What Is a Point-of-Sale (POS) System and How Does It Work?
Customers are rung up at a point of sale, also known as a point of purchase. Customers are at the point of sale when they check out online, come up to your counter, or select an item from your stand or booth.
The technology and software that enable your firm to make those sales is your point-of-sale system.
What is the function of a POS system in a small business?
1. Your firm may collect payments from customers and keep track of sales with a POS system. It appears simple enough, but depending on whether you sell online, have a physical storefront, or both, the arrangement can operate in a variety of ways.
2. The cash register in a store is referred to as a point-of-sale system. Modern POS systems, such as Oscar’s POS system, are totally digital, allowing you to check out a customer from anywhere. All you need is a POS app and a device that can connect to the internet, such as a tablet or phone items using the camera on your device. For online stores, this step happens when a customer finishes adding items to their cart and clicks the checkout button.
2. Your POS system calculates the item’s price, including any applicable sales tax, and then updates the inventory count to reflect the transaction.
3. Your customer is the one who pays. To complete their transaction, your customer will need to pay using their credit card, tap card, debit card, loyalty points, gift card, or cash. Your customer’s bank must then authorize the transaction, depending on the type of payment they pick.
4. The transaction at the point of sale is complete. This is the point at which you make a formal sale. The payment is processed, a digital or printed receipt is generated, and you ship or hand the things to your customer.