Brace yourselves for a lot of information! I guess I have a lot to share about this topic haha!
There are tons of POS systems that are geared toward the restaurant and retail industries. For just the restaurant industry alone I can name 5 different choices off the top of my head. POS stands for “Point of Sale” system, basically your cash register/cash handling system. There are simple systems and more complex systems, it all depends on the type of tracking, security, and features you’re looking for. I’m going to be sharing with you what we personally use at Ninong’s and why we use it.
TBH, it all depends on your preference. Every POS system has its pros and cons, and in all honesty, I don’t think there is a “perfect” system out there. Because each restaurant is so different and has specific needs it’s really hard to find something that hits every need to the T.
- Some systems have monthly maintenance or extra fees
- Some charge higher credit card fees than the average competitor
- Some systems don’t include credit card services so you need to get another merchant aside from your cash register system
- When we first opened we used to use a merchant service that the previous tenants of our location used, it was grandfathered in when we bought their business. When I started working at Ninong’s full time I was trying to make sense of the credit card transaction reports, the fees they would take out, the deposits they would put into our account, etc. and couldn’t figure it out. The merchant would deposit money into our account and then take money out so I never knew how much we actually had that was usable income. It drove me crazy! I called their customer service to ask them to explain to me the process so I can track our income and keep track with our bookkeeping. They couldn’t even explain it to me or give me a straight answer! This was a no no for me.
- I’m not gonna lie, Square’s credit card fees are steep. BUT it has a lot of pros that still made it worth the fees for us. It was extremely important to me that I knew how much we had in our bank account. I know, it seems like a really basic request right?! I didn’t want any surprise withdrawals. Square did exactly that, they would only deposit the net amount. No withdrawals.
- Over time I realized that we needed more from Square’s POS system. But lucky enough as we grew, so did Square’s POS system. It was perfect timing.
- As we grew in sales, Square would have an annual phone meeting with me and I would have an opportunity to negotiate a lower credit card fee rate with them. Don’t be afraid to ask!
- I’ve honestly looked into various different systems just to make sure Square is what is best for our business. And currently, it still is. Some other companies charge a monthly fee to use their POS system, Square doesn’t charge. So if a competitor wants to charge me a monthly fee of $30 a month with lower credit card fees but Square doesn’t charge a monthly fee and I spend $30 or less in credit card fees I’d rather go with Square.
- Some POS systems require you to use a merchant service associated with their POS system. I like that Square has a register system so that the credit card reader and the cash register are streamlined, and Square is their own merchant service. I hate having extra machines on the counter, I like a cleaner look.
- Some POS systems are confusing and tricky to use. Square system is so easy, our employees pick it up very quickly so little to no training is needed.
- Square also doesn’t have any contracts. To start using Square all you need to do is register an account, link your bank account and you’re ready to go! To stop, just stop!
- Square has the Square Capital Program. This is by far one of the most useful features that Square offers. We all know the conventional way of financing – loans, credit cards, etc. Square has changed the way small businesses can borrow and pay back loans. If you need some extra capital to invest in your business, Square can loan you the money. They will charge an interest on the amount you borrow and they will deduct a percentage from your daily sales instead of the normal monthly payments. For example, if our agreed payback amount is 10% of daily sales and I sell $100 one day, they will take $10 from my daily sales and put it toward the loan. If I sell $10,000 that day they will take $1000 of my daily sales and put it toward my loan. For us, it was the most efficient way to pay back a loan since we didn’t “feel” the blow of a large monthly payment. They would even deduct the amount before they deposit the funds into your account and give you a daily report.
For us, Square has been the way to go. For now. I’m not a die hard Square user, if someone else is out there I’m always happy to test it out but Square has been a great service for us. Like I said, every system does have its pros and its cons but I can live with Square’s faults for now. Their pros definitely outweigh their cons!
My advice to anyone that’s looking into the ideal point of sale system for their business is to do research, take note of the pros and cons of each service, and weigh out the pricing. Don’t let sales people push you over because of sales talk. Take a look at the bottom line and see what you’re willing to spend along with the services you’ll be getting. Some businesses will need something more complex, and some businesses can work off of a calculator. Neither is wrong, just do what is best for your business!