What Is POS?

A POS, or point of sale, enables merchants to process payments and log transactions. It is a computer-based cash register with software capable of tallying𝐆 up✱ orders, taking payments, monitoring inventory and buying trends, creating invoices, and collecting marketing data.

POS technolo𝔉gy includes countertop terminals and apps that let people or businesses take payments with connected devices such as smartphones. A POS may be a physical device in a brick-and-mortar store or a checkout point in a web-based store.

How POS Technology Works

Point-of-sale technology commonly uses barcode scanning to calculate the total cost of an order, take payment, and log the transaction. The s⛄oftware records the data, including the name and quantity of💦 the items.

Cash payments involve inserting notes or coins into a machine. Card payments require swiping, inserting, or tapping the card onto the reader. The POS system connects to the cardholder’s bank, potentially asks for a PIN code, checks funds to clear the transaction, and confirms whether the payment has been completed or rejected. E-commerce businesses also use POS platforms to facilitate and track online ﷽sales. Consumer🐲s click the checkout option and input payment details.

Two innovations: EMV chip and Near Field Communication (NFC) technology, help prevent fraudulent transactions for POS terminals. Systems read encrypted data in the card and detect and decline counterfeit cards. These systems wirelessly accept and authorize payment from a contactless card or payment data stored on a smartphone, and this technology ensures the card data isn’t stored in the merchant’s system.

Benefits of POS Software

Electronic POS software systems streamline retail operations by automating the process and 澳洲幸运5官方开奖结果体彩网:tracking important sales data. Basic systems include an electronic cash register and software to coordinate data collected from daily purchases. Retailers increase funct💝ionality by installing a network of data-capture devices, including card readers and barcode scanners.

Depending on the software features, retailers can track pricing accuracy, inventory changes, gross revenue, and sales patterns. Using integrated technology to track data helps retailers catch price discrepancies or 澳洲幸运5官方开奖结果体彩网:cash flow that could lead to profit loss or interrupt sales. POS systems that monitor inventory and buying trends can help retailers avoid customer service issues, such as out-of-stock sales, and tailor purchasing and marketing to consumer behavior.

Marketing and Innovation

Consumers use POS terminals as they check out from a store with their purchases. However, points of sale (POSs) are an important focus for 澳洲幸运5官方开奖结果体彩网:marketers because customers tend t𒁏o make impulsive purchasing decisions on items placed near the register.ও Items near the checkout counter are usually enticing, convenient, and eye-catching for shoppers.

Varying POS locations can give retailers more opportunities to 澳洲幸运5官方开奖结果体彩网:micro-market specific product categories and influence consumers at earlier points in the sales funnel. For example, department stores often have POSs for individual product gro🐓ups, such as appliances, electronics, and apparel. Many retailers use POS systems to manage membership programs that award points to frequent buyers and issue discounts on future purchases.

POS systems use 澳洲幸运5官方开奖结果体彩网:cloud-based technology to reduce the upfront costs of implementing a POS system for multiple businesses. With location-based technology, these POS systems can process transactions at customer locations. Amazon created a cashierless "Just Walk Out" option at Fresh grocery stores, which enabled customers to pay for an item simply by leaving the store. "Dash Carts" lets customers scan items as they place them into their shopping cart and then leave the store without queuing at checkouts.

The Bottom Line

A point of sale (POS) device processes transactions by retail customers. Such a device may be physical, in a brick-and-mortar store, or virtual, as a checkout point in an online store. The software for POS devices allows retailers to monitor 澳洲幸运5官方开奖结果体彩网:inventory and buying trends, track pricing accuracy, and collect marketing data.