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What is a point-of-sale (POS)?

point - of - sale
noun

A point-of-sale (POS) is the specific location, whether physical or virtual, where customers and merchants come together to complete a transaction. This can be a traditional retail store where you make in-person purchases, an online marketplace where you shop over the internet, or any platform facilitating the exchange of products or services for payment. The POS is where the actual buying and selling process occurs, ensuring a seamless and secure transfer of funds in exchange for goods or services.

How does a point-of-sale (POS) work?

Traditionally, a point-of-sale (POS) refers to the location where customers make payments for products or services. In the past, this involved manual devices like cash registers for managing and securing transactions. However, modern POS systems have evolved significantly, incorporating advanced technologies like scales and scanners to process credit card information efficiently. Additionally, small businesses now have the flexibility to collect credit card details using peripherals designed for tablets and smartphones, often facilitated through payment service providers. This technological evolution has streamlined and diversified the POS experience, offering both merchants and customers greater convenience and security in the transaction process.