Point of sale software is installed on POS hardware, and it’s powered by either a local server or internet connection. With a computer, you install the type of software (or app) you need - for example Microsoft Word to create documents - locally on the hardware or use web-based applications like Gmail for email that you access over the internet.Ī POS system works in much the same way. However, to understand how a POS system works, it’s probably more equitable to compare it to a PC rather than a cash register. It performs all the basic cash registers functions like ringing up items by department, tracking sales, adding taxes, and creating receipts. Simply put, a POS system is made up of hardware and software that works together to process sales and payment transactions at the point of purchase. We put together this educational overview about what is a POS system so you can learn the basics of how they work, get some insider information on the real value, and help you decide what type of POS system is the right choice for your business. However, if you’ve only ever been on the other side of the counter during a point of sale transaction, you probably have many questions about what POS systems are, how they work, and whether your business needs one or not. If you’re starting a business, you’re probably thinking about investing in a point of sale (POS) system.
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