erchant level salespeople (MLSs) have no doubt noticed the trend of some merchants moving away from the use of electronic cash registers (ECRs) and dial-up point-of-sale terminals.

Some merchants now prefer using a personal computer (PC)-based POS system. In fact, Gartner Research predicts that more than 1.8 million small U.S. retail businesses will upgrade to a PC-based system that shares transaction data with business accounting software.

MLSs might be concerned that this indicates a potential significant reduction in their equipment revenue, if these merchants no longer need a POS terminal. Or they might worry that it will adversely affect their ability to acquire new business, upgrade or convert existing merchants to a PC-based system because many PC-based POS systems have software that is not compatible with all processors.

MLSs might encounter further difficulties if the system has imbedded, exclusive connections to a merchant bank, as is the case with Microsoft Windows Rights Management Services (RMS), an information protection technology that helps safeguard digital information from unauthorized use.

But there's good news: Two companies have taken this trend and turned it into an opportunity for MLSs. Tender Retail Inc., a manufacturer of credit and debit electronic payment software, has partnered with Attitude Positive Inc., a manufacturer of small business POS systems, to create POSMadeSimple.

"This product allows the ISOs to control the entire sale, profit from the system sale and secure the bankcard relationship," said John Hughes, U.S. Business Development Manager for Tender Retail. "We see to it that ISOs and bankcard agents can profit from this new trend in small business as opposed to being damaged or inhibited by it."

The POSMadeSimple system acts as a front end for the merchant's existing business accounting software and captures and exchanges transaction information with that software. "It is not a conventional, complex POS System," Hughes said. "It is as easy to understand and sell as a modern bankcard terminal."

The system's complexity is in the accounting software, with which the merchant is already familiar. Therefore, merchants find it to be a simple, reliable software solution that captures and processes all forms of payment.

"The era of the dial-up bankcard terminal and the electronic cash register is rapidly coming to an end," Hughes said. "The merchant of today realizes the benefits of Internet-based processing and the integration of all transactional activity with the accounting and inventory systems."

Tender Retail and Attitude Positive have been in the industry for quite a while. Tender Retail was founded in 1985, and Attitude Positive was founded in 1996. Both companies have a market presence in North America, Central Europe and Puerto Rico. In fact, Tender Retail is the leader in electronic payment software in Canada and the company is rapidly expanding distribution here in the United States.

A PC-based System

What exactly is POSMadeSimple? It's a PC-based POS solution that includes both software and hardware. The system comes with the Tender Retail electronic payment software that communicates via the Internet with the bankcard platforms, eliminating the need for a separate card terminal and phone line.

The system is deployed so it's complete and ready to go once the merchant receives it. The merchant takes it out of the box, plugs it in and activates the link to the accounting software.

Information including the merchant's inventory, prices, costs, etc. is loaded into the accounting software. The system is preconfigured to the selected processing platform; there is nothing to download or set up.

What makes this product a good fit for MLSs is that it was designed specifically for banks and MLSs to replace stand-alone terminals and complicated third party electronic payment software. The system works best for small to mid-sized businesses and integrates seamlessly with QuickBooks, Peachtree and Business Works. In fact, Attitude Positive is the only POS software endorsed by Peachtree.

Transactions are instantly updated to the merchant's accounting software, automatically updating inventory, accounting ledgers and customer records. Additionally, POSMadeSimple is scalable and can be configured to incorporate any value-added solution, such as gift cards, prepaid phone cards and payroll cards.

"The system is economical, very easy to sell and even easier to use," Hughes said.

The system is available in two versions, depending on whether a merchant already has a PC or not. One version, POS PC Partner, includes everything a merchant needs to turn an existing PC into a complete POS system, including software, card reader, receipt printer, cash drawer, laser bar code reader/scanner, pole display, point-and-click screen software and free technical support.

The other version, POS Complete, includes everything that POS PC Partner does, as well as a 40 gigabyte PC, Windows XP operating system and a touch-screen monitor. Both versions are EMV-compliant and PIN-pad ready and will handle an ISO's/MLS' gift, check, phone card, EBT and other solutions.

A Product Designed With MLSs in Mind

The company specifically designed and packaged POSMadeSimple for the bankcard industry to sell. "Our customer is the MSP, ISO [or MLS] who wishes to offer a solution to their small merchant clients and have access to a prospecting tool that makes it easy to add new merchants," Hughes said.

"We have to get out of the box in our thinking and deliver solutions to agents that deliver value to the merchant. With the proper training, any MLS can convert merchants easily with this solution by saving them thousands of dollars a month in time, 'out of stocks,' cash tracking and customer management."

The company offers extensive training to agents in how to use this concept as a businessÿdevelopment and prospecting tool. "Some agents are giving talks and seminars at local chamber of commerce meetings on how to turn their QuickBooks or other business accounting software into an electronic POS system," Hughes said.

The company provides agents with Web training sessions; sales training seminars at the agent's location; a sales manual; electronic and hard copy customizable presentations; downloadable, free trial versions for prospective merchants; and cooperation with agent's lease company of choice.

"We actually will complete the sale for the agent," Hughes said. "Our sales specialist will contact the merchant, evaluate their needs in detail and close the sale for the agent." Tender Retail's mission is to teach the agent how to become an expert resource to the merchant and deliver this solution successfully.

The company uses buy rates, and agents earn 100% above cost. MLSs can acquire a method of selling small businesses as well as a significant source of profit and income.

"There is a great deal of money to be made here for the agent who is willing to learn how to take a new sale approach," Hughes said.

Other benefits to MLSs include cash profit on the sale of a system, a way to justify the conversion of their bankcard processing, and a tool to prospect and build referral business.

A Target Market

What types of merchants benefit from POSMadeSimple? "This system is ideal for any small retail, food service or personal service business of under $1,000,000 in sales who does not need a complex and expensive POS system," Hughes said. "That is 80% of all U.S. small businesses."

Merchants can customize the POS screen to reflect their products, features and applications. The system does not use a keyboard, so there's no need to learn keystrokes or codes.

Merchants and their employees simply use a touch screen or mouse and "point and click."

The touch screen is especially valuable for quick service restaurants and convenience stores or any merchant location where speed at the POS is essential.

Another feature merchants find attractive is the ability to network multiple locations from one central PC. Rather than driving from location to location and programming each station individually, merchants can add stations or make changes to the system remotely at any time.

An additional merchant benefit is that the system processes all payment types through one system and updates inventory dynamically. It also automatically generates purchase orders. Merchants can create a customer relationship database to increase business from repeat customers.

Let's Get Started

Merchants' use of PC-based POS systems over ECRs and dial-up terminals opens up new opportunities for MLSs. Those who act quickly and take advantage of this market trend will be the ones who benefit most.

Where to start? According to Hughes, "92% of all small retail businesses in the United States use QuickBooks, Peachtree or Business Works. Any of those small businesses are potential customers for the POSMadeSimple.

The program saves merchants time in data entry, eliminates 'out of stocks,' makes deposits, tracks cash and creates reorders." Sounds like a pretty good start.