The point-of-sale system has undergone a major transformation, changing the tide of managing transactions and customer interactions between retailers and customers. The shift to a cloud-based POS system has improved retailers' management of their transactions. Despite this, new issues, such as data security, arise with this change.

Cloud-based POS systems help eradicate such threats by providing significant security features that can allow a business and its customers to be safe. In this blog, we will go into key security features of cloud-based POS systems and why it's vital to modern retail operations.

1. Encryption and Data Security

The most important security function in relation to a cloud-based POS system is encryption. Encryption means that sensitive information such as credit card details and client information is secured at the transmission point between the POS device and the cloud server. What this really means is that if hackers intercepted some data, it could not be read without a decryption key.

Most cloud-based POS systems make use of SSL encryption that provides an encrypted channel of data. Advanced systems also take advantage of end-to-end encryption that ensures data is kept safe all the way from the time it was first entered into the POS terminal to when it is eventually stored in the cloud.

2. Two-Factor Authentication (2FA)

As cyber attacks have become more technologically sophisticated, you cannot simply rely on passwords for unlocking your POS system. The 2FA is the more significant level of security that calls for verification of identities through two different modes: a password and a one-time code sent to a mobile device or an email.

2FA reduces the chances of unauthorized access to an ATM or POS system, such as hacking passwords. This is pretty crucial for a business where one person is not going to access the entire system, and hence only a few selected people shall be authorized to carry out sensitive operations like refunds or voids or access customer records.

3. Software Updates and Patches

Hackers are always on the lookout for that one weak spot in software to exploit. Meanwhile, a cloud-based POS system is continuously updated by the service provider. So the patches for its software not only update its core functionality but also address those security holes fast.

One of the most apparent differences between on-premise systems and cloud-based systems is that on-premise is often tied to lagged updates, which cloud-based systems avoid. This automatically allows the system to receive the latest security features without having to go through employees. In this aspect, it is proactive in terms of dealing with breaches in data and other security-related issues.

4. Role-Based Access Control (RBAC):

Cloud-based POS systems usually incorporate role-based access control, where the employee is granted different levels of access based on their position in the company. For example, a cashier has very basic functions—a transaction-type of procedure—while a store manager would have more advanced operations with regard to reporting or possibly refund procedures.

RBAC ensures that a business grants access to sensitive information and system capabilities only to those who require them, ensuring no possible internal fraud or even an inadvertent leakage of data. Through restricted access to specific features, businesses hold greater control over their activities while ensuring that customer data remains secure.

5. Data Backup and Disaster Recovery

Businesses need to have a well-tested backup and recovery plan in the event of a security breach or even a system failure. Cloud-based POS systems offer an automatic data backup. This enables automatic saving and storage of secured transaction histories, inventory records, and customer data.

The cloud-based systems can recover data in real-time to reduce the recovery time for disasters, like equipment malfunction, hacking, and natural calamities. This helps safeguard the business from a data breach and guarantees business continuity.

6. Industry Compliance

Another security feature for customers' data is the observance of certain industrial standards and regulations made available by cloud POS. 

These are cloud-based POS systems secured that will handle cardholder information accurately without risking fraud and data theft. Several systems, besides, comply with the GDPR and other data protection laws of various countries so as to secure customers' private information.

Conclusion

Point of Sale systems hosted in the cloud give much advantage and capability to modern retailers, from real-time transactions to a better experience for customers. However, these demand robust security measures to ensure safety, especially at the integrity of business and customer data. Cloud-based POS systems feature encryption, two-factor authentication, role-based access control, and scheduled software updates for a secure operation platform.

For retailers who want to incorporate into their business cloud-based POS solutions that boast top-notch security, ETP Group is there with all-round retail technology solutions aimed at meeting the highest standards of security and performance.