Point of Sale Systems
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Point of Sale Systems
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The True Cost of a POS Outage: 4 Simple Ways to Avoid Lost Revenue

Emergency supplies with a lantern and flashlights used to keep business running during a power outage, emphasizing the importance of preventing a POS outage.

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:

  1. 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.

  1. 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.

  1. 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.

  1. 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.

 

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