what is a pos system

A POS system, or point-of-sale system, is a device or set of devices, software, and payment services used by merchants to process transactions and manage sales data. It is the place where a customer makes a payment for products or services at a store or restaurant. A POS system calculates a customers purchase amount, adds sales tax, processes the payment, and logs the time and date of the transaction. After completing the transaction, many POS systems generate a paper and/or digital receipt as well as adjust inventory records. POS software is like a command center that allows merchants to find items in their library and ring up sales. More robust point-of-sale solutions also feature helpful tools such as sales reporting, customer engagement software, inventory management, and more. POS systems can be tailored to meet specific needs, and they are increasingly interactive, particularly in the hospitality industry, allowing customers to place orders and reservations and pay bills electronically.