Point-of-sale has been a major part of the retail industry. However, the payment-making process has been simplified and convenient with digital advancements. A POS billing machine reduces the physical handling of cash and avoids events like counterfeits and pilferages. The process of payment and record-keeping is faster and easier with POS systems. 

A POS payment gateway also prints purchase receipts and maintains transaction records besides receiving payments from customers. The basic working principle of a POS system is pretty much easy. The two major components of a POS system are its hardware and software. 

A typical POS payment machine in retail stores contains several features like a screen that monitors transaction progress, a barcode reader to know the price,  a card ready for processing contactless payments, a receipt ready, and a cash drawer. However, the software component is a vital part of a POS payment machine. It stores data either on a local server or in the cloud. It helps retail store owners to choose a POS machine that works for them. 

Difference between local POS and cloud-based POS

Data storage

As explained earlier, a local POS payment machine stores data in a database system that is present in the retail store, and the data can only be accessed on the system on which the software is installed. 

A cloud-based POS system stores data in the cloud and the data can be accessed through any device that has internet connectivity. You will need to log in to your cloud account to get access. 

Data security

A desktop computer is always at the risk of being attacked by viruses, crashes, or physical damage, and when any harm to the computer means loss of data. Also, the data in a local-POS billing machine is prone to theft, whereas a cloud-based POS system does not have to worry about any attack on the computer as your data is always safe. 

System management and maintenance

When you purchase a local POS billing machine software from a mobile POS machine provider and install it on your computer, the management and maintenance of data and your system are your sole responsibility. However, If you are using a cloud-based POS, complete system management and maintenance would be provided by solution providers upon request. 

Update

Every system requires an update, and POS systems are subject to update as well. You must hire a professional to update your on-premises POS machine. The technicians working hours can collide with your business hours and potentially put operations on hold. Also, you will need to bear labor costs for running updates. 

But if your retail store has a cloud-based POS payment gateway, the software updates take place automatically on an interval-basis. The updates can be scheduled to run during the off-peak time to avoid interruption to business activities. The best part is that it does not also cost money. You may have to watch and decide when to update the POS system. 

Software Installation

For any software to work on computers, it has to be installed manually on the computer system. A license fee is also levied on each system the software is installed. Hence, the cost of installation can put a financial burden on the retail business, and you will have to work with limited hardware. 

For any POS software to work, it must be installed on the computer system. Every time you install the software on a system, you will have to incur a license fee. Therefore, you may have to work with limited hardware. 

A cloud-based POS payment gateway system can work on any device without the need for an installment license. All you need is the internet connectivity on the system. The benefit of using a cloud-based POS system is that it does not require specific hardware. Any device connected to the internet will suffice, which includes mobile phones, tablets, and iPads. Check here also F95zone.

Cost involved

Cost is the most crucial factor before taking any decision in the business. There are two categories of the cost involved in a local POS system, the cost of installation and the license cost. The cost of maintenance is incurred during updates and reinstallation of the software. A cloud-based POS system does not require both maintenance and license costs. The set-up cost is low compared with the local-based POS. 

To conclude

POS billing machines work a similar way, except for the storage of data. An on-premise POS system stores data in a computer located inside the retail store, whereas the data on a cloud-based online POS terminal can be accessed through any electronic device with internet connectivity.