POS – for a Better Visibility of Transactions

Point of Sale or POS can be defined as an application system that records and assists the buying and selling process during transactions performed with a particular entity.

Before POS systems were developed, points of sale of that time had different forms of cash registers. Cash registers have brought about a major revolution in the recording of transactions that until then were done manually. However, the opportunities provided by cash registers have become insufficient in the modern world.

There is a need for a more complex system whose goal is not only to speed up and simplify the process but can also affect the orderliness of administrative documentation. The development of the POS system aims to enable interaction with accounting software that can track income, expenses, employee salaries, working hours, and inventories.

All transaction processes, starting from the phase of bookkeeping, preparation of reports, and management of the supply or stocks of goods, can be properly adjusted and monitored through a dedicated application. POS systems allow the merchant to use the app to compile reports without the need to put sales information on paper.

In addition, in a world where information is so valuable, transaction data help assess, plan, and make decisions according to observed sales trends based on predictable business needs.

By using the POS system, all transaction reports are submitted quickly, which simplifies the process of control over all transactions that take place.

Thanks to that, recording expenses and entering goods also becomes easier, especially when it comes to calculating deductions or advances based on stocks, and it is possible to record the payment of customer receivables.

There are a large number of stores or businesses that use tablets or smartphones as a tool for the product ordering process, and this system can be integrated with all the conveniences in every function and menu that is displayed.

This simplifies selecting, paying, or adding orders, creating additional flexibility.

POS system components that are activated each time the transaction process consists of a hardware and a software part. The hardware includes a terminal, an invoice and receipt printer, often cash space, a payment terminal, and a code scanner. The software part consists of special programs for inventory management, reporting, purchasing, transaction security standards, and data processing.

The device can be accompanied by smartphones or tablets that support the monitor function in the POS system. POS systems have a code scanner, as well as a card reader that enables secure payment.

The registry component is used to assist in the process of calculating transactions performed by customers, who can pay in various ways.

Regardless of whether it is a large or small company that uses the POS system, there are advantages for those for whom this allows a simpler insight at any time into the daily market, the state of stocks in facilities, and other details, while those with small employees everyday tasks, because it relieves them of making records that can be done automatically.

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Visa is the general partner of the Fintechlopedia project, an electronic glossary containing all relevant elements of digital transactions and related phenomena, situations, processes, and innovations.