We break down all of the POS terms for you!

 In Payment Card Industry News

What do you mean point of sale?

A point of sale, or point of purchase, is where you ring up customers. When customers check out online, walk up to your checkout counter, or pick out an item from your stand or booth, they’re at the point of sale. Your point-of-sale system is the hardware and software that enable your business to make those sales.

Why is it called POS?

A POS or point of sale is a device that is used to process transactions by retail customers. A cash register is a type of POS. The cash register has largely been replaced by electronic POS terminals that can be used to process credit cards and debit cards as well as cash.

According to Wikipedia, the Free Encyclopedia, the point of sale is often referred to as the point of service because it is not just a point of sale but also a point of return or customer order. POS terminal software may also include features for additional functionality, such as inventory management, CRM, financials, or warehousing.

Businesses are increasingly adopting POS systems, and one of the most obvious and compelling reasons is that a POS system eliminates the need for price tags. Selling prices are linked to the product code of an item when adding stock, so the cashier merely scans this code to process a sale. If there is a price change, this can also be easily done through the inventory window. Other advantages include the ability to implement various types of discounts, a loyalty scheme for customers, and more efficient stock control. These features are typical of almost all modern ePOS systems.

Cloud-based POS or point of sale software is web-based software used for transaction and inventory management. It helps business owners to complete credit and cash transactions. They can also generate reports to help analyze and monitor their inventory and sales. A POS system, on the other hand, is the hardware of products used together to make a system. This can include iPads, scanner, and printers.

Read on for a list of terms commonly used in our industry for the Point of Sale, or POS for short

Glossary and Definitions