EPOS system: What it is and how it works

If you run a retail business, you’re going to need to know about EPOS systems - or Electronic Point of Sale to give it its full name. In an increasingly digital and cashless world, technology like EPOS can help retailers meet the expectations of the modern consumer and offer a smooth, seamless checkout process.

In this guide, we’ll shine a spotlight on EPOS - to help you understand what it is and how it works. We’ll also outline how a Wise Business account could potentially help you make fast and cheap international payments. So, let’s get started.

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Table of contents
EPOS systems defined How does EPOS work? EPOS hardware EPOS software What are EPOS tills? EPOS systems and international payments International payments made simple with Wise Business

EPOS systems defined

An EPOS system - Electronic Point of Sale is a digital checkout and till system¹. It uses a combination of hardware and software to offer a wide range of different functions to retail businesses. Depending on the system, this could include the following:

• Taking payments - including cash, credit/debit card, electronic and contactless payments

• Creating receipts - including issuing email and text receipts

• Recording sales

• Accepting returns

• Storing and processing information

• Generating insightful, customised reports and insights

• Inventory management tools - which can update your inventory in real-time.

An EPOS till system can offer lots of benefits² to small business owners, and their customers alike. These include:

• Increased efficiency and accuracy with reduced errors
• Streamline communication, particularly with restaurant EPOS systems
• Real-time reporting on sales, stock, profits and more

You can also link your EPOS system to other devices, depending on how you run your business. For example, a tablet, barcode scanner or receipt printer. This can be particularly useful if your business is within the hospitality industry. EPOS systems for restaurants and takeaways are very popular as they provide a fast and efficient way to take and fulfil orders and take payments.

Best of all, EPOS systems keep your payments organised. Everything is stored automatically and electronically, and you can generate custom reports to analyse how your sales are going.

How does EPOS work?

A typical EPOS system for retail is made up of hardware and software³. It links your till and card payment devices to a computer in order to create an integrated payment system.

There are lots of types of EPOS systems available. But in most cases, you’ll sign up for a package with an EPOS provider like Square, Zettle, Stripe, Lightspeed, EposNow or Shopify POS. There’s usually a monthly fee to pay for the software, along with transaction fees.

Some packages come with EPOS hardware included, while other providers offer equipment such as compatible card readers and tablets as extras available to purchase.

The most popular EPOS software is usually cloud-based, but you can also opt for a system where your data is held on servers on your premises. However, this option often requires much more in the way of setup, and can be more expensive, difficult to update and less flexible than using a cloud-based service - where you can simply switch to a different provider (provided you don’t have a fixed-term contract).

EPOS hardware

EPOS hardware consists of things like touch screen monitors, tablets, card payment terminals, cash drawers, barcode and QR code scanners. These are the things your customers and staff will use to interact with the EPOS system. You can usually add on extra equipment provided it’s compatible for connection with the system.

EPOS software

The software is what puts EPOS several steps ahead of the traditional till. The software package runs on the hardware and is what stores, processes and organises all of your payment data, along with offering other functions for retailers such as reporting.

You can do all sorts of things with EPOS software, including linking together multiple tills and terminals, connecting your website’s e-commerce store and integrating a wide range of third party applications (for example, your accounting software).

What are EPOS tills?

Modern EPOS systems are so much more than cash tills⁴. They are a more technologically advanced way for retailers to sell products and take payments, but they still come with something you’d recognise as a till or cash register.

A touchscreen monitor, terminal or tablet is essential to help your staff process purchases and payments. It’s where all the critical checkout functions happen, from creating receipts to accepting returns.

The key difference though is that unlike a traditional till, your EPOS terminal will be linked to powerful software.

EPOS systems and international payments

To start accepting payments in person or online, you’ll need a payment processing provider if it's not included in the EPOS package that you have. Finding the right payment solution can be quite tricky, especially if you make and receive international payments.

Most payment processors like PayPal and Stripe support global payments but make sure to pay attention to the fees and exchange rates as International transactions are often more expensive.

International payments made simple with Wise Business

Opening a Wise Business multi-currency account could help save you money when receiving international payments in over 40 currencies. By withdrawing your sales proceeds to your Wise multi-currency account in the currency that you receive, you can take advantage of currency conversions at the mid-market exchange rate and low fees.

You can also use Wise to make international payments to suppliers.

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And that’s EPOS systems in a nutshell. We’ve covered how EPOS works, the ins and outs of hardware and software and a few of the benefits of EPOS for retailers.

You should be all set to start comparing providers and shopping for hardware, in the next exciting step for your business.

Sources used for this article:

1. Shopify EPOS system definition
2. Advantages of an EPOS system
3. How EPOS systems work
4. EPOS tills

Sources checked on Apr 16, 2024