NFC cash register systems

NFC checkout systems

In the following, we provide an overview of checkout systems, and more specifically how they work in conjunction with NFC. POS systems are typically encountered where a transaction takes place in the form of a payment for a good or service. NFC technology simplifies this process and also creates new opportunities. Transactions at checkout systems should be divided into two classes at this point. The payment of sums of money with an official means of payment, such as cash (euro) or the EC card as an electronic variant, is referred to as an open money circuit. This type of payment is the most common in everyday life. In contrast, there are closed money circuits, which are tied to specific places with specific means of payment. An example of this is a Mensa card, which has to be loaded in advance and replaces cash, but is only used in the respective Mensa. By integrating NFC technology, the former systems are able to accept payment from NFC credit and debit cards, as well as by NFC smartphone with an NFC payment app (see the article NFC payment for more details). The latter allow the use of NFC, for example, in the form of prepaid or postpaid cards. Irrespective of the two variants, the transaction is carried out at corresponding cash register systems, which record and document the process. Depending on the hardware used, POS systems can be used in different ways in practice. Mobile variants, such as radio-linked EC payment terminals, enable payment directly at the customer's premises and are therefore also referred to as point of sale (POS) systems. In restaurants, for example, these allow payment to be made directly at the table of the respective guest. This contrasts with payment at stationary checkouts, which the customer has to go to, such as those typically found in supermarkets.

NFC POS systems in open cash cycles.

In an open cash cycle, official (government-legitimized) means of payment are used. The open cash cycle is found, for example, in regular retail outlets such as sales centers or supermarkets. In addition to cash, electronic means of payment in the form of EC or credit cards are used here. NFC simplifies the payment process by enabling contactless payment. The card simply has to be held up to the reader. After that, a transfer takes place automatically, usually without any additional PIN entry. For more on contactless payment, see the article on paying with NFC. NFC technology also enables payment by smartphone. In addition to an NFC-enabled smartphone, this requires corresponding wallet apps that enable payment with a credit card stored in the app. NFC POS systems that support the open loop are, for example, "Kasse Speedy" or "SumUp". These POS systems are used both in retail and in services.

NFC POS systems in closed cash cycles.

In a closed loop system, the payment cycle is managed internally. This means that account balances and transactions are not made with an official means of payment, but through a currency that is only valid within a defined framework. A distinction is made here between prepaid and postpaid approaches. In the former, a means of payment is "topped up" in advance; in the latter, billing takes place after use. In order to use a prepaid card, credit must first be paid in. Cafeteria cards are an example of this. They are topped up and can be used immediately afterwards at the cash desk. Postpaid cards are used, for example, at closed events (e.g., discotheques). Here, consumption is recorded on the card and settled with an official means of payment when leaving the venue.

NFC products for NFC POS systems

NFC cards represent a typical medium for implementing closed payment loops. The uniqueness of the NFC chip, as well as the security functions that depend on the chip set, provide the necessary technical prerequisites for creating closed loops. Moreover, the manageable purchase price makes the loss of the cards bearable for the operator. However, payment cannot be made exclusively with a card. In principle, the required NFC chip can be integrated into a wide range of products for use with the NFC POS system in use. For example, payment can also be made with an NFC-enabled key fob or a wristband or similar. Custom branding makes the product and event stand out accordingly. We are happy to advise you to find the appropriate product.

Conclusion NFC checkout systems

In summary, NFC adds value to point-of-sale systems. NFC technology enables contactless payment at POS systems and simplifies the process. Especially with the closed-loop systems presented, individualized NFC products can be used to stand out from typical payment cards.