Funds Distribution System Connected and Transactions

Discuss about the Funds Distribution System Connected and Transactions.

Introduction

The POS systems in businesses that are small often are only cash registers that happen to be sophisticated. In the years of 1970, registers of cash functioning via a computer started being used in many areas which then began giving aspects like the client to server technology, peer to peer communications which was done remotely and also the backups.  In the recent time, point of sale systems have become standard in the hospitality industry and a good number of retail businesses level have personalized the system of POS. The point of sale systems may be linked with business accounts which in return would make it easy and fast to accept the transactions of cards of credit by the businesses. The businesses are provided with the joy of efficiency that is increased of the employee, record keeping that is better and accurate when the point of sale system processes the transactions immediately as they are being performed. The point of sale systems can be personalized and designed specifically for the industries.

Positive and negative impacts of the POS

Efficiency is one of the main reasons as to why a good number of businesses implement the point of sale system. A point of sale system that is right makes it possible to eliminate any kind of errors resulting from the human which occurs during the process of processing transactions performed by employees. The point of sale system safeguards info in a well-organized manner and in a single place which in return reduces any errors which results to efficient and faster processing of data. (Kumar, 2014)

Another advantage associated with the use of the POS is the simplification of information recording. This is possible since the point of sale systems standardize the format of the transactions. The storing of transactions is carried out in a central computer and it is possible to immediately print any of the transactions as soon as they are requested which is efficient since it helps in minimizing any occurrences of the wastes.

The point of sale system provides a hand in the matters of decision making in a business since they are designed in a manner that it is able to record every minute detail concerning a transaction, for example, the number of sales done, who carried out the transaction of the sale, the services and the products that have been purchased in that day and finally the time of the transaction as well as the date. (Kumar, 2015)

Last but not least, the point of sale system assists in saving of money which is made possible by the well tracking of the inventory, making of informed decisions and time saving for the employees which also is good in reducing the overall cost. (Wang, K.M. and Liu, 2016)

Besides being advantageous, the point of sale systems has some issues with the security. During the transaction process, customers are likely to expose their PINs to their fellow customers. Also, the web-based POS are likely to face the issues of security which are experienced by online businesses.

Another concern regarding the POS is that it can be costly at times as it requires regular updates of the POS software. There is also the monthly subscription that requires to be attended to as well as the licensing fee required when purchasing the POS system. (Watson et al, 2017)

Competitive advantage of the Point of Sale

Among the many effects of the POS in businesses is that, it enables the businesses to compete fairly with other businesses in the market. With a POS system that is integrated, it becomes possible to track and manage inventory efficiently which otherwise would have been done manually which is not very effective as it would consume a lot of time and also some human errors that would arise. The POS is able to provide detailed reports regarding the business products and the operations and the employees which enables proper management of the business generally. This in return helps the businesses to properly price products according to the returns they are providing and also evaluate the performance of individual employees. With that, the business is able to optimize its overall productions as there are minimal errors, wastage and the results are maximum. It also becomes possible to make smart decisions on customer preferences based on the accurate and timely reports provided by the POS. The business is also able to focus and put more effort on the important areas in the business. All this enable the business to provide the best hence it becomes possible for the business to compete with others in the market. (Rongley, 2011)

The POS utilizes the centralized database as it offers a lot of benefits to the organization. One of the benefits is that, compliance maintenance becomes easy as retailers are able to easily comply with set standards that are followed globally and also the regulations such as the tax. The doubts as to which systems have complied with the set standards of security and also which systems have been updated or not are eliminated as it is possible to control that at a single point.

Centralized database also enables analysis of huge volumes of data in a quick and effective way which helps the customers to shop globally in real time. (White et al, 2015)

Centralized databases also enable businesses to realize reduced costs in terms of maintenance and management. This is because a good number of peripherals are easily and quickly connected.  The connection gets rid of the need to stick to specific contracts or brands on the off chance that new functions are needed. Using a single compatible platform with various environments of operations of systems of the servers makes it possible for the retailers to make changes in future for the accommodation of the demands of customers for several retail channels and the various types of payments. (Postrel et al, 2009)

