Point of Sale (POS)

Point of Sale (POS)

A point of sale (POS) refers to the place where a customer makes a payment for a product or service they have purchased. It also collects sales tax, where applicable. At times, this may be called the point of purchase. 

The POS could be at a point of sale terminal or at a virtual terminal, like a computer, tablet, phone, or any device that has an internet connection. 

Understanding the Point of Sale

Businesses often set up the POS near the exits of their stores, and for good reason. When placed correctly, they are able to increase the number of impulse purchases customers make right when they are checking out. 

It is very common for retailers to have multiple POSs throughout their stores, and they may be located in almost every department. For instance, a big box store may have a POS in the: 

• Men’s clothing department
• Women’s clothing department
• Toy department
• Electronics department
• Jewelry department

The location for POSs is chosen strategically as a way to increase overall sales volume. 

Online retailers use point of sale to their advantage too. During the checkout process, they may show additional purchase options for customers to add to their shopping carts before they finish. This is called upselling. 

What are POS Systems? 

A point of sale system, or POS system, is a type of hardware that allows businesses to process payments. Many of today’s most popular systems are cloud-based. 

POS systems are one of the most common ways for retailers and other businesses to accept payments from their customers. They are usually equipped with a credit card reader, but may also have the ability to accept other types of payments, including checks and/or electronic checks, mobile wallet payments, and gift cards.