How POS system works for Retail 

You ring up clients at a point of sale, often known as a point of buying. Clients are at the point of sale when they complete an online buy, approach your checkout counter, or pick an item from your stand or booth.

The hardware and software of your point-of-sale system allow your business to make those sales.


  • A point of sale (POS) is a zone where a client makes a buy and may be responsible for paying sales tariffs.
  • Online or in-person POS transactions are both enabled, and both print and electronic receipts may be created. Retailers are increasingly embracing cloud-based POS systems.
  • Clients may now order online, make reservations, and pay their bills using point of sale (POS) systems, which are evolving into more interactive, especially in the cafe sector.

Retail POS system.

Stock, sales, purchases, special offers, client and personnel control, and sometimes finance control are the modules that make up a retail point-of-sale system.

All that a cashier machine will record are sales and stock. A POS software is more than a cashier machine, which is how they differ from one another. A small portion of the POS system involves cash collecting.

The cashier device in a POS system is commonly referred to as a POS terminal. It serves as a reminder that payment is to be made at this time. A POS terminal’s functions go beyond simply taking payments:

  1. It can be used to save client data for loyalty programs.
  2. allows users to use their points, awards, or coupons.
  3. allows store employees to verify stock levels and past client buys.
  4. outstanding employee sales commission.
  5. Automatically run deals, discounts, and promotions that are handled by the back end.

Compared to a cashier machine, the POS terminal has many more features. Because POS systems combine hardware and software to create an integrated platform, it is possible for this to happen.

How does a point-of-sale system run in a small business?

Your business can collect payments from clients and track sales with a POS system. It may seem clear, but depending on whether you sell online alone, have a physical zone, or both, the setup may work differently.

A money register at a store is mention to as a pos system. Since all current POS systems are digital, you can check out a client from anywhere. You only need a POS software and an internet-enabled device, like a tablet or phone.

Keep reading: Why do you need a POS system for retail?

What POS system does on retail:

  • Client picks to buy your item or service. If you operate an actual store, they can request that a salesperson ring up their purchase. A bar code scanner might be used by the employee to look up the item’s price. You may visually scan things using the camera on your cellphone with some POS systems, such OrderZ Point of Sale. 
  • Your POS system computes the total cost of the item, including any sales taxes. After that, the system modifies the stock count to reflect the item’s sale.
  • Your client makes payment. Your consumer will need to make the payment with a credit card, tap card, debit card, loyalty point, gift card, or cash to complete their purchase. The transaction will then need to be approved by your client’s bank, depending on the payment method they select.
  • At the point of sale, the deal is finished. This is the point at which a sale is formally made. You ship or provide your client with the things they purchased after the money clears and a digital or printed receipt is generated.

What types of hardware and software do POS systems typically include?

While POS software is used by all POS systems, POS hardware is not required for all business.All of your sales will occur online if you operate an online business, therefore you won’t need POS hardware to make payment processing easier. If you run a cafe, you might need a register and a credit card reader. You might simply need a phone or tablet if you run a food truck to accept orders.


Here is a list of typical POS hardware and software types that might assist you in estimating the overall cost of your POS system. Note that your business will pick what you need.

Basic POS hardware features:

You can accept payments thanks to POS hardware. Make sure your new POS system accepts all payment methods, including cash, credit cards (particularly chip cards), and mobile payments, if you’re buying one. Your POS system need to scan bar codes, produce receipts, and keep cash in cash drawers if it makes sense for your company. You can use this hardware list as a starting point when considering your POS setup options.


  • Register: The processing and computation of client transactions are aided by a register.


  • A portable device can be a good reserve for a monitor if it is related. Examples have an iPad or other tablet. 
  • Credit card reader: Whether using a magnetic stripe (magstripe) card, a chip card, or a contactless payment system like Apple Pay, a card reader allows clients to make safe credit card payments while they are in your store.


  • Cash drawer: Even if you accept contactless payments you may need a safe place to keep your cash. Integrated POS software reduces fraud by tracking the precise moment of entry into the cash drawer.


  • Printing a receipt on paper allows clients to see exactly what they bought, when they bought it, and how much they paid.


  • To ring up an item, a barcode scanner scans the product data from that item. This can be a quick approach to check price, stock status and other information.

Basic POS software features:

POS software functions as your control centre. It allows you to see items in your collections and process sales on a basic level. Also, more complete point-of-sale solutions come with useful tools like stock control, client engagement software, sales reporting, and more. After each sale, POS systems also control the money routing to your bank account.


The features listed below are included in some POS systems, like OrderZ. To access certain features on some systems, you might have to use third-party software. Find out more about how OrderZ stacks up with other POS systems.

Transaction processing

One of a POS system’s prior functions is payment processing. Your POS system ends the transaction each time a client buys an thing.


The following payment options, among others, are accepted by POS systems:

  1. Cash
  2. Through your internet store, securely accept payments online
  3. Magstripe credit cards, often known as swipe cards
  4. Chip cards are credit cards that have a chip inside of them.
  5. Contactless payments, such as those made with a mobile wallet or a contactless card that clients tap,
  6. Card-not-present transactions necessitate manual credit card entry because the buy.


Due to the reality of a digital or physical paper trail linking the bought item to the receipt, processing refunds is made simpler. They can improve the professional appearance of your business.

Stock control

Using stock management software, you can monitor every one of your products. When an item is running low, some automated list software can alert you by linking to your sales data.

Customer relationship management (CRM)

You can see what your customers bought and when they bought it due to a CRM tool integrated with POS software. You may customise your contacts, marketing, and client service with this knowledge.

POS statistics

You can fast see how much you’re selling and making with POS data. If your reports are clear, you can sell more and make smarter business decisions.

employee control

Using team managing software, you can see when and how well your employees are working. Also, it can be used by your team to clock in and out, and some applications can provide rights so that workers can access certain tasks.

Words of Wisdom 

POS run according to the kinds of firms they help, but they all share many prior parts and methods. The following are some of them: order history, payment, client marketing, order entry, and stock control. You are ready to pick the ideal POS solution for your business, yet of what or where you sell, now that you have a greater learning of POS systems. Any seller can use the retail POS software created in India by online store builders like OrderZ in their retail methods. With the specially created OrderZ retail POS system for retail trades, you may double your revenue.