POS exception reporting is still viewed as new but it’s celebrating its 10-year anniversary of mainstream c-store and gas station chain adoption. Here is what you should know and worry about as a c-store or gas station owner.
What is point-of-sale (POS) exception reporting?
This technology has evolved and so it can be described quite differently based on the application, software, and hardware for each retailer. At its core, it is a software solution that analyses a retailer’s point-of-sale (cash register) transactions and flags transactions that have a historic or perceived risk. This risk may involve specific types of high-value inventory, such as beer or cigarettes, or payment types, such as cash.
With the advances in technology, its integration to other systems, such as video surveillance, it is also helping to find new applications such as workers compensation.
Why this is needed? Possible ways to make false POS entries…
Some POS transaction keys enable a cashier to open the register drawer, accept cash, and make change without recording a sale. These include keys such as No Sale, Cancel Age Verification, Price Look-Up, and “Hot” keys. These can create the impression of a sale without there ever being a sale. This is especially true for multiple-items sale transactions.
C-Store owner pricing practices create their own risk gaps.
Some c-store and gas station owners open themselves up to fraud through bad shelf labeling and price book practices. This creates a risk gap since the volume of price checks at the store will be out of the industry norm and hard to track even with the best POS exception solution. With every price lookup, the key is pressed and the product is scanned, and the price is displayed on the monitor. Why is this a risk?
In a multi-item transaction, a cashier can ring up a few cheap items and then use the price look-up to scan other items without recording the sale. With part of the sale recorded, the register drawer opens and the full amount is handed over to the cashier and then only a part of it, or none of it, ends up in the till after the customer walks away.
What video-integration with exception reporting can show you.
- Whether the item that was price-checked was handed over to the customer
- Whether any cash was handed over to the cashier
- Whether the cash handed over to the cashier ended up in the cash drawer
- Whether the customer seemed of age when the age verification key was overridden
I’ll follow this up with a more detailed technology article but please leave questions or comments below!