Choosing a POS system to grow with your small business

In today's business environment, customers expect to pay how they'd like—whether that's in store, on a mobile app or on your website. That means the right point-of-sale, or POS, payment processing system is no longer just a way to swipe credit cards at the register.

A modern-day payment POS system search involves finding a payment solution that's flexible enough to meet customer preferences and sophisticated enough to scale with the growth of your business. But as POS systems become more powerful, they also get more complex and expensive. Understanding how the current payment and processing systems work, their costs and enhanced features can help you make a more impactful choice for your business.

Why switching payment processing providers has become more complex

In the past, switching POS systems was as easy as plugging in a new terminal. That's no longer the case. Today's payment systems have become more integrated with accounting platforms and customer engagement tools that often require dedicated hardware. That can raise the stakes for your business if you're considering a change—especially if you've already invested time and money into existing setup and training.

"It used to be you could reprogram a terminal in minutes," explains Martin Currin, Director of Merchant Sales at First Citizens. "Now, many small businesses would need to purchase entirely new hardware or risk breaking important connections to back-office systems."

That's why finding the right fit and planning for future growth is more critical than ever when selecting or upgrading your POS system or merchant services provider.

Types of small business POS payment systems available today

Whether you're just starting out or upgrading a legacy setup, there's a growing menu of POS payment systems available for your businesses:

• Traditional POS processing systems still anchor many brick-and-mortar stores with robust in-store capabilities.
• Mobile and tablet-based systems provide portability and simplicity for service-based and mobile businesses.
• Cloud-based platforms offer real-time data access, remote reporting and easier system updates.
• Self-service kiosks reduce wait times and are becoming popular in quick-service and hospitality environments.
• Omnichannel systems combine online and offline sales into a single dashboard, helping businesses with payment processing, inventory management and communications that offer customers unified shopping experiences regardless of sales channel.

Of course, choosing among these options depends on your business model, but increasingly, it's about selecting a platform that won't hold you back as your business grows.

How modern POS systems drive small business growth

An effective POS system doesn't just accept payments—it can help streamline your business's operations. Today's systems can:

• Increase your efficiency through automation, integrated inventory tracking and faster checkouts.
• Improve your customer experience by supporting a range of payment methods and loyalty tools.
• Provide insights into sales trends, customer behavior and inventory turns.
• Support expansion into new channels, locations and markets with scalable tools.

"Many clients start out accepting payments on mobile devices, then grow into ecommerce and storefronts," Currin says. "It's critical to have a payment system with the capabilities to service your needs as the business becomes increasingly more complex."

Red flags when selecting payment processing providers

When evaluating payment processing providers, watch out for too-good-to-be-true pricing and complicated contracts.

"Beware of low rates that come with lengthy contract terms," Kathryn Chappelle, Vice President of Business Service Sales Enablement at First Citizens cautions. "If the rates come with 4- or 5-year contracts or high termination fees, that's a red flag."

Other potential pitfalls include limited technical support, lack of transparency in statements and inflexible technology. If a provider can't clearly explain their pricing model or isn't offering tools that seamlessly support multiple sales channels, it may be worth looking elsewhere.

Other POS system issues to avoid

Many small business owners find themselves overwhelmed by the amount of service provider options and fine print. Common obstacles include:

• Unclear or confusing pricing structures.
• Limited technical support when something goes wrong.
• Difficulties integrating POS systems with existing accounting and inventory software.
• Security concerns regarding fraud and chargebacks.

When working with clients, First Citizens merchant service specialists emphasize the importance of proactive education. "We spend time with each client, helping them understand their merchant statements, how fees are structured and the little things they can do to reduce costs," Currin shares.

"We're not just setting you up with a payment terminal and walking away," Chappelle explains. "We're discussing how you plan to evolve your business and making sure we're ready to grow with you."

Finding a merchant services provider to support your evolving needs

As you search for a provider, consider services that go beyond simple payment processing, like:

• Access to a dedicated banker who can act as your point of contact.
• Access to loans, treasury services and other business banking tools.
• Scalable solutions that can service each stage of growth.

The bottom line

Today's POS processing systems are more powerful and versatile than ever. They're not just tools for taking payments—they're engines for growth, insights and personalized customer experiences. For small businesses, choosing the right solution means understanding your current requirements, anticipating future needs and finding a provider who can guide you through both.

Key takeaways

• As payment systems grow more complex, changing POS merchant services providers has become more involved.
• The good news is that modern payment systems can help your business grow by offering improved automation, business insights and multichannel integration.
• When investigating new merchant service providers, try to avoid low rates that are packaged with lengthy contract terms.
• Address common issues such as complex pricing structures, technical support, security and integration to your existing systems when evaluating new service provider capabilities.