Technology Toolkit

POS stands for “point of sale” and it is general used to describe the computer used to check out customers. It used to be that these machines were simply cash registers that rang up sales and provided a safe place to store the cash, checks or charge slips that your sales generated. These days, like most other things that are run by a computer system, they do much more than that.

Inventory Control

One of the biggest advantages provided by the modern day POS systems is the help they can offer you by tracking your inventory levels. No matter what the size of your business, keeping track of what items enter and leave you store’s inventory is an important part of running an efficient business.

Knowing exactly what items are selling and in what quantities makes reordering much easier. Instead of guessing what items you will be needing in the future, which may well lead to excess inventory and wasted profits, you can only order what you actually need. Inventory tracking can also let you know what items may be walking off your shelves without being paid for. Shoplifting costs retail businesses large amounts of money each year and knowing what items are being stolen will allow you to take steps to stop the theft.

Modern POS systems provide an easy way to keep your inventory tracking under control. By linking them to your store’s inventory system, they can provide you instant data as to what is being sold. Each item has an individual bar code. When it is scanned by the POS system, the information about that item is automatically entered into your inventory control system.

Payment Types

Another advantage to today’s POS systems is that they will allow you business to efficiently process many payment types. It used to be that smaller businesses could not easily process credit card and check payments. This meant that the business either opted not to accept those forms of payment or accepted them knowing that there was a possibility that they would never actually receive the payment as it was hard to verify the accounts.

Now the systems that process checks and credit cards are an integral part of many POS systems. When a credit card is scanned, the account information is not only taken, but it is verified. If the account had been compromised in some way, the card is declined. This saves your business and possibly the person who has had their account compromised from taking a loss.

The same thing happened when a check is run through the scanner. Although not all systems can verify that the account has enough of a balance to cover the check, they can at least verify that the account exists and that it is currently in good standing. Although this will not protect you from checks that bounce it does keep you from accepting bad checks.

Like so many other technology based items, the number and quality of the services that your POS system offers you has grown by leaps and bounds in the past few decades. If the system you are using is more than ten years old, there may be a great many advantages to your business if you update your POS system.

With so many shoppers now making use of retailers that ship their purchased items to their homes, there are now criminals looking to take advantage of people by swindling them out of their hard earned money. Scammers are very clever and are skilled at tricking the most informed person, so it is important to know how to avoid scams when shipping a package.

1. With the huge growth of the internet, retailers are making use of drop shipping services. Because the retailer does not get to see the items being shipped, a few drop shipping companies may ship poor quality items directly to the retailer’s customers. To make sure the drop shipper that you use is legitimate, you can order a few products from them to make sure they are as described and are of good quality. You will also be able to assess the shipping times. There are many quality drop shippers so the key is to find good wholesale supplier. A good drop shipping wholesale supplier should be trustworthy because they are an important part of a business.

2. Do an internet search of the shipper you are investigating to see if they are legitimate. Make sure there is a legitimate address and contact phone number. You can then contact the shipper directly. As well, there are scam busting sites where people report scammers so you can to see if there was any thing posted about the shipping company you are researching. Every legitimate company will have licenses and certifications to provide the services that they offer. You may want to call the better business bureau who can inform you of any issues they have on file for a company.

3. Do not ever give out financial or personal information. This can include your driver’s license number, social security number, credit or debit card number, or bank account number. Do not click on links to your account because it may possibly be a Phishing email that will send you to a fraudulent site. Read the purchaser’s email carefully and look for questionable words. Make a note of persistence to ship right away. Phrases and sentences should make sense. Do not open any type of attachments from unknown sources.

4. Do not ship anything until you have received the payment. If the payment is by e-check, wait until it clears before you ship the item.

5. If you are the victim of a scam, go to the shipping company that you used to send the package and tell them what happened. They may be able to intercept the package and return it before it arrives at its destination.

6. Report any scammers to the company where the transaction process took place such as eBay, PayPal, Craig’s list…etc. You should also report it to the police.

