What is a Point of Sale System? Definition and Meaning - Ikajo Glossary


Point of Sale System (POS)

What is a Point of Sale System?

Point of Sale System is a system which can be applied to any type of business regardless of the capacity and kind. POS is a combination of hardware and software which takes care of the businesses. This structure assists in saving time, removing duplication of the information as well as increasing productivity.

Generally, it brings detailed reports to better CRM services. If the client runs a business in e-commerce, it could be served by such a system that receives the payments online. The system is clear and runs on any computer.

POS on the market nowadays are ready and set up to receive almost any kind of payment. Nevertheless, the customer must be careful in choosing the most efficient one for a certain type of business. The users also have to pay some money for software updates, maintenance, along with technical support. Its duties include monitoring the sales documentation and informing the client if the stock is running out.

There are two main POS types:

  • On-premise POS. To use it the business owners buy a license (or some) and installs the software. Then the user needs to maintain the software and keep it up-to-date. This type might involve some IT-specialist’s help. The hardware for on-premise POS is usually costly.
  • Cloud POS. The business owner can access this type via the Internet. All the updates are usually automatic. No specialists needed to maintain the POS work (only 1-2 employees). This POS type commonly involves less spending.
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