The abbreviation of POS is “Point of Sale”. POS is a system which refers to any place where a transaction
can happen, whether it is, for a product or service. In other words, POS is the place, where your
customer makes a payment for products or services at your store. In a store, a POS is where, the
checkout happens, orders are processed and bills are paid. It can be in a physical store, where POS
terminals and systems are used to process card payments or a virtual sales point such as a computer or
mobile electronic device.
A POS System is the overall hardware and software system used for billing in a POS Store.
Note:- Card readers have also become an integral part of a POS system.
Hardware Components of a POS System
POS system typically contains following hardware:-
- A display unit- to show the billing
- A keyboard/touchscreen device- to select products and enter data
- Barcode scanner -to scan billed objects
- A Printer -to print the receipt
- Cash register – for storage of cash obtained during sales
A software interface- to complete the process
Advantage of POS System
- POS eliminates human errors and save money in the long term.
- POS monitors your sales records and alerts you when stock is running low.
- POS keeps accurate record of daily transactions and report about the volume of the stock.
- POS makes it easy for you to look up past transactions.
- POS is faster from authorizing a credit card transaction to printing a customer receipt.
- POS reduces the chances of user errors because the software checks to ensure that the
information entered is accurate and correct.
- POS allows you to add promotions and discounts on the products.