What are Corporate Credit Cards? – Different Types of Cards
February 12, 2025
Return on Invested Capital (ROIC) is another popular metric that is used widely in financial analysis. The reason for its popularity is that like ROA, ROIC can be used by both equity and debt holders. Also, like ROA, it provides data about return to the company as a whole and is not affected by leverage. […]
We already know that sports leagues have several sources of revenue. Some of these sources have been continuing for a long period of time such as ticket sales and sponsorships. On the other hand, there are some sources of revenue that have evolved fairly recently. For example, the generation of revenue by the sale of […]
In the previous article, we have already read about cryptocurrency forks. We now know that a cryptocurrency system is basically software. Just like the software on our phones and laptops cannot stay static, the software responsible for cryptocurrencies cannot stay static either. It needs to be changed from time to time. The changes are done […]
We have seen that a perpetuity represents an infinite stream of future cash flows. However, we have also seen that as time passes the value of these cash flows constantly diminishes. $100 may be able to buy us quite a few goods today, but in 50 years time $100 will not be nearly as valuable […]
A successful business is built before there is one. The way any business is structured has very long term implications on how it is taxed. Also since markets provide almost the same return to everyone, the ability to avoid taxation is a major competitive advantage for any hedge fund. Therefore, over the years hedge funds […]
With the advent of technology, more and more people have started accepting digital payments. This means that corporations have to provide their customers the option to make payments using a wide variety of payment methods. Some of these payment methods are electronic whereas others are not. Commercial banks have identified the possibility of providing good services to their clients by providing an automated point of sale system which helps these corporations provide more convenience to their customers.
In this article, we will have a closer look at what point-of-sale systems are and how commercial banks utilize them to provide value-added services to their customers.
A point-of-sale system is a combination of hardware and software which allows any merchant to take payments from their customers. The point-of-sale system has been created to accept payments from a wide variety of payment methods. This can include traditional methods such as checks and cash. On the other hand, it generally includes more modern methods such as credit cards with magnetic stripes, credit cards with integrated chips, mobile wallets, and digital payments using the quick response (QR) code.
A point-of-sale system is a set of hardware and software which communicates with other banks and payment processors in order to make digital and contactless payments possible. Since most of the sales in the developed world are done using electronic payment methods, a point-of-sale system becomes very important.
Commercial banks provide their customers with this point-of-sale service in return for a fee. Commercial banks charge the customer's account, provide settlement data at the end of the day and transfer the cash to the bank account of the merchant without any significant delay.
Point of sale systems are very important for corporations across the world. This is because a lot of purchases made by the modern consumer are impulse purchases made instantaneously. Hence, businesses want to have a point-of-sale system that allows consumers to have as many payment methods as possible, and also the payment should be processed as quickly as possible. Businesses across the world have the need for a high-tech point of sale system which they can strategically utilize in order to grow their business. Commercial banks have the capability to provide these services to these business houses.
Commercial banks charge a transaction fee when funds are routed through their systems. Hence, if a merchant receives $100 via a point-of-sale system, they may receive only $98 after deducting a commission. The percentage of commission being taken becomes smaller and smaller as the volume of transactions increases.
Large-scale retailers pay a very small percentage of their revenues to commercial banks. Revenue from point-of-sale systems is a significant contributor to the overall revenue being generated by commercial banks.
Nowadays, banks have started facing some competition from newer more technologically advanced fintech companies. However, even to date, the business of point-of-sale systems is almost completely controlled by commercial banks.
There are many benefits provided by point-of-sale software systems which make them very popular amongst businesses. The details of these benefits have been mentioned below:
The bottom line is that point-of-sale systems are a very important commercial banking service that is offered to corporate clients. Point of sale systems has moved beyond being transactional devices to becoming strategic marketing devices.
Your email address will not be published. Required fields are marked *