Point Of Sale (POS) payments are no longer just over the shop counter, they also includes payments from sales on the Internet, on mobile phones and on many other devices. But whatever the POS, retailers have to accept the payment systems that most of their customers want to pay with, so they don't limit their sales. This is which is why payments by cash and cheques are accepted by some retailers even on the Internet.
Whatever the POS, there are three basic functions in payment systems: 1) receive payment instructions, 2) clearing and 3) settlement as the figure below shows. The source of the payment instruction does not change these functions.
Payment Systems Available at POS
Source: J&W Associates Copyright© 2011
Payment Collection Costs at POS
The cost of collecting payments at the POS varies considerably depending upon which payment system is used. The British Retail Consortium's 2008 'Cost of Collection' survey of over-the-counter POS payments in the UK showed that the total cost per payment, including all bank charges and processes and fraud cost, was: for cash 2p, debit cards 8p, credit cards 35p, charge cards 52p and cheques 53p.
Costs of collecting payments on the Internet also varies considerably, with payments by cash and cheques being the most expensive.
Which Payment Systems to Accept at POS
Retailers have to accept the payment systems that most of their customers want to pay with, so they don't limit their sales. This is why payments by cash and cheques are accepted by retailers, even on the Internet, as each payment system has loyal users. All payment systems can be used over-the-shop-counter and over the Internet.
Usage of Main Payment Systems at Point of SaleSource: J&W Associates Copyright© 2011