There is a lot of technology behind running a retail store, but the most important tool is a point-of-sale (POS) terminal.
In addition to processing payments, it’s also the source of important data that can influence big business decisions. And that’s just a small glimpse of what a POS terminal can do.
What is a point-of-sale terminal?
A POS terminal , also known as a point-of-sale terminal, is a hardware device used in retail establishments to process transactions. It serves as a central interface for accepting payments, managing inventory, new zealand email list and generating sales reports. POS terminals streamline the payment process and provide a seamless customer experience.
POS stands for “point of sale” and literally means the place where the sale takes place, as well as this combination of software and hardware. A POS terminal is also called a POS system or simply POS.
POS terminals consist of several important components, including:
- A smart device, first call resolution and call center software such as a tablet or smartphone, that runs the POS software
- A barcode scanner that can be paired with the terminal
- A payment terminal, also called a card reader, that processes all types of payment methods, including credit cards, gift cards and mobile payment options
- POS software that connects these tools together and performs all the functions listed in the next section and much more
How does a point-of-sale terminal work?
Check out
A person selects a product and goes to the checkout or POS terminal. Cashiers can search for products in the POS system by category, colombia business directory name or SKU number and enter the information manually into the terminal – or scan the barcode.
payment entry
The POS terminal automatically calculates the total amount, including any fees or sales tax. Customers choose their preferred payment method, such as credit card, cash or mobile payment . They can insert their card, swipe it or pay contactless.
payment authorization
The card reader captures the card data and transmits it to the payment service provider . The POS terminal then sends an authorization request to the acquiring bank (the retailer’s bank) via the payment gateway.
The acquiring bank forwards the request to the card network (e.g. Visa, MasterCard), which forwards it to the issuing bank (the customer bank) for verification.
The issuing bank checks the card details, checks the availability of funds and approves or denies the transaction.
completion of the sale
In the background, the software logs the transaction, deducts the product from inventory, updates the stock levels and transfers the data to the system’s reporting and analysis functions.