This is a list of terms commonly used in talking about point-of-sale systems.
POS. Abbreviation for point of sale.
Terminal or credit card terminal. A piece of hardware used to process transactions.
Interchange-plus pricing. A common pricing model used by credit card processors. The word “interchange” refers to a fee that major credit card companies charge. This fee changes from transaction to transaction, so interchange-plus pricing is whatever the major credit card company charges plus the fees of the credit card processing company.
Digital wallet. A kind of payment method made via smartphone. Customers will have apps like Apple Pay or Android Pay on their phones that they’ll want to use to purchase items at your store. There are also online-only digital wallets and checkouts, like PayPal and ChasePay. These payment methods make for faster online checkouts.
Swipe. Swipe payments use the magstripe on the back of the card.
Dip. Dip payments use the EMV chip on the front of the card.
Tap. Tap payments use an embedded chip that emits radio waves and connects to the card reader.
ACH. This acronym stands for automatic clearing house. It’s an online network for processing transactions between financial institutions.
Cryptocurrency. A type of digital currency made popular by the rise of Bitcoin. These currencies are decentralized in that no official governing body distributes them. Coins or tokens held in these types of currencies are not physical entities; they are digital only.