What's The Difference Between a POS and Payment Processor?

What's the Difference Between a Point-Of-Sale System and a Payment Processor?

A Point-Of-Sale (POS) System: If you want to take credit and debit card payments and/or have a system for keeping track of sales and inventory a Point-of-Sale SYSTEM, is where it happens. A POS System is specifically built to help run your business efficiently and effectively and can also help reduce theft and fraud because all transactions and people are being tracked.

Two options for a good POS are Microsale and Clover System

A Payment Processor: The payment processor is a service that communicates transaction information between the merchant, the issuing bank, and the acquiring bank. The processor manages the credit card transaction process by acting as the communicator between the merchant and the financial institutions involved.

Functions of a POS System and a Payment Processor

A POS System: Accepts payments, track sales & inventory, add tax, create receipts and much more.

Payment Processor: Relays the message of financial information between two source to get funds transferred to and from where they need to go, helping navigate the funds from start to finish.

There are many payment processor options out there and Champion Payments is a top rated choice when in the market for a processor.

How they both come into play during a purchase

Both are important steps in the process of a payment transaction. When a customer is trying to purchase something they use their payment (credit card, cash, etc) at a POS System, next the payment processor exchanges the information from the buyer's bank to the sellers bank in a secure and timely fashion. They are essentially the necessary  but invisible middle man you need to accept credit & debit card payments in your business.

These small business solutions go hand-in-hand, so At Champion Payments we take care of both for you.  We are your Payment Processor to securely handle all of your credit card transactions, and we also set you up with the right Point-of-Sale system for your business to run as smooth and efficiently as possible.

Connect today, win tomorrow.