allow credits without a corresponding sale
- Educate your employees
- Never let anyone other than your merchant provider touch your terminal or Point-of-Sale System
- Change passwords often and use caution if you are working remotely
As a business owner, you can never be too cautious. These crimes happen primarily on the weekends (especially long holiday weekends). Criminals will choose to take advantage of the operating hours of the merchant and financial institutions. Protect your business this holiday and throughout the year!
Call us toll-free at 1-866-207-3298 if you think your business has been compromised or for advice on how to protect it in the future.
