The Business Buzz

Nobody likes to be called a POS. Thankfully, we’re not talking about insults here; we’re talking about the point of sale. A POS terminal is hardware that allows brick-and-mortar merchants to collect debit and credit card payments. Everyone who has ever gone shopping is familiar with the little black box with a pin pad that sits on the counter, but how exactly does it work? And does it need internet connection?

We’ll look at how POS terminals and entire POS Systems fit into the big picture of card networks like Visa, Mastercard, Discover, and American Express. We’ll compare payment types like magnetic stripes to EMV chips to contactless payments. Did you know that contactless and mobile payments use technology similar to the radio, and that contactless cards actually have small antennas buried inside the plastic of the card?

Speaking of contactless cards, we’ll also explore the final frontiers of in-person payment hardware. Amazon has recently engineered stores that allow shoppers to simply walk out of the store with their desired purchases, no checkout needed. How does that work?

Mastercard and Visa have pioneered facial payment programs that allow consumers to pay without a card at all.  And experimental European companies have invented microchips and wearables (rings, bracelets) that allow customers to make payments with a hand wave.

As payment technology changes, so will the hardware. You don’t want to be left behind with outdated POS terminals that only take magnetic strip cards…especially since magnetic strips will be disappearing by 2030. Keep abreast of exciting hardware developments with our articles about POS systems.