The Tortoise Looses When it Comes to Point of Sale

With high-demand products sending an influx of shoppers to the malls, retailers need all the help they can get to keep the lines moving.

The switch from dial-up connection to a high speed Internet connection, such as DSL, to process transactions has benefited many retailers as they are able to serve more customers in a shorter amount of time.

However, there are still retailers that use dial-up connections, usually smaller businesses, because they lack the knowledge of technology and the cost of switching. Some retailers may not know an alternative to dial-up exists. Despite the benefit of a high-speed Internet for some, dial-up is the norm. As well, smaller businesses need to have a switch that can easily and affordably be integrated with their existing network configurations.

But what many retailers fail to understand is that although there may be cost in the switch, the upgrade to a high-speed Internet connection will actually pay off in the form of increased business and customer satisfaction.

The switch to high-speed Internet connections to process sales transactions can reduce a 30-second approval to a 2-to-3-second approval time. The reduction of transaction time will then result in shorter check-out lines, and thus happier customers. A dial-up connection has to take time to dial, connect, wait for approval and initiate the primary modem negotiation. Then information has to be sent back. But with a high-speed Internet connection the Internet is always connected and these time-consuming steps are taken out of the equation. The two machines on both ends ý one at the bank and the other at the store ý have already established a ýconversationý with each other and are ready for the next ýnegotiationý to happen at any time.

As well, for retailers concerned about cost, a high-speed connection can reduce the cost of accepting payments in terms of equipment and administrative tasks. For some retailers, a dial-up transaction needs to be reconciled with a software program, such as accounting software, in the computerýs system, which could mean someone has to physically crunch the numbers. But with a high-speed connection, which has been integrated into the existing system, this step is avoided because the data is sent directly to the software program.

The reduction of point-of-sale equipment is yet another benefit of making the switch from dial-up to high-speed. The POS usually includes a terminal and computer that is connected to the terminal which processes the transactions. An upgrade to a high speed Internet connection at the POS would also get rid of the cost that is associated with dial-up, such as the extra, unnecessary telephone lines.

With a high-speed Internet connection there can be multiple lanes converted from the dial-up that could process transactions faster, which would allow retailers to help more customers without the cost of adding new lanes.

The switch from dial-up to high-speed Internet may seem daunting for some, but with the right help, the process can be quick and easy. As well, the benefits, such as increased customer satisfaction and quicker processing of transactions would pay off the initial upfront cost of the switch.

Henny van Droven is a specialist in business Internet solutions at SmarttNet (www.smartt.com), a Vancouver company offering comprehensive Internet services including, but not limited to high speed DSL, remote file backups and search engine optimization.

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