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POS Payment Processing for Thrift Stores 101: The What, Why, and How
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pos payment processing

As retail technology has improved over time, the methods customers are using to make purchases have also changed. While cash and checks used to be more common, customers now prefer to pay with credit cards and mobile wallets like Apple Pay and Google Pay. And for your thrift store to effectively serve all customers, you need to be able to safely accept these payment methods.

This is why a digital payment processor is so important. A processor provides devices and software so customers can easily tap, swipe, or insert a card — or use a digital wallet on their phone — creating a more convenient checkout experience.

However, not all payment processors are created equal. Some processors are managed by the same provider you use for your point of sale (POS) system, while some operate separately. 

In this blog, we’ll explain the what, why, and how of POS payment processing so you can find the best processor for your thrift store.

Let’s get started.

What Is POS Payment Processing?

Let’s take a closer look at how payment processing works. 

Payment processors provide hardware that allows customers to use cards and digital wallets, and they work with card providers like Visa and Mastercard to facilitate the movement of funds. To better understand how payment processing affects you as a business owner, you need to understand the significance of rates, and integrated versus nonintegrated payment processing.

Rates

Every time a purchase is made at your thrift store, you’re charged a payment processing fee. 

Card providers charge payment processors a fee to transfer funds, and in turn, payment processors charge you to cover these fees. The amount you pay your processor on a transaction depends on your processing rates.

Your payment processor may charge you a variable rate or a flat rate. A variable rate indicates the percentage you pay to your processor changes based on the payment method the customer uses. For example, you’d be charged a different percentage if the customer uses a Mastercard versus an American Express card. A flat rate indicates you’re charged the same percentage regardless of which payment method is used.

Before you commit to using a certain processor, make sure you understand what your rates would be so you know how much you’d actually be paying for processing.

Related Read: Credit Card Processing for Nonprofits: 8 Top Providers for 2025

Integrated vs. Nonintegrated Processing

There are a variety of both POS systems and payment processors on the market. While many providers are focused on one or the other, some providers offer POS software and payment processing within the same system. This kind of processing is considered integrated, and if a processor operates separately, it’s nonintegrated.

A nonintegrated payment processor does not offer a POS interface. You’ll have a card terminal you can use to ring up customers, but you need to manually enter the purchase amount in the card reader each time you make a sale. Nonintegrated processors charge variable rates, which sometimes leads to additional fees from the processor.

Although nonintegrated payment processing technology is more dated, these providers have been in the industry longer, and sometimes partner with POS systems.

An integrated payment processor is built into your POS system. When you ring up a sale using the POS, the total automatically appears on the card reader, meaning you won’t need to enter it manually. Integrated processors often offer flat rates, which is more transparent to business owners.

Another benefit of using an integrated system is that your POS and payment processor have the same support team, meaning if you experience technical issues, you can make one call to customer support rather than two. Because the team is knowledgeable about both aspects of the system, it’s easier to resolve these issues.

Related Read: Digital Transformation for Thrift Stores: 6 Steps To Modernize Your Business

Purchasing a thrift store POS: 7 must-have features

Why Do You Need a Thrift-Specific POS With Payment Processing?

Modern retail businesses need both POS software and payment processing. Integrated processing simplifies their setup by combining both features in the same system. The ideal setup for a thrift store is to use an industry-specific POS with in-house payment processing — a system like this includes features designed just for thrift stores.

Look for these thrift-specific features in a POS system with payment processing:

  • Donation Management: Thrift stores run on donations. You need a POS system that makes it easy to tag donations and prepare them for sale. Thrift store POS systems offer features to make donation management easier.
  • Roundup Donations: It’s a common practice for thrift stores to ask customers to round up their total to the nearest dollar, which the extra cents donated to charity. While these donations are small on their own, they quickly add up, helping your store make a positive impact on charitable causes. Make sure your integrated system allows for roundup donations.
  • Complex Inventory Management: Thrift stores follow a different inventory management process than other retail stores. Rather than many units of the same item, thrift stores tend to have many unique items. Find a system that accommodates the specific inventory management needs of your thrift store.
  • Flexible Pricing: Thrift stores also tend to adjust their prices frequently. When stubborn items need to move, discounts encourage customers to make more purchases. Find a system that makes it easy to adjust prices storewide when needed.

Related Read: Thrift Store Donation Campaigns: 5 Strategies for Successful Drives

How To Implement POS Payment Processing at Your Thrift Store

The first step to implementing POS technology with payment processing at your thrift store is to select your provider. Researching multiple options allows you to compare prices and features so you can determine which option is the best fit for your thrift store. Look for a POS solution that has all of the features you need, rather than a generic retail system that requires you to pay for add-on functionality.

Once you’ve determined which processor you’re going to use, the next step is to be onboarded. Most providers offer extensive training for you and your employees so you’re comfortable with the system by the time you activate it. 

During this stage, make sure to ask plenty of questions. The more experienced you are with the system, the easier the process of implementation is. Look for a provider who offers continual customer support to help you resolve issues in the future.

Related Read: Nonprofit Thrift Store Software: Must-Have Features + 3 Providers

ThriftCart: POS Payment Processing Just for Thrift Stores

Digital payment processing makes the use of modern payment methods like chip cards and digital wallets possible. Modern retail businesses need payment processing, but that doesn’t mean your thrift store should settle for the first processor you find.

To help you run your thrift store, you also need a POS system, which provides an interface for you to manage inventory, ring up transactions, and run many other aspects of your business. By using a POS system with a built-in payment processor, you can simplify your setup and create a better customer experience.

ThriftCart is a cloud-based POS and e-commerce platform that’s designed specifically for thrift stores — and offers integrated payment processing. With ThriftCart, you can easily manage donated items, offer roundup donations, and adjust prices. And because there’s no need to manually enter data with an integrated processor, you can reduce errors and create a faster checkout experience. With a full suite of both general and thrift-specific features, you’ll have everything you need to run your thrift store.

To see the difference ThriftCart can make for your store, schedule a demo today!

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