Wondering what is POS system? How does it work? What are the functionalities of POS systems? What are the types and components of a POS system? Which POS system is right for you? Find out all in this short blog post.
Let’s dig into the details!
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What is POS System?
A point of sale (POS) system is a technology suite that combines different business features in a single place that your business can use to run and grow. This system combines tools that aid the processing of the payment and manage retail functions of businesses.
The term point of sale (POS) refers to the moment when a payment is completed between a consumer and business. It can be used in-person or online and consists of both hardware and software components that include a cash register, credit card reader, barcode scanner, and other payment processing software.
How Does POS System Work?
A POS system performs multiple tasks, including:
- accepting quick payments
- recording and storing data
Here are the steps to know how POS system actually works:
- A customer decides to buy your product or service
- The system calculates the prices
- Your customers pay
- Point of Sale transaction is done
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What are the Functionalities of POS Systems?
Here are the common functionalities of the POS system:
- Payment Processing
- Transaction Management
- Sales Reporting
- Inventory Management
- Customer relationship Management
- Receipts and Tipping Support
- Employee Management
Types of POS Systems?
These are the common types of POS systems that you can use:
- Multichannel POS: This system integrates with your website, third party and partner online marketplace to get relevant offers.
- Desktop, Mobile, Tablet POS: POS system can be used across any device.
- POS Applications: POS systems have different apps to manage your sales and transactions
- Open Source POS Software: This POS system allows you to directly edit the source code of the creator to create a custom POS solution for your business.
Components of POS System
There are various components of the POS system that can be used interchangeably as per your business needs. These are:
- Cash drawer
- Barcode scammer
- POS terminal
- Receipt printer
- Label printer
Which POS System is Right for You?
It can be difficult to determine that which POS system works best for your business. You need to ask the following questions:
- Do you accept cash payments? If your business accepts cash payments, then you need to use a POS system. As your business is going to use cash registers and electronic devices which can be managed by POS and ePOS system.
- Do you need to accept payments on your premises? If yes, you can take benefit from POS as well as ePOS. You can select the one as per your business needs. You can also incorporate fixed, portable or both types of POS terminals to take payments.
- Do you have internet access? You should use the POS terminals in your store if you have internet access. You can connect terminals via ethereal cables that will enable your staff to receive payments from any location in your store. In addition, a portable terminal can be used which you can operate on your mobile.
Quick Sum Up
Now that you have a better understanding of what is POS system, how does it work, and its functionalities, types, you can select the one that suits your business. It is useful for small businesses to streamline purchases, connect sales data, manage product inventory and provide flexibility to their customers. So, you need to ask the POS software provider for a demo, test multiple systems and constant other businesses for help.
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Disclaimer: This blog is written for your general information on the POS system.