Did you know that you most likely interact with a point of sale (POS) system every day? Whether you are aware of it or not, our team from Payeex Payment Processing is here today to define what these systems are and how they work. From restaurants to retailers, owners of these establishments must have a payment register in order to process transactions – this is where POS systems come in.
What Is a POS System?
A POS system includes both software and hardware components that collaborate to facilitate a transaction. For a business, restaurant, or store, it acts as an essential tool to manage various operations.
- POS Software: This is often referred to as the brain. The software can manage transaction processes, inventory control, and customer/staff management.
- POS Hardware: This is known as the physical elements of the process. This includes the cash register, associated devices, etc.
Together, the software and hardware components work jointly in order to provide both the business and the customer with a seamless transaction and it helps to manage and understand the health of the business.
How Does a POS System Work?
Here is a step-by-step breakdown of how a typical POS system works:
- A customer decides to purchase a product, service, or item from a business
- The POS system is equipped with inventory and price information to calculate a total
- The customer decides to purchase with their card, cash, or digital payment
- The sale is finalized on the POS system
- The POS system adjusts its inventory to reflect the available stock, and it updates the sales data
POS System Vs. Point of Sale
While POS does stand for “Point of Sale”, these two terminologies mean different things.
As discussed, the POS system is defined as the combination of hardware and software to facilitate a transaction at the point of sale. On the other hand, the point of sale is commonly defined as any location where a transaction occurs. For example, this includes all physical locations where a customer settles their bill. In a restaurant, this would be at your table when a waitress brings over the bill, or if you are at a golf course, this would be at the pro shop. When it comes to cloud-based POS, this POS system lives beyond a physical location as the system can essentially be accessed from anywhere.
Knowing the difference between a POS system and a point of sale is important for someone who is in the role of business operations. Knowing how to efficiently communicate and articulate your business needs is essential when it comes to decision-making and the management of business operations.
How Our Payment Processing Team Can Help
In conclusion, the POS system plays a key role in modern-day commerce. For a business, the right payment solutions company must be hired to take operations to the next level. At Payeex Payment Processing we can empower your business with our state-of-the-art POS systems. To get more information, contact our team at (905) 947-9818.