How does a POS system work?


On this article you will get to know How does a POS system work. A point of sale system is a place where customers make their purchases in a store or an online can also be described as a checkpoint station for the goods and services rendered in a place.In other words,it means that customers pick a product from a shelf or add them to a cart in an online store,make payment transactions and get a receipt for the good they purchased.

How does a POS system work?
A POS system consists of terminals that replaced the use of cash registers.The terminals are hardwares that are used to operate the softwares that conduct the necessary operations during the sale of items.The transactions normally occur at strategic checkpoints where goods are scanned using a barcode machine and the details are entered into the software,The customer then purchases the items using different options offered at the store and then a button is pressed to trigger the removal of a receipt for the items that have been purchased.

The terminals normally provide the customer with all the necessary information on the products they offer and their prices.The terminal  comprises of a couple of items such as a cash drawer,a receipt printer and a credit card swiper.They are usually operated from a central point which provides information about all the transactions that go on in the store.All the information recorded at all the checkpoints are transferred to the main server to generate the company’s inventory.

How to choose the best POS system for your business.

Different POS systems have different functions depending on the type of business set up.for instance,quickbooks pos system is commonly used in large retail stores as they are able to perform the tasks quickly and efficiently.they are also able to perform various tasks at the same time.

so,how does one know the best pos system to select for their business?

1.Contractual conditions of the business.selection of a pos system could be determined by whether the terms of the contract of a business are long term or short term.a long term project would mean that the scope of work to be done is more than that of a short term project.this means that proper inventory keeping  is key to avoid unnecessary errors so choosing a pos system that works efficiently with bulk products would be the most suitable one.

2.Price of the pos system.Choosing a cheap pos system would most likely save some change on the initial cost but would have a high risk of incurring extra costs in the future.a cheap pos system may not have some critical features for performing the intended purpose thus damages might occur or faulty devices would result to high maintenance costs.

3.The cloud system of the POS in a case where one is not certain of the type of system to choose,a cloud based system enables the client to select a system that is most suitable prior purchasing.the cloud can be downloaded let’s say on a tablet where free trials could be conducted to determine the best system to be employed.

Top best point of sales system in Kenya

Pros and cons of having a pos system for your business.

Just like every other software programme,pos systems have their merits and demerits.However the advantages outweigh the disadvantages.


1.Efficient inventory keeping that is easily accessible by all members.

2.Better customer engagement and services are provided which enhance customer loyalty and satisfaction.

3.Facilititates quick purchasing of items by buyers as well as payments thus saving time.

4.Very few errors are made thus reduction on expenses which relatively increases the revenue.

5.Improves security for both the client and the business owner.


1.Frequent updating of the software systems.New versions of the systems emerge everyday.this means that the old versions have to be done away with and the new versions adapted.updating some of these versions may require one to dig into their pockets which incur expenses to the user. 

2.Security associated risks.POS systems such as credit card swipers require a customer to put their pin for a transaction to be complete.most of these systems are not 100% encrypted to protect their clients personal details thus they become prone to hackers thus posing a danger to the customer.

3.Most of these systems require the internet to operate.This therefore limits the business owners whose businesses are located in remote areas where accessing the internet is quite difficult.

All this talk about the methods of selecting a pos system and its pros and cons is not beneficial to the client if they are not aware of the types of pos systems available in the country.

POS systems are mainly categorised into terminal pos systems,mobile pos systems,tablet pos systems and self service kiosk pos. How does a POS system work

Over the years,various pos users have categorised the most efficient system to use depending on how they sampled them in their businesses.i have summarised the different types in the table below for easier comparison.

Type of pos systemPlaces mainly used.Functionality features.disadvantage.
1.Vend pos systemRetail stores,pharmaceutical stores.-Easy configuration that is easy to adapt.-Cloud-based system that makes it easy to record sales and keep proper inventory.-sales reports are limited to be presented on ms excel only.-very inconvenient in places where internet connection is slow as data can easily be lost.
2.Quick books pos system.Suitable for small businesses such as retail stores,kiosks,clothing stores.-ease purchases both in-store and in online stores.-large platform for inventory keeping.-easy configuration that is easy to understand and interpret. -can be quite costly to purchase initially.-alot of complaints have been filed that their support team does not respond on time.
3.Square pos system.–easy for customers who pay using cards.-refundable fees upon purchasing items.-easily portable and can also   easily switch to perform different tasks.-requires a lot of money to buy.-does not require internet access to operate
4.Light speed system.-restaurants,bars,cafes,club houses-offers faster services.-offers great inventory keeping.-suitable for small businesses.-they have a quite poor support system that does not respond promptly.-not suitable for very large enterprises.


Information of pos systems,september 26,2017 by rachel murdock. editorial staff

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