What Is a Point-of-Sale System?
The essential component of a merchant's payment infrastructure is a point-of-sale (POS) system. POS systems are a collection of hardware and software that enable businesses to process payments, keep track of inventory, and do other tasks like booking appointments or handling payroll. Customers can choose from a variety of payment methods using a POS system, including credit cards like Visa or American Express, a digital wallet, a debit card, an online payment, or even cryptocurrency. A merchant's POS system ultimately completes sales transactions by integrating the addition of sales tax, taking into account promotions, and generating receipts.
A POS system is not the same as a payment processor. A payment gateway and payment processing are, however, offered as a combined service by some POS system