Having an effective point of sale system can go a long way in making sure that all of your operations work in unison. A point of sale system is where your customer pays for products or services in your store. Simply put, every time a customer makes a purchase, they complete a point-of-sale transaction.
The latest point-of-sale software goes beyond credit card processing to help retailers and restaurants integrate mobile point-of-sale features, contactless payment options, e-commerce integration capabilities, and more.
What is point of sale software?
POS software is the operating system you use to run physical stores and sell in person. It's what store employees use to find products, add them to a customer's order, and accept payments.
Hardware components of a point of sale system
These are the common hardware components required to get your POS up and running:
Projector / Tablet
It displays the product database and enables other functions, such as employee login and viewing sales reports. Tablets - especially iPads - are notorious for replacing larger screens.
Automate the payment process. Scanning barcodes pulls product information and adds it to the checkout total. Barcode scanners can also integrate with inventory management systems to automatically adjust inventory levels.
credit card reader
Since the EMV payment standard was introduced in 2015, it has become a must-have for secure, EMV-compliant credit card readers. Non-compliant retailers face potentially huge losses due to liability for fraud.
Email and text receipts may be gaining popularity, but paper receipts remain essential for providing customers with quick snapshots of purchases or returns.
How does a POS system work in a small business?
A POS system allows your business to accept payments from customers and track sales. It sounds simple enough, but the setup can work in different ways, depending on whether you sell online, have a physical storefront, or both.
A point of sale system used to point to a store's cash register. Today, modern POS systems are completely digital, which means that you can check in with a customer wherever you are. All you need is a POS app and an internet-connected device, such as a tablet or phone.
So what does a point of sale system do? Usually, it works as follows:
Some point of sale systems, such as the Square Point of Sale, allow you to scan items using the camera on your device. For online stores, this step occurs when the customer has finished adding items to their cart and clicks the checkout button.
The point of sale system calculates the price of the item, including any sales tax. The system then updates the inventory count to show that the item has been sold out.
Finish the purchase
The customer will have to use their credit card, tap card, debit card, loyalty points, gift card or cash to make the payment. Depending on the type of payment they choose, the customer's bank then has to authorize the transaction.