What Is a Point of Sale System?
A point of sale system, commonly called a POS system, is the combination of software and hardware a business uses to sell products or services, accept payments, track inventory, and manage day-to-day store operations.
Modern POS systems do much more than replace a cash register. They can connect sales, inventory, employees, customers, payments, ecommerce, and reporting in one central platform.
Modern POS checkout in a retail store
POS System Meaning
POS stands for point of sale. It is the place and process where a customer completes a purchase. A POS system records the transaction, calculates the amount due, accepts the payment, updates inventory, and stores information that the business can use for reporting and management.
How Does a POS System Work?
A POS system connects the different steps of a sale into one organized process.
Select the Items
The cashier scans a barcode, searches the product catalog, or selects an item from the screen.
Calculate the Sale
The system applies pricing, discounts, promotions, taxes, fees, and customer benefits.
Accept Payment
The customer pays by card, cash, mobile wallet, store credit, or another enabled payment method.
Update the Records
The POS records the sale, adjusts inventory, creates a receipt, and updates reports in real time.
POS Software and POS Hardware
Every POS solution includes software. Depending on the business and the type of system, it may also use payment terminals, scanners, printers, cash drawers, tablets, computers, and other hardware.
Some POS providers require customers to use proprietary equipment. MTPOS provides compatible hardware through the MTPOS Hardware Store, but it does not limit businesses to one computer or device manufacturer.
POS Software
The application that controls checkout, products, pricing, inventory, employees, customers, payments, and reporting.
- Sales and checkout
- Product catalog
- Inventory management
- Employee access
- Customer management
- Reports and analytics
POS Hardware
The physical equipment used by employees and customers during checkout and store operations.
- Computer or tablet
- Payment terminal
- Barcode scanner
- Receipt printer
- Cash drawer
- Customer-facing display
Common POS Hardware
A small mobile business may only need a phone and payment reader. A busy retail store may require several registers, barcode scanners, payment terminals, receipt printers, customer displays, cash drawers, and self-checkout stations.
Computer, Tablet or Mobile Device
The POS application can run on a fixed checkout computer, a touchscreen terminal, a tablet, or a mobile device. Cloud POS systems may allow employees to use different device types based on their role.
Card Payment Terminal
A payment terminal accepts credit cards, debit cards, contactless cards, and mobile wallets such as Apple Pay and Google Pay. It may be installed at a counter or used as a wireless mobile device.
Barcode Scanner
A scanner quickly identifies products during checkout, inventory receiving, transfers, and stock counts. Some POS applications can also scan barcodes with a phone or tablet camera.
Receipt Printer
A receipt printer provides a paper record of the transaction. Many modern systems can also send receipts by email or text message, reducing the need for printed receipts.
Cash Drawer
A cash drawer securely stores cash and change. The POS system can open the drawer during approved transactions and record the employee responsible for the register.
Customer Display or Self-Checkout
A customer-facing display lets shoppers review items and totals. Some businesses also use self-checkout stations that allow customers to scan items and complete payment independently.
What Does POS Software Include?
The exact features vary, but a complete POS platform normally supports several important business functions.
Sales and Checkout
Employees can select products, scan barcodes, apply approved discounts, calculate taxes, accept payment, and issue a receipt.
Product Catalog
The catalog stores product names, categories, descriptions, pricing, taxes, barcodes, images, promotions, and other selling information.
Inventory Management
Inventory functions may include receiving, transfers, purchase orders, stock counts, adjustments, reservations, serialized inventory, and product availability.
Employee Management
Roles and permissions control what each employee can view or change. The system can also record sales activity, commissions, register use, and approvals.
Customer Management
A POS system can maintain customer profiles, purchase history, loyalty points, store credit, contact information, and service preferences.
Cash Management
In addition to opening and closing registers, advanced systems may track safes, bank deposits, cash transfers, cash pickups, and change orders.