Decision making in the Point of Sale

The point of sale system makes it possible to make the correct decisions in the operations of the business. This is made possible by the fact that, the POS is able to produce timely and accurate reports regarding the performance of each and every product transacted in the business, the services offered, the purchase behavior of the customers and the performance of the employees. Regarding the products and services, the POS provides detailed report based on the products performing the best and the ones performing poorly in terms of the returns. This report enables the business to decide on the products to increase in the business and the ones to eliminate or less concentrate on. Also, based on the purchase behavior of the customer, the business is able to decide on proper pricing of the products and also measure the effect of promotions that it might provide seasonally without affecting the profitability of the business. The POS enables easy tracking and management of the inventory. Finally, with the accurate reports provided, the business is able to manage and evaluate the performance of the employees. The business is able to decide on which employee to carry out specific functions based on their productivity. (Labrou, Y. and Agre, 2010)

For the small businesses, it is advisable that they implement the metropolitan area network for the point of sale network. this is because it covers a measurable size of the physical area and also allows for the resource sharing among several computers. Another technology advisable for the small businesses is the wireless technology as it would suit MAN. It is strong, fast as well as mobile. Additionally, technologies such as the EDGE, WCDMA and the GPRS would be recommended as they are secure, fast and able to support the POS systems. (Smith, 2009)

Risks associated with POS implementation

There are many security issues that arise with the implementation of the POS in businesses. The privacy and confidentiality of the customer details as well as the business information may be exposed to danger when attackers or hackers try to inject malware in the network of the POS system so as to steal their credentials. The malware introduced illegally on the network captures the information being communicated between the sender and the recipient, alters it and sends the wrong information in the receiving end. (Lum, 2013)

The attackers also may trick customers in exposing their login credentials through disguise and then use it to access their credit card details and use it to commit fraud. There are also skimmers in the businesses who may attach some devices on the hardware of the POS which may be used record the security credentials and use it to commit fraud in the business.

Other attackers also find their way in accessing the default passwords provided by the manufacture and they use that to illegally access the devices and accounts of the businesses and steal the information for their own selfish gain. (Nelson et al, 2009)

Good news is that, it is possible to protect the business and the customers from such insecurities by regularly updating the POS software since, the security is increased with the release of newer versions of the software. Another mechanism of improving the security is by ensuring that the default passwords are immediately changed as soon as the installation is completed. Another caution to be taken may be to ensure that the access of the employees to the business premises is limited to avoid any unforeseen insecurities. (Burke, 2010)

Conclusion

From the discussion provide above it is evident that, implementation of the POS has its advantages as well as the disadvantages. Although, the benefits overshadow the limitations, it is also good not to overlook the disadvantages. But the main point is, the POS provides so many benefits and every business should seriously consider implementing it as it would boost the business to a great level.

References

Burke, B.V., Every Penny Counts Inc, 2010. Funds distribution system connected with point of sale transactions. U.S. Patent 6,088,682.

Kumar, R., Khyber Tech Corp, 2014. Integrated portable device for point of sale transactions. U.S. Patent 5,294,782.

Kumar, Rajendra. "Integrated portable device for point of sale transactions." U.S. Patent 5,386,106, issued January 31, 2015.

Labrou, Y. and Agre, J.R., Fujitsu Ltd, 2010. Wireless computer wallet for physical point of sale (POS) transactions. U.S. Patent 7,784,684.

Lum, J., Logic Controls Inc, 2013. Point-of-sale system. U.S. Patent 6,546,441.

Nelson, E., Price, J. and McCormack, H., First Data Corp, 2009. Point of sale device. U.S. Patent Application 29/284,799.

Postrel, R.D., Haven, K.R., Empson, E.H., Fang, C.C., Nabulsi, H., Shiozaki, S.J. and O'young, J.G., SkyTeller LLC, 2009. Point of sale device. U.S. Patent 6,003,008.

Rongley, E.H., International Voice Register Inc, 2011. Method and apparatus for conducting point-of-sale transactions using voice recognition. U.S. Patent 5,758,322.

Smith, S., In2M Corp, 2009. Methods and apparatus for wireless point-of-sale transactions. U.S. Patent Application 11/440,827.

Watson, D., Kuchenski, D.W., Klein, A., Zaugg, M., Block, B., Harris, R. and Konecny, R., Diebold Nixdorf Inc, 2017. Point of Sale Transactions. U.S. Patent Application 15/406,184.

Wang, K.M. and Liu, S.C., Ennoconn Corp, 2016. Point of sale device. U.S. Patent 9,448,598.

White, S., At&T Mobility Ii Llc, 2015. Systems and methods for handling point-of-sale transactions using a mobile device. U.S. Patent 9,053,474.