POS Systems FAQs

A POS (Point of Sale) system is the technology businesses use to process sales transactions, manage inventory, track customers, and analyze sales data. Modern POS systems combine hardware (touchscreen terminals, barcode scanners, receipt printers, cash drawers) with cloud software for comprehensive business management. NZ businesses need POS systems to: process transactions quickly and accurately (reducing checkout time by 50%), accept multiple payment types (cash, EFTPOS, credit cards, contactless, mobile payments), track inventory automatically (know exactly what's in stock), generate sales reports (understand best sellers, peak times, staff performance), ensure GST compliance (accurate 15% GST calculations and reporting), reduce theft and errors (accountability and accuracy), and improve customer experience (faster service, loyalty programs, digital receipts). Even small businesses benefit - a $50,000 annual revenue business saves 5-10 hours weekly on manual processes and gains valuable insights for growth.

POS system costs in NZ vary significantly based on industry and features. Budget tablet-based systems cost $0-50 monthly software + $200-800 hardware (iPad, stand, printer) suitable for cafes, small retail. Mid-range cloud POS costs $50-150 monthly + $500-2,000 hardware for most retail and hospitality businesses. Enterprise POS costs $150-500+ monthly + $2,000-10,000+ hardware for multi-location retail, large restaurants. Popular NZ pricing: Vend (now Lightspeed Retail) $119-269/month, Kounta $99-199/month, Square POS $0 (transaction fees only), Impos $100-200/month, SmartPOS $60-150/month. Additional costs include: payment processing fees (1.5-3% per transaction), hardware (iPad $600-1,500, receipt printer $300-600, barcode scanner $200-500, cash drawer $150-400), installation and training ($500-2,000), and integrations. Total first-year cost: budget $2,000-5,000 for small business, $5,000-15,000 for medium business. Transaction fees are often the biggest ongoing cost - 2% of $200,000 annual sales = $4,000/year.

Essential POS features for NZ businesses include: Payment Processing (EFTPOS integration with NZ banks, credit/debit cards, contactless NFC, mobile payments like Apple Pay/Google Pay), Inventory Management (stock tracking, low stock alerts, purchase orders, barcode scanning, multi-location stock), Sales Reporting (daily sales, best sellers, peak hours, staff performance, profit margins), Employee Management (staff logins, clock in/out, permission levels, sales by employee), Customer Management (loyalty programs, purchase history, email receipts), GST Compliance (automatic 15% GST calculations, GST reports for IRD), Multi-payment Types (split payments, layby, account sales), Returns and Exchanges (easy processing, restocking), and Offline Mode (continue selling during internet outages). Retail-specific: variant products (sizes, colors), customer accounts, gift cards. Hospitality-specific: table management, split bills, course timing, kitchen display systems, modifier options. Integration capabilities with accounting software (Xero, MYOB), e-commerce (Shopify, WooCommerce), and loyalty programs are increasingly essential.

Cloud-based POS is recommended for most NZ businesses in 2025. Cloud POS advantages: access from anywhere (check sales on phone, manage inventory remotely), automatic updates (new features, security patches, compliance updates at no extra cost), lower upfront cost ($500-2,000 hardware vs $5,000-15,000 traditional), multi-location support (centralized inventory, unified reporting), automatic backups (no data loss), easy scalability (add registers quickly), and modern features (integrated payments, online ordering, analytics). Traditional (legacy) POS advantages: works without internet (important for areas with unreliable connectivity), one-time software purchase (though maintenance fees apply), sometimes faster processing (no internet latency), and greater customization. However, traditional POS is declining - most vendors focus on cloud solutions. Choose cloud POS unless: you have consistently unreliable internet, prefer one-time capital expense over subscription, or have highly specialized needs. Cloud POS typically costs $50-200/month vs traditional at $5,000-20,000 upfront plus $1,000-3,000 annual maintenance, making cloud more cost-effective for most businesses.

Yes, modern POS systems integrate with NZ payment providers including: Windcave (formerly Payment Express - most common NZ integration), Smartpay (popular for hospitality), Worldline (large retail), Verifone, and Global Payments. These integrations enable integrated EFTPOS (customer amount auto-populated on terminal, transaction result returns to POS, automatic reconciliation, faster checkout). Most cloud POS also accept credit card processing through providers like Stripe, Square, or PayPal (typically 1.9-2.9% + 30c per transaction). Benefits of integrated payments include: faster transactions (30-60 seconds saved per sale), reduced errors (no manual entry), automatic reconciliation (payments match sales), and better reporting (all payment types in one report). When choosing POS, verify: which payment providers integrate? Are there setup fees for payment integration? What are transaction fees? Can you use your existing EFTPOS terminal or must you use specific hardware? Most NZ banks (ANZ, ASB, BNZ, Westpac) work with Windcave-integrated POS systems, making it the preferred choice for broad compatibility.

