Is it time to update your payment system? Signs your POS system is out of date

One of the most important elements of running a successful business is the ability to process payments quickly and efficiently. Needless to say, when your card machines are down or acting slow, not only could this mean that your customers have to wait, but it could end up costing you potential sales.

Thankfully, it's usually a quick fix by updating the software or upgrading to a newer point-of-sale (POS) model – but when is the best time to make these changes to your system?

In this guide, we'll explain the tell-tale signs that it might be time to update your payment system and when to start considering an upgrade.

Why should you update your payment system?

Over time, technology continues to advance in every field — including payments.

A decade ago, digital wallets like Apple Pay or Google Pay didn't exist, and contactless payments were a relatively new phenomenon. Now, digital payments — including the use of contactless and mobile wallets — are projected to reach heights of over 400 billion annually across Europe by 2027. With the rise in new payment methods, it can be difficult for older technology to keep up with the demand, resulting in slow transactions that are off-putting for your customers.

While it can be tempting to continue using your old card machine or payment system for as long as it continues to work, this could actually damage your business in the long run.

Many consumers expect businesses to accept a wide range of payment options, with contactless and digital wallets being especially popular. Research shows that around 30% of all UK adults are registered for at least one form of digital wallet, and our own study into consumers’ favourite ways to pay revealed that contactless came out on top.

Failure to consider shoppers’ payment preferences may result in abandoned transactions and a negative reputation.

3 signs it’s time to update your POS system

When you're busy managing your business day to day, it can be all too easy to overlook your POS system's age until it becomes a problem — either by stopping working entirely or slowing to a pace that leaves your customers waiting.

We've compiled a list of three obvious signs that your POS system could be due for an update or even a replacement.

1. Abandoned sales

We don't like to think about it, but abandoned sales are a very real threat to businesses that fail to monitor their payment systems' performance. Customers may choose to abandon a sale for several reasons, including being unable to use their preferred payment method or being confronted with lengthy wait times due to slow machines.

If you’ve noticed a slowdown in performance, a software update could potentially rectify the situation. So, it's always worth trying before you start looking for a replacement.

2. Safety

Credit and debit card technology has come on in leaps and bounds over recent years, so by sticking with an old-school payment system, you might not only be missing out on the advancements but also putting your customer's data at risk.

In the past, there have been several prominent data breaches in the UK due to out-of-date systems with poor card payment security — resulting in thousands of customers having their banking information compromised.

More recently, the Spanish airline Air Europa suffered a cyber attack in 2023 that exposed its customers' private information — including credit card details and passport information. While Air Europa never specified how many people were affected by this attack, the company previously saw another data breach in 2018 that impacted 489,000 customers and resulted in a fine of €600,000.

Failure to protect customers from these sorts of attacks can be a costly mistake for your business. Payment systems found to be not compliant with all the latest security requirements will lead to you being held liable to cover the cost of fraud, and — as we've shown above — the resulting fines can be astronomical.

3. It’s too slow

We've all been there, standing at a checkout and trying to pay by card when the machine takes what feels like forever to complete the transaction.

Given the rapid speed at which technology is evolving, it's tough for older devices to keep up with things like network requirements and programming, which can slow them down drastically. These sluggish speeds might also be due to outdated software or simple wear and tear that comes with age and use.

A slow checkout can be frustrating for customers, particularly if they're trying to make a purchase in a hurry. So, if your systems are moving slowly, check to see whether there are any available updates to rectify the issue.

How should you update your payment system?

Staying on top of software updates for your payment system can help you avoid being compromised by data breaches and maintain customer satisfaction during a transaction. It's a pivotal part of accepting card payments as a business, but how and when exactly should you launch the update to keep interruptions to a minimum?

Recently, the retail giant Sainsbury's experienced a glitch that resulted in card and contactless payments being down for several hours. This follows a string of similar instances among other large businesses across the UK — including Tesco, Greggs, McDonald's, and Asda.

Paul Cooper, Head of IT at takepayments, explains the cause, "Sainsbury's shared that the error in the payment systems was due to an overnight software update that encountered problems, which affected the ability to take contactless payments the next day. Although we don't know for sure, it sounds like the supermarket may not have tested the update sufficiently."

