What is a point of sale (POS)?

By definition, the point of sale (POS), or point of purchase, is the time and place in your retail store where transactions are completed. This is also known as the point of purchase. Think of the point of sale as your store’s checkout counter—the place where you check out customers, take payment, and complete transactions. 

What is a POS system?

A point-of-sale (POS) system is the hardware and software that helps your business accept payments from customers and make sales in person. It also routes funds to your bank account after each sale.

Modern POS systems help merchants manage inventory, track sales performance, manage staff, collect customer contact information, and much more. 

The term "POS system" used to refer to your cash register. But today, most POS systems are software-based and can be used on any tablet or smartphone. This lets you serve customers and take payments wherever you are, without needing a cash register.