POS systems transform inventory management through: automatic stock updates (each sale reduces inventory in real-time), low stock alerts (notifications when items reach reorder point), purchase order management (create POs, track supplier deliveries, receive stock), stock transfers (move inventory between locations), barcode scanning (fast product lookup, receiving, and stocktakes), variant tracking (manage sizes, colors, styles separately), batch and serial number tracking (for expiry dates, warranty tracking), stocktake functionality (record counts, identify discrepancies), inventory reports (stock value, aging stock, movement analysis), and supplier management (track costs, lead times, preferred suppliers). Benefits include: reduced stockouts (never run out of best sellers), lower overstock (less capital tied up in slow-moving items), theft and shrinkage detection (identify losses quickly), accurate valuations (know exact stock value for financial reporting), and time savings (automated processes vs manual spreadsheets). For retail businesses, POS inventory features can increase inventory turnover by 20-30% and reduce stock discrepancies by 60%+. Ensure your POS supports barcode scanning - manually entering products is inefficient.

Typical POS hardware includes: POS Terminal (touchscreen computer, Windows PC, or iPad $600-2,500), Receipt Printer (thermal printer $200-600, choice of 58mm or 80mm width), Cash Drawer (connects to receipt printer $150-400), Barcode Scanner (USB or wireless $150-500), Payment Terminal (EFTPOS machine $200-800 lease or purchase), Customer Display (shows items and total $150-400, optional but professional), Kitchen Printer (for hospitality, prints orders to kitchen $300-600), and Scale (for businesses selling by weight $300-1,500). iPad-based systems (like Vend, Kounta, Square) reduce hardware costs - iPad ($600-1,500) plus accessories ($200-500) totals $800-2,000. Traditional register-style systems cost $2,000-5,000 per terminal. Multi-register businesses multiply these costs. Hardware considerations: quality matters (cheap hardware breaks frequently, downtime costs sales), warranties and support (3-year warranties recommended), and future expansion (buy scalable solutions). Many providers offer hardware bundles - compare versus buying components separately. Factor replacement costs into long-term budget - terminals last 3-5 years, printers 2-4 years.

NZ POS systems must correctly handle GST (Goods and Services Tax at 15%). Key GST features include: automatic 15% GST calculation on all applicable sales, GST-inclusive pricing (prices displayed include GST, standard for NZ retail), GST-exclusive pricing (for wholesale or trade sales), mixed GST rates (15% standard, 0% for some exports, exempt for financial services), GST reports (easily generate GST summaries for IRD returns), tax code assignment (assign GST categories to products), and financial reporting (sales exclusive of GST, GST collected, for accounting). POS systems should: calculate GST automatically on every transaction, track GST collected separately, allow GST-inclusive or exclusive pricing display, generate reports showing GST on sales for easy IRD filing, and integrate with accounting software (Xero, MYOB) for seamless GST return preparation. This ensures accurate GST collection, simplified IRD filing (correct figures readily available), and compliance with tax law. For businesses registered for GST, POS GST features save hours during bi-monthly or monthly GST returns and ensure accuracy - manual GST calculations are error-prone and time-consuming.

Sometimes, but not always. Integration depends on: your current EFTPOS provider (Windcave, Smartpay, Worldline, etc.), the POS system you're choosing (which providers it integrates with), and your terminal model (newer terminals more likely to integrate). Standalone (non-integrated) mode: you can always use any EFTPOS terminal alongside any POS - you manually enter amount on terminal, customer pays, you confirm payment in POS. This works but is slower and doesn't provide integration benefits. Integrated mode: POS sends amount to terminal automatically, payment result returns to POS. This requires: compatible terminal, integration setup between POS and payment provider, and sometimes terminal reprogramming ($100-300). Options include: check if your POS integrates with your current provider (if yes, likely $0-300 setup), switch payment providers to one your POS integrates with (may involve new terminal lease $40-80/month or purchase $400-800), or continue standalone mode. Many businesses switching POS systems also upgrade payment terminals to gain integration benefits - the 30-60 seconds saved per transaction adds up (100 transactions daily = 50-100 hours annually saved). When evaluating POS, ask: which payment providers do you integrate with? What's the setup cost? Can I keep my existing rates?

POS implementation timeframes vary by business complexity: Small retail/cafe (1-2 weeks) includes hardware setup (1-2 days), product import/entry (2-5 days for 50-200 products), staff training (1-2 days), and testing and go-live (1 day). Medium retail (2-4 weeks) adds integration setup (accounting software, payment processing), more extensive product catalog (500-2,000 items), multi-user configuration, and more comprehensive training. Large or multi-location (1-3 months) requires detailed planning, complex integrations, extensive data migration, multi-location setup, and comprehensive training programs. Key time factors: product count (entering/importing hundreds of products takes time), barcode setup (creating labels if products aren't pre-barcoded), staff training (ensuring everyone can use system confidently), data migration (from old system if applicable), and testing period (running parallel with old system). Most providers offer: onboarding support (included or $500-2,000), product data entry services ($2-5 per product), and training (on-site or remote). Best practice: go live during quiet period (avoid peak trading times), allow 1-2 week overlap with old system (safety net), and expect 2-4 weeks for staff to feel fully comfortable. Plan setup during business off-season if possible.