In this instance, Sainsbury's had seemingly done the right thing by updating its systems but may have failed to ensure the update was working before opening for business that morning.

Paul adds: "It's important for any business to test their system updates thoroughly and to keep any updates local. For example, some of our payment systems are powered by a modern platform that allows us to roll out updates gradually instead of the entire system all at once. This way, if problems do occur, the downtime for businesses can be kept localised and to a minimum."

The general consensus is that updates should be rolled out gradually overnight or outside of business hours. This gives the IT team plenty of time to thoroughly test that the update has been carried out correctly and that all systems are back up and running as expected — before customers, unfortunately, stumble across any issues.

"Investing in modern cloud-based architecture can be one way to prevent system outages in this way and ensure that your card solution providers do the same," says Paul. "Having a modern system could allow for more resilience whilst also making sure your business offers multiple payment methods — studies have found that this can increase revenue by 30%."

When is it time for an upgrade?

An update is excellent for providing a quick fix or security improvement for newer POS models. However, there will still be a time when you'll need to replace your system to keep up with new features and payment methods as they develop.

The good news is that, unless you’re using a particularly old POS system, you can usually integrate new card machines that allow you to expand the types of payment you can accept without needing to upgrade the entire system. If your main concern is being able to process payments from digital wallets or biometrics, this is a viable option to help you get the most out of your POS system without needing to spend money on a complete overhaul.

To learn more about finding the right card machine for your business, see our guide.

However, if you notice that your existing system is consistently running into issues that an update can’t fix, switching it out for a newer, upgraded system is the way to go. There is a wide range of POS systems to suit your business needs, from compact countertop models to larger designs.

Some clear signs that it might be time to upgrade your POS system include:

Consistently slow speeds —A slow payment system is bad for business. Typically, customers don’t like to wait and, in extreme cases, may even abandon their shopping if the customer in front is taking too long due to POS system speeds. Sometimes, this can be fixed with a software update, but if you’re still noticing slow performance, an upgrade might be necessary.

Needing more features —Traditional POS systems were required to process payments and store basic transaction information. Today, modern tPOS systems can provide extra insight into customers' spending habits and employee performance, and even monitor stock levels. Unlike a regular POS system, these provide real-time reports and store a wide range of data. So, if you plan to integrate your reports into a single system, upgrading to a tPOS system offers all the necessary features to make smart business decisions.

Limited payment options — Our takepayments 'Ways to Pay' study found that over half of UK consumers have been deterred from shopping at businesses that only accept cash. If you've had to turn customers away because you are unable to process their chosen payment method, this is a pretty solid sign that you need to upgrade to a new POS system as soon as possible.

Frequent repairs — Outdated systems are prone to breakdowns and malfunctions, and repairing a fault can be costly. It's not just the cost of the repair itself that can leave your business reeling. On average, businesses can lose between £65,000 to £83,000 for every hour of downtime caused by technological issues. So, if you find yourself needing to call out a technician more than once, it might be time to let your old unit go and upgrade to a newer model.

Compromised safety features —While many POS systems can install new safety features as part of a software update, there inevitably comes a time when this is no longer as effective as replacing it with a model that has better security processes by default. If your POS system is already several years old, it might be a good idea to start thinking about an upgrade.

Needing portable transaction points — While many retail businesses can operate with a countertop POS system that creates a fixed transaction point, others may benefit from the flexibility that a portable system offers. This is especially true in the hospitality sector, where paying at the table is becoming more popular. If customers or employees are becoming frustrated with being limited to carrying out transactions at the main counter, it might be time to upgrade your system to include handheld models.

Lengthy queues — Studies have found that over two-thirds of customers are only willing to wait in line for a product for around 15 minutes at most. While it's normal to see some queueing at the till, if you only have one POS machine and notice frequent long lines of customers, this could be a sign to upgrade to a multiple-machine system.

Find a POS system that works for you with takepayments

Optimising your payment system to stay ahead of payment trends is a smart move for any business.

At takepayments, we make finding the right POS system simple — offering a range of models for retail and hospitality. Browse our selection of card machines to complete your payment set-up. Our team of experts are always on hand to help you at every step of the journey, whether you need advice on meeting legal requirements or which types of updates you can expect with your chosen system.

Contact us to learn how we can help your business run smoothly, or visit our blog for the latest updates in payment processing.