Ever wondered why your CBD business is considered to be high-risk by financial institutions and payment processing providers? Above-average levels of fraud can damage your reputation, lower your profits, and lead to higher costs. 

Fortunately, your point of sale (POS) system can be a vital ally in helping you to bolster your security fortresses.

Point of sale systems defined.

A POS is a collection of hardware and software that can securely accept payments, streamline inventory and employee management, enhance relationships with customers, integrate with third-party software, and generate actionable reports.

Think of a POS as the hub of your entire business. It is made up of software that communicates with your CBD payment processing provider for fast and secure payments, and hardware (a terminal or tablet equipped with a card reader, a barcode scanner to record merchandise details, cash drawers, and receipt printers).

A good POS will become your most competent partner in all aspects of running your CBD store. In addition to taking payments securely, it records and keeps track of inventory at every stage of its journey with your shop, making inventory management and re-ordering seamless and accurate. 

The system’s database stores numerous sets of data that make everything from launching a customer loyalty program to generating actionable reports for sales forecasting possible. The POS can even assist with employee management by tracking productivity and facilitating real-time scheduling.

How your POS can help to combat fraud.

The capabilities contained in your POS can serve as a multi-pronged powerhouse in your battle against fraud. Inventory management tools provide ongoing monitoring of merchandise, secure transactions are possible via integrations with CBD payment processing solutions, employee behaviors and performance can be monitored, and sales reporting is streamlined.

Bad actors are constantly on the prowl, searching for ways to get past your security barriers. Fortunately, your POS is stocked with an arsenal of tools that can help to keep criminals far away from your precious data and other assets.

At the heart of the system is its database function. Ideally suited for storing all types of information, this digital repository is what makes the POS’s anti-fraud functions possible.

Take inventory management as an example. Thanks to your database, you know the status of every piece of merchandise under your control from the time it arrives in your warehouse, until it leaves the hands of the electronic shopping cart of your customer. 

Because you can chart this course in real-time, you will know right away when there is unusual activity, reduced inventory quantities, or another sort of discrepancy. What’s more, your system can indicate which of your employees is responsible for any specific transaction, increasing accountability and enabling you to quickly trace the source of security breaches.

Since most fraud takes place during the checkout process, it’s reassuring to know that your POS has this aspect covered as well. Because it integrates seamlessly with secure payment processing solutions that are adept in navigating the specific fraud ecosystem found in the CBD industry, the likelihood of credit card-related data breaches can be significantly reduced. 

Additionally, your POS’s database is designed to store customer details safely and in compliance with the Payment Card Industry Data Security Standard (PCI DSS) for protecting cardholder data, ensuring that no sensitive payment details fall into the wrong hands. 

Since every transaction is tracked and recorded, they can easily be retrieved in case of a question, dispute, or even a tax audit. With optimal transparency and accuracy found in every stage, there is no place for fraudsters.

Like it or not, one of the greatest sources of security breaches occurs from inside your business. In order to address the risks that your own employees’ deliberate actions and/or carelessness can cause, you can configure your POS with access controls that limit data access only to those users who need it. 

This can help to prevent unauthorized transactions. Combine that with performance monitoring and time and attendance tracking, and you can always have your finger on the pulse of your day-to-day operations and staff comings and goings.

Your POS is also on the job when it comes to reporting. It can assist you with crucial requirements such as product labeling and age verification. 

When tax time rolls around, your POS can automatically calculate what you owe, increasing accuracy and reducing your chances of being audited. Throughout the year, you can use the system’s reporting feature to detect trends and analyze customer buying behaviors.

Whether you sometimes use a virtual POS to accept payments or exclusively rely on one with a complete set of payments and business operations features, one fact remains true: Your point of sale solution can truly be a vital ally in your business’s overall security landscape. 

With its powerful database and secure storage capabilities, this system can be almost singlehandedly responsible for monitoring inventory and buying behaviors, tracking employee productivity and user permissions.

Since POS solutions are constantly evolving in response to changing consumer and security needs, don’t assume that the system you incorporated into your business five years ago should necessarily be the one that you should be using today. 

Periodically re-evaluate the options that are available, focusing on systems that offer scalability, transparency, affordability, payments flexibility, and excellent customer service. Remember that your POS will be your virtual ally, standing at your side day and night to combat fraud and data breaches wherever they might arise. 

That’s why incorporating the most up-to-date system that is in keeping with your company’s needs and goals will go a long way toward protecting you and your customers against digital criminals.