POS Meaning: What Does POS Stand For?
POS stands for Point of Sale. The term means 2 things: the place and time where a sale is completed, and the hardware and software a business uses to complete it. In the UK and Europe, the term EPOS (Electronic Point of Sale) is common.
What is a POS System?
A POS system is the combination of POS software and POS hardware that records a sale, takes payment, prints the receipt and updates stock. Modern POS systems run the back office too: inventory, customers, suppliers, staff and reports.
How Does a POS System Work?
A POS system completes a sale in 5 steps:
- Add items — the cashier scans barcodes or searches by name.
- Calculate — the software applies prices, discounts and tax.
- Take payment — cash, card, bank transfer, wallet or credit.
- Print or send the receipt — on a thermal printer or by WhatsApp.
- Update records — stock goes down, and sales and profit reports update.
Parts of a POS System
POS Software
POS software has 6 common modules: billing, inventory, customer management, purchases and suppliers, employee management and reporting. Cloud POS software such as BillTrixo runs in a web browser.
POS Hardware
POS hardware has 5 common parts: a terminal (PC, touch POS, tablet or phone), a receipt printer, a barcode scanner, a cash drawer and, at many shops, a bank card machine for card payments. POS machine prices in Pakistan.
Types of POS Systems
| Type | How it runs | Best for |
|---|---|---|
| Cloud POS | Browser or app; data on remote servers | Small and growing shops that want remote access |
| Desktop (on-premise) POS | Installed on a Windows PC; data on that PC or a local server | Shops that never need remote access |
| Mobile POS (mPOS) | Phone or tablet | Small shops, market stalls, delivery |
| Self-service kiosk | Customer-operated terminal | Large stores and fast food |
Cloud POS vs desktop POS explained.
A Short History: From Cash Register to Cloud POS
James Ritty patented the first mechanical cash register in the United States in 1879. Electronic cash registers followed in the 1970s, PC-based POS software in the 1980s and 1990s, and cloud POS in the 2010s. In Pakistan, cloud POS with offline billing is now common in shops, pharmacies and marts.
Other Meanings of POS
- POS in banking — a card payment at a shop’s card machine. POS transaction meaning.
- POS in jobs — “POS experience” or “POS skills” on a job ad means experience using a point of sale system as a cashier or sales associate: billing, handling cash and card payments, returns and end-of-day cash counts.
- Point of sale vs point of purchase — point of sale is the seller’s view of the checkout; point of purchase (POP) is the buyer’s view, often used for in-store displays.
How to Choose POS Software
Choose POS software with these 5 checks:
- It is built for your type of business (retail, pharmacy, grocery, restaurant).
- It keeps working when the internet goes down.
- Your staff can use it in their language.
- The total yearly cost is clear, with no hidden charges.
- You can see sales and profit from your phone.
BillTrixo answers “yes” to all 5 for retail shops in Pakistan, from Rs. 1,500 per month. See pricing.