Most modern cloud POS systems offer offline mode, allowing continued sales during internet outages. Offline functionality typically includes: process sales (with cash and card), access product catalog, print receipts, record transactions locally, and basic inventory updates. Limitations when offline: can't access real-time data from other locations, can't update cloud backups (syncs when internet returns), payment integration may not work (depending on terminal), and some reports unavailable. When internet returns, offline sales automatically sync to cloud. Offline capability varies by provider: some POS systems operate fully offline for days (Lightspeed Retail/Vend, Kounta), others only buffer sales for hours (Square has limited offline mode), and some require internet (rare for modern systems). For businesses with unreliable internet: verify offline capabilities before purchasing (test during trial), consider backup internet (mobile hotspot $10-50/month), and ensure staff know offline procedures. Traditional standalone terminals can process EFTPOS payments without internet (local phone line). Even with cloud POS, internet outages shouldn't stop sales - but confirm offline functionality in your specific setup.

Yes, modern POS systems include powerful customer loyalty and retention features: loyalty programs (points per dollar spent, visit tracking, tiered rewards), customer database (purchase history, preferences, contact details), email marketing (automated campaigns, purchase-triggered emails), digital receipts (email/SMS receipts with marketing), customer analytics (identify best customers, purchase patterns, at-risk customers), personalized promotions (targeted offers based on purchase history), and mobile apps (customers check points, receive offers). Benefits include: increased repeat purchases (loyalty members visit 30-50% more frequently), higher average transaction (members spend 20-40% more), customer data (understand your best customers), automated marketing (set-and-forget campaigns), and competitive advantage (customers choose you over competitors for rewards). Implementation: capture customer details at checkout (email or phone), reward points automatically, send personalized offers, and analyze customer data for insights. For retail and hospitality, loyalty programs can increase revenue by 10-30%. Choose POS with built-in loyalty features or integration with loyalty platforms (Marsello, LoyaltyLion) - most mid-tier POS includes basic loyalty, advanced features may require add-ons ($50-200/month).

Choose a POS system by evaluating: Industry fit (retail POS differs from hospitality - ensure industry-specific features), Business size (small business needs differ from enterprise), Essential features (payment processing, inventory, reporting - list must-haves vs nice-to-haves), NZ compatibility (GST compliance, NZ payment providers, local support), Total cost (software + hardware + transaction fees + training), Ease of use (intuitive interface reduces training time and errors), Integration capabilities (accounting software, e-commerce, loyalty programs), Support and training (NZ-based support, response times, training resources), Scalability (can it grow with your business?), and Reviews and reputation (check reviews from similar NZ businesses). Steps: 1) Define requirements (what problems are you solving?), 2) Research options (get 3-5 shortlist), 3) Request demos (see systems in action with your scenarios), 4) Test free trials (actually use systems with sample data), 5) Calculate total cost (all costs for 3 years), 6) Check references (speak to current users), 7) Verify integrations (confirm compatibility with existing systems), 8) Make decision (balance features, cost, and usability). Don't choose on price alone - wrong POS costs more in lost efficiency, poor features, and switching costs later.

Yes, many POS systems offer e-commerce integrations for omnichannel selling. Common integrations include: Shopify (most widely supported e-commerce platform, two-way sync with Lightspeed, Square, Vend), WooCommerce (WordPress e-commerce, integrates with many POS systems), BigCommerce (integrates with specialized POS platforms), and Custom websites (via API connections). Integration benefits include: unified inventory (online and in-store share same stock, preventing overselling), centralized product management (update product once, appears everywhere), synchronized orders (online orders visible in POS for pickup/returns), customer data sync (one customer record across channels), and unified reporting (total sales across all channels). Click-and-collect functionality: customers buy online, pick up in store, staff fulfill from POS. For businesses selling both online and in physical locations, integrated POS is essential - manual stock management across channels is error-prone and time-consuming. When choosing POS, prioritize: which e-commerce platforms integrate? Is integration two-way (real-time sync)? What data syncs (products, orders, inventory, customers)? Any additional cost for e-commerce integration? Most modern POS platforms integrate with major e-commerce, but verify your specific platform.

Comprehensive POS reporting includes: Sales Reports (daily/weekly/monthly sales totals, sales by hour/day, trends and comparisons), Product Performance (best sellers, slow movers, profit margins by product, category analysis), Inventory Reports (stock on hand, stock value, aging stock, stock movements, reorder reports), Employee Performance (sales by staff member, items per transaction, refunds processed), Payment Methods (breakdown by cash, EFTPOS, credit card), Customer Analytics (purchase frequency, average spend, customer lifetime value), Financial Reports (profit and loss summaries, GST reports, payment reconciliation), and Custom Reports (filtering by date range, location, category, staff). Advanced analytics include: predictive inventory (forecast future stock needs), seasonality analysis (identify patterns), profitability analysis (factor in COGS, discounts, returns), and heat mapping (popular shopping times). Good reporting enables data-driven decisions: which products to reorder, staff scheduling based on busy periods, pricing optimization, and identifying theft or discrepancies. Reports should be: accessible in real-time, exportable to Excel/CSV, visual (graphs and charts), and mobile-friendly. When evaluating POS, review sample reports - ensure they provide insights you need for your business decisions.