Simply put, a terminal is the machine that reads payment information and helps to transfer funds from your customer’s account into yours. Although the process is highly secure and speedy, there is a great deal that goes on behind the scenes. As a business owner, it behooves you to learn why it is to your advantage to invest in a payments system that integrates with your other business tools.
Integrated payment systems explained
Traditionally, credit card terminals were stand-alone devices. When the time came to take a payment, you needed to manually enter the details. Any reports that you could create were limited to customers, transaction dates, and totals.
Semi-integrated terminals
In the middle of the spectrum is what is known as a semi-integrated terminal. In this configuration, the point of sale system and the payment terminal are two separate systems. Although they communicate with each other to initiate and complete transactions, the customer’s sensitive card details never pass through the POS. Because of the devices’ distinct status, security compliance is less onerous, and the likelihood of a data breach is markedly reduced.
Fully integrated terminals
The final option is a fully integrated system. In terms of integrated vs. semi-integrated solutions, this choice connects payment processing with other business elements. These may include your POS system, inventory management tools, and customer relationships software. There is essentially no distinction or separation between these components, enabling the fully integrated solution to furnish a number of benefits.
Benefits of an integrated payment system
1. Boosted accuracy and efficiency
As soon as a sale is made, its data is automatically recorded on your POS while the transaction is being processed on your terminal. This real-time connection means a reduction in the need to make manual entries, which are prone to error.
Additionally, accounting and reconciliation are streamlined across all systems from the start, eliminating the need to make manual data comparisons. Finally, you can make better business decisions resulting from the real-time insights across all facets of your company that your integrated equipment provides.
2. Enhanced customer experience
When customers patronize a business using an integrated payment system, they will find that their purchasing journey is fast and seamless, bolstered behind the scenes with robust security precautions.
Moreover, consumers appreciate the diversity of payment options that you can make available with a more complex solution. All the while, you can customize your payment interface to match your brand’s ethos, providing you with that extra special touch of professionalism and credibility.
3. Better security
Data breaches often occur when data is transferred between one or more systems that are not integrated. By contrast, all-in-one solutions hold sensitive customer payment data in one safe place that is usually off-site. Additionally, data is typically protected with tokenization and encryption protocols that mask it from would-be thieves.
Remaining in compliance with industry standards like those required by the Payment Card Industry (PCI DSS) can be a challenge. However, most integrated systems are designed to meet these requirements. Advanced fraud prevention algorithms within the integrated system can identify red flags and patterns that signal potential fraud. This enables sellers to proactively combat cybercrime and reduce the risk of costly chargebacks.
4. Improved scalability
Over time, your business might grow to meet increased demand. On the other hand, it could decrease in size for any number of reasons. With an integrated payment system, you can easily accommodate more or fewer locations, products, or services without the need to tear down your system and totally rebuild it.
If enlarging your footprint is what you want, an integrated payment system can be a wellspring of valuable data. This is because payment details are automatically tied to customer information, giving you the ability to gain vital insights into peak sales times, customer buying behaviors, and trending products.
Integrated payment systems are rapidly becoming essential tools for modern retailers. They enhance accuracy, efficiency, and the customer experience, all while maintaining a strong focus on security. With one of these all-in-one solutions built into your operations, you can nimbly modify your goals to reflect the evolving customer and security landscape.
North is a leading financial technology company that builds innovative, frictionless end-to-end payment solutions designed to simplify and grow businesses of all sizes. From the front door, to the back office, the developer world, and partnerships that expand the payments landscape, North offers proactive, comprehensive merchant services, in-house processing, and more.
