As India progresses towards a cashless economy, most merchants have equipped themselves to serve better. Be it restaurants, retail stores, bars, salons, or any other in-person business, the emphasis on digital payments is evident. Hence, if you are a merchant, you need to join the technological revolution to serve your customers efficiently. A big part of this digitisation is the usage of a point-of-sale system.

More commonly known as POS machine is used to accept card payments. It is a digitised version of a cash register that helps process customer-facing transactions and streamlines other processes associated with the sale. This includes order processing, inventory management, bookkeeping, etc. Let us understand how the comprehensive system works in detail:

Components

Most POS systems, regardless of the structure, are comprised of software and hardware elements. Your needs and operations affect the size and features of the same. The software aspects include an interactive interface with frontend dashboard and backend analytics. Here, the staff processes actions using the touchscreen monitor.

Functions

The swipe machine does more than receiving payments. It is a part of the constellation of things that make a sale possible. Hence, several processes associated with the transactions are carried out through it. Such functions include sales and checkout, payment processing, inventory management, customer relationship management, reporting, employee management, and marketing tools. This enables you to carry out sales with minimal manual intervention.

Mechanism

The POS system goes through a series of simple steps to complete the sales process. Find the representation of the same as follow:

1. A customer buys a product and asks to ring them up. You then use a bar code scanner to display the price of the purchased item.
2. The POS terminal calculates the price adding the sales tax and other charges. The inventory also gets updated with the product count to facilitate stocking.
3. The next step involves scanning the customer's debit or credit card to process the payment. Upon successful authorisation, the amount gets debited from the customer's account into your Merchant Account. If you accept cash, you must manually enter the amount, and the cash register automatically calculates the change.
4. The summary of the transaction gets digitally printed on a receipt after the finalisation. The slip may display a marketing message if you have opted for the same.

Installation

Banks provide the facility of a POS machine if you have a Current Account with them. Some may also let you open a Merchant Account for easy management. Make sure to check the same by visiting their official sites. You get to choose from the high-end options with fast connectivity or low-cost ones depending on your needs. Once the bank checks your merchant status and other requirements, the machine gets installed at your establishment.