Point of Sale (POS) - What is a point of sale?
A point of sale is a location or system where a sales transaction occurs. A POS system is the device and corresponding software that allows you to accept payments
See how easy it can be to use an integrated POS system and accounting software with the SumUp card reader and Debitoor connection. Get started today.
Typically, the term ‘point of sale’ (often shortened to ‘POS’) applies to the combined functions of a hardware device or devices and related software that provides the ability for a merchant such as a small business or sole trader to process payments for products or services.
POS systems have changed significantly within a very short period of time. Evolving from the bulky, complex cash register system to today’s highly-portable, fits-in-your-pocket card readers, accepting payments has never been simpler.
What can be considered a POS?
The term covers a broad range of various methods for processing transactions. In its simplest form, it can refer to just the exchange of cash after a manual calculation of the total amount owed, and the issuing of a receipt.
However, in today’s world, this is rarely the case when it is often faster and easier to use an electronic device to help in the process. A point of sale can be a computer, a tablet, or a smartphone. But a couple of additional devices can make a big impact on the effectiveness and professionalism of a POS system.
This includes: a card reader to enable a seller to accept debit and credit card payments in person and a portable printer for issuing receipts on the spot. A secure place to store cash is also useful.
A POS system can also be virtual. There are many online payment solutions that give you the option to create an account in order to allow your customers to pay instantly online.
How point of sale systems work
A POS system always consists of a certain set of elements that enable a seller to accept payments. While the essentials can be managed with a pen and paper, it’s often not practical or efficient to do so.
A point of sale system should allow you to easily:
- Calculate the total owed for the sale
- Accept payment by cash, card, or online
- Issue a receipt
- Record the details of the sale
Many POS systems have additional features such as the ability to manage your inventory when selling products, save customer details, as well as connect to accounting & invoicing software to help track and manage incoming payments (as well as expenses and invoicing for your business.
Why a POS is useful
A POS helps to optimise the process of accepting and managing payments for sales. The experience a customer has with making payment for a sale can substantially impact on whether they become repeat customers or the likelihood of positive word-of-mouth.
Integrations with additional services expand the functions of the point of sale system to provide a more comprehensive system for managing your business finances.
Point of sale and Debitoor
Debitoor is now integrated with SumUp, a market leader in card readers and total POS systems. This means that you can connect your invoicing and accounting software directly with a highly portable and intuitive system for accepting card payments both face-to-face and online.