7. Be on the lookout for phony cashier checks and money orders. If a bank cashes it, you will be responsible for paying the bank when the fake is discovered.

Unfortunately there are predators out there looking to take advantage of people. Anyone can be a victim of a scam so it is important to take precautionary measures when shipping an item or paying for an item that is supposed to be shipped to you.

The expression, PCI Compliance, means the Payment Card Industry Data Security Standard. This is a global directed program designed to protect the consumer from identity and financial information theft. If businesses are not a part of the program or do not comply with this standard, they could receive considerable fines or be banned from using payment card acceptance programs.

PCI DSS originated as five different security programs that consisted of Visa Card Information Security Program, MasterCard Site Data Protection, American Express Data Security Operating Policy, Discover Information and Compliance, and the JCB Data Security Program. The purpose was to build an additional layer of security by certifying the businesses that meet minimum levels of security when they process payment cards. In December of 2004, these companies merged their policies and created the Payment Card Industry Data Security Standard (PCI DSS).

The PCI DSS rules compel businesses that process debit and credit cards to carry out application reviews and install web application firewalls for the purpose of enhancing security. Once the business installs the security programs on their system they are accountable for ensuring that all the computer systems are protected and that they remain PCI compliant. As well, businesses must institute security policies such as not sharing passwords, not writing credit card numbers on paper, and safely disposing of transaction slips. These policies must be implemented before achieving PCI compliancy. PCI is frequently upgrading its systems’ software and monitoring systems to deal with innovative hackers.

PCI compliancy impacts everyone who buys products with payment cards, or accepts payments with these cards. As of September 30, 2007, all businesses managing cardholder data have to be fully compliant with stringent security standards. PCI DSS provides two specific security rules to thwart breaches coming in from wireless networks. They monitor firewall segmentation between wireless networks and any network that may come in contact with financial information. The PCI DDS also carry out checks on the use of wireless analyzers to detect if there have been any unauthorized wireless devices used.

Completing the PCI compliance process can take one day or up to two weeks. It all depends on the threats found after a PCI scan and how long it takes to complete a self assessment questionnaire. The Self-Assessment Questionnaire (SAQ) is a document that businesses are required to complete every year and submit to their acquiring bank. It consists of a set of twelve security requirements sub-divided into 6 broader sections. Each section targets a specific area of security from the PCI Data Security Standard (PCI DSS). The questions range from having current virus protection and firewall installed to restricting access to the client information. The process of PCI compliance is not recommended to try to complete on your own. It is highly recommended that a business acquires the services of a Quality Security Assessor and/or an experienced IT person. The mandated requirements for PCI compliance varies from the size of a company, their level of technology, and the threats that develop.

Identity theft and fraud can be traumatic for victims, not only financially, but also emotionally. PCI, when implemented and enforced properly will help to reduce the risks.

The early days of using a cash register and pen and notebook for accounting and processing transactions are no longer an effective means of keeping up with today’s advancements in business technology. In order to stay competitive businesses have to adapt and change with emerging technologies. A technological advancement that businesses are now using is the point-of-sale (POS) system. They are now realizing the many benefits POS have on their businesses.

The following are the many benefits of utilizing point of sale systems:

1. POS systems provide a business with a real-time detailed report of sales. This allows businesses to assess what products are being sold and what products are lagging in sales. The business can then implement marketing strategies to boost sales of the popular products. They will also know in real-time what is not selling so they can decide whether or not to order that product. A POS system provides the latest sales reports for the day, week, month, or year.

2. POS allows for improved customer service. Transactions are processed much quicker, item that are scanned for their price are accurate which lessens sales discrepancies.

There is also a wide selection of methods to take payments such as credit cards, debit cards, gift cards…etc.

