If you have an online store, then all of your sales happen on your website, so you don’t need POS hardware to help you accept payments. What types of hardware and software does a POS system typically include?Įvery POS system uses POS software, but not all businesses need POS hardware. The payment goes through, a digital or printed receipt is created, and you ship or hand your customer the items they bought. This is the moment when you officially make a sale.

The point-of-sale transaction is finalized. Depending on the type of payment they choose, your customer’s bank then has to authorize the transaction.Ĥ. To finish their purchase, your customer will have to use their credit card, tap card, debit card, loyalty points, gift card, or cash to make the payment go through. Your POS system calculates the price of the item, including any sales tax, and then updates the inventory count to show that the item is sold.ģ. For online stores, this step happens when a customer finishes adding items to their cart and clicks the checkout button.Ģ. Some POS systems, like Square Point of Sale, also allow you to visually scan items using the camera on your device.

That associate could use a bar code scanner to look up the item’s price. If you have a physical store, they may ask a sales associate to ring them up. A customer decides to buy your product or service. So what does a POS system do? Usually, it works like this:ġ. All you need is a POS app and an internet-enabled device, like a tablet or phone. Today, modern POS systems are entirely digital, which means you can check out a customer wherever you are. It sounds simple enough, but the setup can work in different ways, depending on whether you sell online, have a physical storefront, or both.Ī point-of-sale system used to refer to the cash register at a store.

How does a POS system work at a small business?Ī POS system allows your business to accept payments from customers and keep track of sales. Your point-of-sale system is the hardware and software that enables your business to make those sales. When customers check out online, walk up to your counter, or pick out an item from your stand or booth, they’re at the point of sale. A point of sale, or point of purchase, is where you ring up customers.

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