Product guides 6 min read
Card terminals and your POS: the integration models explained
Standalone, semi-integrated, cloud terminal APIs and hosted checkout — what each means for your staff, your reports and your compliance scope.
By the Smile Software team
When people talk about 'connecting a card machine' to a POS, they can mean very different things. The integration model affects how fast checkout is, how accurate your reports are and how much of the payment security burden sits with you.
1. Standalone terminal
The terminal is not connected to the POS. Staff type the amount into the terminal by hand. It is simple and works with almost any provider, but it invites keying errors and makes reconciliation manual.
2. Cloud terminal API
The POS sends a payment request to the provider's cloud, which forwards it to the terminal. The result comes back the same way. Several large providers offer this model. It works across networks and is easier to deploy, but depends on internet connectivity.
3. Local network integration
The POS talks to the terminal directly over the local network. It can be faster and can keep working with limited internet, depending on the provider. It requires more careful network setup and is supported only for specific devices.
4. Provider-hosted checkout (online)
For websites and apps, the provider hosts the payment page or embeds secure fields. Card data goes straight to the provider. Your system receives the result by redirect and webhook.
5. Online payment API
Your backend creates and manages payments through the provider's API, while card details are still collected by the provider's components. This gives the most control over flows like partial captures and refunds.
What to ask
- Which models does the provider support for my country and device?
- Is the integration certified or reviewed by the provider?
- What happens when the internet drops?
- How are refunds initiated — from the POS or the provider dashboard?
- How do payouts and fees appear in reports?
Availability always depends on the provider, the country, the specific device, merchant onboarding and the integration method. A vendor who says 'we support every terminal' is either very large or not being precise.
