Point Of Sale Definition
A point of sale (POS) is a physical location where transactions are completed. The term is most commonly associated with retail settings, wherein a customer completes a purchase transaction with a merchant. However, the term can also refer to other types of transactions, such as those completed at restaurants, rental car counters, grocery stores, and hotels.
In a retail setting, POS systems are used to process sales transactions. These systems typically include hardware and software components that work together to record and track customer purchases. The hardware component typically includes a cash register or electronic payment terminal, while the software component usually comprises POS software that tracks inventory levels and sales data.
POS systems can offer several benefits for businesses, including the ability to streamline sales transactions, better track inventory levels, and generate reports that can help with decision-making. For customers, POS systems can provide a more convenient way to make purchases and can offer features such as loyalty programs and gift card integration.