3. POS provides an efficient method of managing inventory. By being able to view in real time what is selling, they will be able to reorder products that are running low. POS software will also let you know when you need to reorder a product. Businesses can also keep track of the time of day that certain products are selling so they can arrange marketing displays around peak selling times. As well, businesses will spend less time on paperwork, accounting, inventory management, sales record keeping, as well as managing such programs as marketing, special advertising programs, loyalty programs, discount programs, and much more.

4. POS allows for the management of gift cards, coupons, and loyalty programs. This is effective way of monitoring the program and keeping track of the success of the programs.

5. POS systems and software is easy to learn. Most POS sellers will train staff and management on how to use the system. It is also easy to install and maintain. As well, POS software can be integrated into other applications so that all areas of business management can be viewed in one central place. It gives the user better control of the business. As well, technical support is only a phone call away.

6. POS retail software makes it easier to keep track of customer personal information, staff payroll, customer billing and shipping, vendor listings, and inventory management.

The many benefits of point of sale systems make it an essential business investment. The type of retail software a small business chooses depends on the type of business, size of the business, amount of sales, and the type and amount of inventory.

Point of sale systems allow for better management of a business, improve customer satisfaction, and helps increase sales. With POS, businesses are able to run a more effective and efficient operation.

For those who are not familiar with bar codes, they are a series of lines black lines and spaces or various widths that stand for numbers and /or letters, and punctuation symbols. The codes are found on most items produced today to uniquely identify items with a scanner. The scanner reflects light off the code and in turn reads the information, translates the code into numbers and letters that get processed and read by the computer.

Bar codes, or UPCs (Universal Product Codes) were first used in 1974 and the first item scanned was a package of Wrigley’s Juicy Fruit gum (10 pack), which has since been put on display at the Smithsonian. At that point in time, it was projected that there would be a savings to producers of good, of just under $1.5 billion but it turns out that the estimate was incorrect and the actual savings is an impressive $17 billion a year.

Benefits of Bar Coding

There are several reasons for using bar codes which prove there usefulness:

•Collection of data quickly- in fact a scanner can record the information and enter it up to seven times faster than a skilled typist doing the work manually. The accuracy is also much improved – up to 10, 000 times better. It is estimated that bar codes make 1 error for every 3 million scan made as opposed to manual errors averaging in at 1 in every 300

•Scanning also reduces labor costs, relieving workers from manual data entry. It helps to keep better records of inventory and sales and saves time again for the worker searching inventory physically in order to find stock.

•Access to information is increased as well as increased access to details about inventory and products. This helps with decision making when ordering and restocking items which would otherwise involve making long tedious lists. It helps by keeping a tighter hold on inventory control thus helping to eliminate duplicate orders or overstocking of items.

Ways that Bar Codes are used:

Bar codes can be used for more than just flagging prices and inventory for groceries and items purchased everyday by millions of consumers. For example:

•The most common is the point-of–sale, where the items we purchase as consumers are scanned at the cash register. This saves on labor costs.

•Bar codes can be used for manufacturing industries to track the progress of the stages of work being done on a project. It can keep detailed information on how much product is being used at each step of the manufacturing process.

•Inventory can be easily controlled by the scanning process. Tracking goods that are being shipped or received is quick work using UPCs compared to doing it manually. Data can be uploaded from a handheld scanner into a company’s main computer at regular intervals (commonly referred to as Batch). It also drastically reduces time and effort when conducting annual inventory controls and counts, keeping time consumption low and costs down.

•Coding is also now used for security practices, providing bar coded tags to grant access to employees into their designated areas of work. In addition to granting access, many of these ID Tags are also used to keep track of employee time sheets and payroll.

•In the case of packaging, bar code printers produce a sticker to help identify parts and serial number for shipping goods. This helps in shipping and enhances the ability to track shipped items.

•Offices such as medical and dental can use bar coding as a means to keep complex patient records sorted more easily. By coding the boxes on forms filled out by the patient or doctor sorting through that information or compiling similar information for reports makes this chore a simple and quicker one. The result is better and faster patient service.

The introduction of UPCs has changed how companies handle time, money, and makes them cost effective and more efficient.