If you run a business, you are likely already familiar with the importance of a stable POS system. All of your sales, customer and inventory transactions, and records will be reliant on this system.
So, when it comes to daily management, it’s a good idea to know the different types of POS transactions you’ll come across.
Online POS transactions occur when a customer makes a payment through an online store. When they input their payment details in the cart, the POS system records them.
It basically initiates when a customer uses their credit card or another type of payment method to complete a purchase on an online platform, and the amount is successfully transferred.
An offline transaction occurs when the merchant manually processes payment by swiping or scanning the customer’s credit card and manually entering their details. The merchant can then proceed to manually key in their details, and then the amount is successfully transferred.
It also occurs when a buyer pays directly to the seller using cash. After the transaction is complete, the POS system generates a transaction approval, which allows the seller to generate a turning draft to fund the amount for the sale.
A receipt is a form of POS transaction which is created automatically when the sale is made, and it is given to the customer as a record of their payments.
It includes the price, the name of the vendor, a running total, and the method of payment. The cash register generates a unique transaction number which is used for tracking and auditing purposes.
These types of transactions are usually initiated by the customer. It is done either to return an item or when the buyer mistakenly sends too much money.
Once a refund is initiated, it can be done by cash, check, or using the same credit card used for the original transaction.
There are some businesses that can credit the refund to the original credit card, but this all depends on your POS vendor. Certain transactions can have an auto-credit system in place for refund.
A purchase transaction, on the other hand, is when buyers are buying something. It’s basically when a customer pays for merchandise at a store or an online store.
A purchase can also be made if the buyer opts to use pay on delivery option.
Sales are one of the most important types of transactions. This happens when an item is sold, and the payment is directly received by the seller. The POS system generates a record of the amount of payment received, the date of transaction, the employee handling the transaction, and the number of products sold.
If you are serious about running your business, you will need a stable POS system in place.
Having such a system protects your business from losses and helps you run it more efficiently. When you are able to manage your finances and inventory smoothly, your daily operations will be much more manageable.