Point of sale systems may seem a little complicated with the many terms that companies use to sell their machines. Here is a breakdown of vocabulary that you have to know before you start shopping for a POS system.
- Point of Sale: The point of sale (POS) in a retail store or restaurant is where the company’s products are sold. Usually, the POS takes the form of a cash register, although new cloud-based devices make it possible for a POS system to be used on a smartphone.
- Batch Processing: Batch processing is the processing of large amounts of data that has been reserved. This data doesn’t need to be analyzed or accessed on a rapid basis. Batch processing is not done in real time.
- CVV Code: The card verification value (CVV) code is a method that is used to provide extra protection against fraud for credit cards. The CVV code is often referred to as a security code, verification code, or card code number. These numbers are on the back of the card.
- EDC: Electronic draft capture (EDC) automatically balance, settle, and authorize credit card transactions. This system is included in many POS systems to save time and money.
- EDI: Electronic data interchange (EDI) is a process of electronically exchanging purchasing data between your POS system and a vendor’s system. This process allows for easy purchase order creation and other essential critical actions.
- End-to-End Encryption: This is a security feature that protects credit card information at the point of sale and processing transaction. Data is encrypted as it goes through the transaction process so it can travel safely through vulnerable networks to be processed.
- Exception Reporting: This is a type of summary report that identifies events that are outside the scope of what is considered “normal” for the retailer. Alerts can be low inventory, employee assessments, and more depending on your POS system.
- PA-DSS: Payment Application Data Security Standard (PA-DSS) is an acronym for the system set up by the Payment Card Industry Security Standards Council. This Council ensures that credit card transaction information is secure from outside parties and employees. PA-DSS is mandatory for all businesses that process credit cards.
- PCI Compliant: PCI compliance or PCI compliance is when software has been approved by the Payment Card Industry Data Security Standards or PCI-DSS.
- PLU: PLU is the product identification numbers. While this is usually the barcode that is affixed to the item, businesses can assign their own PLU codes for items.