Reports and Analytics
Reports show sales, inventory, payments, taxes, employee activity, store performance, profit indicators, and other operational information.
Ecommerce Integration
An integrated system can synchronize products, customers, orders, and inventory between physical stores and online sales channels.
Multi-Store Management
Businesses with multiple locations can manage shared products and policies while allowing different stores, regions, or markets to use their own pricing and promotions.
See how these features work together
Explore MTPOS using your own sample products, employees, inventory, and store configuration.
Types of POS Systems
POS systems are often described by where the software runs and the devices used to access it.
A modern platform may support more than one type, allowing a business to use fixed registers, tablets, mobile devices, and self-service terminals together.
Traditional or On-Premises POS
Traditional software is installed on computers located inside the store. The business may be responsible for servers, backups, software updates, and local maintenance.
Cloud POS System
Cloud POS software stores and manages information through hosted services. Authorized users can access the system from supported locations and devices without maintaining a server in every store.
Mobile POS System
A mobile POS, or mPOS, lets employees sell and assist customers using a phone, tablet, or portable terminal. It can be used inside the store, at events, during deliveries, or on the sales floor.
Self-Service POS
Self-service systems allow customers to select or scan products and complete checkout with limited employee involvement. Examples include kiosks and self-checkout stations.
Benefits of a Modern POS System
Faster and More Accurate Checkout
Product lookup, barcode scanning, automatic pricing, and integrated payments reduce manual entry and help employees complete transactions efficiently.
Real-Time Inventory Visibility
Each sale can immediately update available inventory, helping employees locate products and helping managers identify items that need to be reordered.
Better Business Decisions
Managers can review sales, inventory, payments, employee activity, and store performance without waiting for information to be manually combined.
Consistent Store Operations
Shared workflows, permissions, pricing rules, and approval processes make it easier to operate one store or many locations consistently.
Improved Customer Service
Employees can access product information, inventory availability, customer history, loyalty benefits, and related products while assisting the customer.
Connected Online and In-Store Sales
An integrated platform can provide a unified view of customers, products, orders, and inventory across physical and ecommerce channels.
How to Choose a POS System
The best POS system depends on what the business sells, how employees work, the number of locations, and the level of inventory and operational control required.
Questions to consider
- Does it support your type of products or services?
- Can it manage one store and expand to additional locations?
- Does it support your preferred payment processor and hardware?
- Can employees use tablets or mobile devices?
- Does it provide the inventory controls you need?
- Can it integrate with ecommerce and other business systems?
- Are roles, permissions, approvals, and audit records available?
- Can you access reports when you are away from the store?
Use a screenshot or realistic image showing reporting on a laptop or tablet.
A Cloud POS System for Growing Businesses
MTPOS combines point of sale, inventory, payments, customer management, employee controls, ecommerce, and reporting in one platform.
Businesses can use MTPOS on fixed computers, tablets, and supported mobile devices. It can support a single store, multiple locations, franchise operations, mobile sales, and enterprise retail environments.
Because MTPOS is cloud-based, authorized users can access operational information and reports without being limited to a computer inside the store. Updates are delivered as part of the service, reducing the need to maintain separate software installations at every location.
MTPOS can support:
- ✓ Retail checkout and mobile selling
- ✓ Serialized and non-serialized inventory
- ✓ Single-store and multi-store operations
- ✓ Customer loyalty and store credit
- ✓ Employee and store commissions
- ✓ Ecommerce and online order integration
- ✓ Real-time reporting from supported devices
POS System FAQ
What does POS stand for?
What is the difference between a POS system and a cash register?
Does a POS system need an internet connection?
Can I use a POS system on a tablet or phone?
Is a POS system only for retail stores?
Can a POS system manage multiple stores?
Can I purchase my own POS hardware?
Ready to See a POS System in Action?
Create a free MTPOS trial and explore products, checkout, inventory, customers, employees, and reports.
