How to Set Up a POS System

The first debit cards appeared in the wallets of Ukrainians in 1996. Now almost every adult has a card. According to the RBR's latest Global Payment Cards Data and Forecasts to 2027 report, there were 25.2 billion cards in circulation in 2022 — more than three times the world's population. In Ukraine, according to the results of 2021, there were 46.3 million payment cards — more than the country's population. Now, a POS terminal for business is something usual, and if the point of sale still does not have a terminal, then it is time to fix it. In this article, we will talk about how to do it.

Reference: POS system (aka POS terminal) is a special equipment for accepting cards and automatic bookkeeping.

Who is obligated to have a terminal

According to the current version of the Law of Ukraine "On Payment Services", all individual entrepreneurs that use the registrar of settlement transactions must accept card payment. First of all, these are entrepreneurs with an annual income of more than 1 million UAH. Exceptions are provided only for businesses operating in settlements with a population under 25,000 people and a few more narrow categories of individual entrepreneurs.

A business that operates without a POS system (only accepts cash) risks receiving a fine — 3,400 UAH for the first time and 17,000 UAH for repeated violations within a year.

But even if your business is exempted from the obligation to have a terminal according to the law, it is still irrational to refuse it. According to the data of the National Bank of Ukraine for 2020, 86.9% of all payments in Ukraine were cashless. It is more convenient for most buyers and clients to pay with a card than with cash. Many of them do not have cash with them at all. Rejecting the terminal in this case means losing a huge part of your target audience.

How to set up a POS system for business

If you want to install a POS for your business, it is enough to prepare a place for it near the cash register. All you need is a socket and access to the Internet. You don't have to deal with installation and configuration alone — this will be done for you by a company that provides acquiring services. It remains for you to choose this company and decide on the equipment. Therefore, let's not dwell on how to set up a POS system, but let's go straight to the choice.

How to choose a company that provides acquiring services

Today, there are more than 50 banks and companies in Ukraine that provide acquiring and processing services. The three market leaders include PrivatBank, Oschadbank and Raiffeisen Bank Aval. But you can get acquainted with the offers of other companies, because they may be more suitable for your business. There are many options for installing a POS system. Acquirers have different:

• Commissions
• Fees
• Monthly subscription prices
• The cost of connecting the service (it can be paid or free)
• Personal account
• Conditions of withdrawal and accumulation of funds
• Discount and bonus programs
• Partner programs
• Special proposals

For different companies, different services may be more reasonable. For example, if your business is a small shop with a small annual turnover, then the installation cost and monthly fee will be of great importance to you. And if you have a large turnover, then this will not play a big role for you, but the commission will be much more important. Also, your choice may depend on how often you intend to withdraw funds from the corporate account. Some banks offer favorable accumulation conditions for the account balance. To choose how to set up a POS system, you can compare acquirers yourself or use the advice of an accountant.

FAQ

How much does a POS system for accepting cards cost?

The cheapest terminals are mobile. They are not autonomous, but work when tied to a smartphone. Such terminals cost about 5,000 UAH. A standard terminal with full functionality will cost about 10,000-20,000 UAH. Cash register terminals (with a monitor) can cost 20,000-40,000 UAH. The price may vary depending on the configuration. You can also rent a terminal from the acquiring company.

How much does it cost to set up a POS system?

Most acquiring service providers offer free installation and configuration of the terminal.

Do I need to pay for terminal maintenance?

Yes, most of the time you, have to pay a monthly service fee. The subscription fee for most providers is about 500 UAH.

Is it possible to install a POS system if my business is allowed to operate without a terminal?

Yes, you can also install the terminal on your own initiative.

How to connect a POS system to the Internet and set it up by myself?

This cannot be done. It is necessary to conclude a contract with a licensed service provider.

What is needed for a POS system installation contract?

You will need a copy of your national passport and ID number, corporate bank account number and documents on ownership or lease of the premises. The bank or company may also require additional documents.

Crypto POS system

Crypto POS systems should be installed separately. Such equipment will allow you to quickly, conveniently and legally accept payment in Bitcoin and other digital coins. Currently, this direction is developing rapidly and has great prospects in Ukraine, as the country is among the TOP 3 countries in the world in terms of the number of crypto users per capita.

You can’t order a crypto POS system from an ordinary acquirer such as PrivatBank or Oschadbank — they do not provide such services. There are only a few companies operating in Ukraine that provide crypto acquiring and crypto processing services. One of them is Whitepay.

A crypto terminal, unlike a regular terminal, is not mandatory, but more and more points of sale ask Whitepay for installation in order to use the new payment method to attract new customers from among cryptocurrency users. Those who have installed a crypto POS system can accept payment in BTC, USDT and other popular crypto assets. The risks associated with the volatility of cryptocurrencies do not apply to business, as the system automatically recalculates the price in UAH at the exchange rate at the time of payment.The same amount is received on the corporate account as would be received when paying with a regular card.

Today, such terminals already work in a number of companies, such as the chain of clothing stores MD Fashion, wine stores OKwine and others. Crypto payment on the spot does not take much time — it is close to the time it takes for a person to insert a card and enter a PIN code. To order a crypto POS system, you need to contact Whitepay to discuss the terms.

So today, a business that doesn't accept a card is the exception to the rule. Over the years, more and more Ukrainians prefer to pay by card. The Ukrainian market has actually switched to cashless payment and is taking the first steps towards the next stage — crypto payments. It is a rarity today, just as debit cards were a rarity in the 1990s. However, this direction is developing rapidly. In 5-10 years, the question "How to set up a crypto POS system" may be as frequent as "How to set up a POS system for card payment" today.

Read our other articles to learn more about POS!