Advantages of POS terminal | disadvantages of POS terminal
This page covers advantages and disadvantages of POS terminal. It mentions POS terminal advantages or benefits and POS terminal disadvantages or drawbacks. POS terminal is the short form of point of sale terminal.
What is POS terminal?
• It is one of the many methods used for electronic payments in todays digital world.
• POS terminal is an electronic device which can be used to pay using credit or debit card at retail outlets.
• When shop owner or retail worker inserts the card in the POS terminal, it reads the card information and checks the funds in customer's bank account.
• If the funds are sufficient, it processes the payment.
• Print of the payment made can be taken just after the transaction is successful.
The figure-1 depicts person using the POS terminal for payment using card.
Benefits or advantages of POS terminal
Following are the benefits or advantages of POS terminal:
➨It is secured method of payment compare to swipe and contactless method. It requires owner of the card to enter PIN during transaction with the bank.
➨Chip based POS terminal is less likely to be damaged compare to magnetic swipe.
➨Due to quick payment, it saves time spent on POS (Point of Sale) locations compare to previous traditional methods.
➨It eliminates user errors found in traditional payment methods.
➨It has become very convenient to pay using digital mode of payment with the availability of POS terminals at retail shops, petrol bunks, shopping malls etc. It does not require person to carry the cash while going for purchase.
Drawbacks or disadvantages of POS terminal
Following are the drawbacks or disadvantages of POS terminal:
➨It is advisable to enter PIN with proper care as it could be read by someone watching or by other methods.
➨Fraudulent machines can be used to copy the card details.
➨POS terminal or system are costlier compare to old cash registers or manual methods.
➨Reliable internet connectivity is essential for POS terminal operation.
➨It can be infected with malware.