If you own a business, regardless of the industry, you must certainly offer credit/debit card payment to your customers, right? Which system do you use? EFT or POS? Do you know the difference between the two? Well, follow me because in this article I will explain the difference between the two and show you why EFT is the best option for your company.
What is POS and TEF?
POS (Point of Sale) is the solution known as a “card machine”. Do you know when you go out to a bar with friends and at the end, when you close the bill, the waiter comes back with a card machine so that you can pay right there at the table? Well, this is only possible thanks to POS.
TEF (Electronic Funds Transfer) integrates job function email database credit and debit card sales with the commercial automation system . This model is quite common in supermarkets and large stores. This is where the advantages of TEF over POS begin, and that is exactly what we will discuss now .
Advantages of TEF
In establishments such as bars, restaurants or conversion optimization steps: practical cro guide businesses that do not have a high sales flow, POS may even seem like a good option, but let’s analyze the following situations. This way, you can decide which solution is best.
Less chance of errors and fraud
For payments via POS, the establishment inserts the customer’s card and enters the amount of the sale, the customer enters their password and the transaction is authorized. But have you ever thought about what would happen if the salesperson entered an amount lower than the amount of the sale made (which could happen by mistake or intentionally)? This could result in a huge loss at the end of the month, right?!
In addition, there are numerous cases of fraud and chile business directory scams that opportunists carry out in these establishments.
When using EFT, these cases are much more difficult to occur. Firstly, because it is integrated with your management system , when a sale is made and the card payment method is chosen, the system automatically sends the amount to be paid by the customer to the PinPad (the machine that reads the card). This way, there is no risk of entering a lower amount than the sale amount.
Process automation
Using EFT, when the sale is finalized, the system automatically removes. What the customer is taking from the inventory and includes the amount paid in the company’s financial control . This way, even from a distance, the company’s managers can, through the back-office system ( SAGE-ERP ), monitor the establishment’s activity.
And that’s not all, the purchasing department can issue stock control reports and the finance department can view cash flow. Having a real forecast of accounts payable and receivable and sales commissions (when applicable).
The POS only performs the bank transaction, requiring you to manually enter the payment information into your sales system. TEF, on the other hand, works by synchronizing various pieces of information. With everything recorded in the system which facilitates bank reconciliation. And financial and management control at the end of the month.