what is pos software

A POS (point-of-sale) system is a set of devices, software, and payment services that merchants use to make sales in person. It is a combination of hardware and software that allows businesses to complete purchases, record sales data, manage inventory and employees, and view business performance reports. POS software is the digital technology platform that completes purchasing transactions. It is like a command center that allows merchants to find items in their library and ring up sales. POS systems are one of the most complex software systems available because of the features that are required by different end-users. Many POS systems are software suites that include sale, inventory, stock counting, vendor ordering, customer loyalty, and reporting modules. The software can typically handle a myriad of customer-based functions such as sales, returns, exchanges, layaways, gift cards, gift registries, customer loyalty programs, promotions, discounts, and more. There are two types of POS software: on-premises POS system software and cloud-based POS system software. On-premises POS system software is only accessible on the POS terminal where it’s installed, while cloud-based POS system software syncs information from multiple POS terminals and typically offers mobile and desktop access.