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What is POS? Important POS information in 10 Minutes

In today’s digital era, all of us do most of our work sitting at home through our smartphones. Even when we buy any goods in the market, we pay it not in cash but through online mode i.e. through cashless methods like our debit or credit card. Therefore, in the present time, almost all the small and big shopkeepers have arranged for their shop as a POS.

In fact, due to non-availability of cash during demonetization, most of the people learned to make cashless payment, due to which people felt very comfortable in it. This is the reason, that today POS machines are being used in almost shops. After all, what is this POS machine? Along with giving information about this, here you are being provided with full form of POS and information about POS.

The full form of POS is Point of Sale. Along with making transactions from this machine, you can also give the slip of payment. At present, you can be seen using this machine at various places like Petrol Pump, General Store, Mall etc.

What is POS?

POS means Point of Sale is a type of computerized machine. It is used in place of cash register. This machine is mainly used to read credit or debit cards, verify the purchased goods as well as give receipt to the customers. In stores or shops where POS machines are used, the work is done with this machine instead of the cashier.

The most important thing about this machine is that this machine handles all the work in minutes along with receiving payment and making slips. Apart from this, there is no possibility of any kind of error in the work done by this machine. Read official FAQs of RBI

What is POS? Important POS information in 10 Minutes
What is POS? Important POS information in 10 Minutes

Main Functions of POS Machine

  • The main functions of Point of Sale (POS) machine are as follows –
  • Reading Credit or Debit Card (Debit / Credit Card Processing)
  • Receiving Payments
  • Making Purchase Receipts
  • Creating Inventory

Apart from these 4 functions, the functions of this machine change according to the type of shop and the nature of the business. If you look carefully, the machine installed at a general store and a petrol pump are different but they have the same structure and function.

Types of POS Machine

This machine tackles the extremely difficult task very simply and this machine comes with different features. However, depending on the system, the description of the different types of this machine is as follows-

  • Mobile POS Machine – This type of point of sale is a system that works through a tablet or smartphone. Mainly, it is useful in the process of payment, keeping inventory and customer information. A portable printer is also included in this type of machine.
  • Tablet POS Machine – This is a simple POS system, which can be accessed through an iPad or tablet. This type of system requires the purchase of software, a tablet or an app. This type of machine is mainly used by ice cream parlors, mobile vendors, small retail stores etc.
  • Terminal POS Machine – The use of this type of machine will be seen in any shop in big malls. These types of systems are hardware and software-based systems. Where the number of customers is very large, this type of machine is used in such places.

Components of POS Machine

A POS system consists of several components, the details of which are as follows –

1. Software

The primary function of software as the most important part of the system is to process transactions, store data, and manage inventory. Modern systems provide a range of functions that meet specific business demands. These functions assist company management in many tasks, including sales analysis, employee management, and customer information.

2. Hardware

The hardware at all point-of-sale terminals consists of a computer, phone, or tablet, which physically operates the software. Depending on the system being used, this hardware is usually purchased, leased or rented from a POS company. Different hardware types work best for different types of stores and products, depending on space, scale, mobility, etc.

3. Credit Card Machine

To complete the sale, the customer uses his card to swipe, dip or scan the actual credit card machine. These machines communicate with the processor to complete the transaction securely. Modern payment machines provide both the customer and the business with significant protection against fraud.

4. Receipt Printer

Hardware systems include a printer for transaction receipt. Some customers prefer to keep a copy of their receipt, although you can always offer to send the receipt both via email and in print.

5. Scanners

However, not all stores are required to use them. However, scanners make the job of a cashier a lot easier when the number of customers is high. The scanner communicates with the POS software to read a barcode to indicate which item is being purchased.

Scanners also help with accurate inventory counts. It assists retailers with large levels of inventory to optimize their receiving and ordering systems.

That’s all about the POS system. Read more blogs on Finance and Banking now.

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