How To Compete Against Banks Selling POS Systems

By TJ Trojan, Senior Vice President, Product Management, SYNNEX Corporation

Over the last few years, POS VARs have seen their territory encroached on many different fronts. With revolutionary mobile payment solutions like Square becoming prevalent in the marketplace, selling POS to small businesses has become so competitive that many VARs are walking away altogether and missing out on lucrative opportunities. One of the greatest hurdles in the current marketplace is understanding how to compete with banks and financial institutions that sell POS. With a little research and understanding, it is clear that VARs can effectively compete. Here are a few of the drawbacks of buying POS systems from banks and a look at how VARs can step in as trusted advisors to lead end-users through POS deployment from start to finish.

1. Hidden Fees And Conditions. POS systems offered by banks are often loaded with back-end support charges, cancellations fees if you decide not to install after your initial commitment, and hidden terms and conditions that can lock you into up to a five-year contract with the provider. Many of these agreements leave users with obsolete POS equipment long before the end of their contract, as some banks are still using commercial PCs as POS terminals. The old adage that “you get what you pay for” rings true here. Trusted VARs, however, are able to provide the end-user with full expectations up front. While the end-user may have to pay more up front when buying through a VAR, they can rest assured they will be equipped with top-notch hardware and support offerings throughout the process and a better understanding of what they are paying for and why.  

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