As a value-added reseller, you've probably seen plenty of changes both in payment processing and in point-of-sale (POS) solutions. From advances due to the EMV transition to the rapid adoption of tablet computing at the POS to the increased acceptance of software as a service (SaaS) and cloud computing models, your customers have many more options than ever before. And as you help business owners adapt to these industry changes, you have the opportunity for increased business and revenue.
Traditional pricing models for POS solutions often included hefty up-front costs for hardware plus software license and yearly maintenance fees to cover upgrades. But with a wider variety of options, customers have grown accustomed to lower up-front pricing coupled with ongoing monthly service fees.
As you evaluate your business model, consider new POS solutions that better fit your client's needs and offer you regular and recurring revenue streams. Here are some strategies you can use right away.
Recommend cloud-based POS solutions
Cloud-based or SaaS POS offerings mean easy access to data and reporting features, instant upgrades in order to keep your clients abreast of new technologies and security requirements, and easy integration with other systems like loyalty and rewards programs, and gift cards. And compared to a traditional system, there's little exposure to viruses and other glitches that can require extensive rebuilding.
Instead of steep upfront costs, customers pay a monthly fee that covers software, support, backups, and future upgrades. This model prevents a lot of surprise expenses and allows business owners to budget more easily. And when you connect clients with this type of system, you also gain a piece of the recurring revenue.
Bundle payment processing with POS systems
When a customer needs help setting up a POS solution, he or she is almost always looking for payment processing services too. A single-source solution can streamline setup and support for a busy merchant.
As a trusted advisor to your clients, there are several reasons to recommend a combined payments system. The first is that as you partner with a payment processing company, you'll gain an increased understanding of the current technology landscape. That knowledge benefits both you and your customers and helps you stay abreast of new developments. And while you don't need to become a payments expert—unless you want to—you and your clients will receive high-level support services.
Business owners will also appreciate the benefits of a single-source payments solution. They'll have just one point of contact when requesting support and, in most cases, will minimize up-front costs and shift to a pay-as-you-go monthly plan. And when you provide clients with a single-source payments option like this, you benefit from a percentage of the processing and transaction fees.
Changes in the way consumers make payments, along with credit card security enhancements like EMV, are causing a large-scale replacement of payment processing equipment and software. You have the opportunity to protect your customers from security lapses while also aligning new income streams from all-in-one payments and POS solutions.
What payment and POS solutions are you offering to your customers in order to help them adapt to industry changes?
ABOUT THE AUTHOR
Jeremiah Shea leads Ingram Micro’s DC/POS Payments Program and provides support for vendors like Verifone, Ingenico, Magtek, ID Tech, and Equinox. He has been part of the DC/POS division at Ingram Micro now for five years, working with all facets of the business for strategic execution. Jeremiah has also become the subject matter expert on EMV readiness and overall payments strategy. With a technical background and a sound understanding of the business, he is a great resource to tap for any and all questions relating to EMV, but more broadly anything DC/POS related as well.
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