E-commerce
Reselling Point of Sale Software: Navigating Legal and Strategic Considerations
Reselling Point of Sale Software: Navigating Legal and Strategic Considerations
Are you considering becoming a reseller for point of sale (POS) software? The decision to resell POS software and hardware requires careful consideration of legal and strategic factors. This guide will explore the implications of reselling POS software, the complexities of hardware integration, and the benefits of working with established payment processing companies.
What is a Point of Sale Software Reseller?
A point of sale (POS) software reseller is an individual or business that sells and supports POS software to potential customers. This can be a lucrative business opportunity, especially when combined with a credit card processing program. POS software resellers can earn significant commissions and residual income by setting up retail or restaurant business owners to accept payments efficiently and securely.
Benefits of Becoming a Reseller
Reselling POS software, whether from a payment processing company or an independent software vendor (ISV), offers several advantages. For one, the integration with a payment processing program can streamline the entire transaction process for consumers. This not only enhances customer satisfaction but also decreases the administrative burden on the business owner.
Commissions and Residual Income
POS software resellers often earn lucrative commissions based on the number of sales and the ongoing revenue from merchant accounts. Additionally, setting up merchant services can provide residual income, as the business continues to earn a percentage of sales from the transactions processed through the merchant account.
Challenges in Reselling POS Software
While reselling POS software can be profitable, it is essential to address key challenges. For example, simply reselling NCR software without NCR terminals would not be feasible. The value proposition of any POS system lies in its ability to function as a cohesive solution. Customers require the hardware to operate the software, and making such a sale without the necessary hardware would be unrealistic and unbeneficial.
Integrating Hardware and Software
The seamless integration of hardware and software is a critical aspect of any POS system. A POS reseller must ensure that the software they sell is compatible with the necessary hardware. Furthermore, providing comprehensive support for both the software and the hardware becomes crucial to the success of the sales process.
Working with Established Payment Processing Companies
To effectively resell POS software, it is beneficial to partner with established payment processing companies. These companies often offer robust accounts, developer support, and comprehensive training materials. They can provide the necessary infrastructure and technical assistance to support your reselling efforts.
Legal and Compliance Considerations
Before becoming a POS reseller, it is essential to consider legal and compliance issues. Ensure that you fully understand the terms and conditions of the reseller agreement, including any restrictions on the software and hardware you can resell. Additionally, comply with local and federal regulations related to payment processing and data security.
Conclusion
Becoming a point of sale software reseller can be a rewarding endeavor, but it requires careful planning and execution. By understanding the challenges associated with hardware integration, partnering with established payment processing companies, and complying with legal and regulatory requirements, you can successfully navigate the landscape of POS reselling.