POS Terminal

A point-of-sale (POS) terminal is a physical machine or virtual application used to process customer payments at retail stores. A POS terminal can be simple and stationary – a cash register, for example. More advanced systems use cloud-based and open-source POS systems that function through software.

Most modern physical terminals can read both the magnetic stripes and the embedded microchips of credit and debit cards, and can also process contactless capabilities. Systems for eCommerce are virtual and require the merchant to use a payment gateway.

A relatively recent development in point-of-sale systems is the use of mobile POS devices. These software-based solutions can be loaded into a tablet or smartphone and operated over a WiFi connection. They enable merchants to “go cordless” and move the transaction process beyond the typical checkout lane.