A point of sale system, or a POS system, is a way for customers to easily pay for goods and services, whether shopping in a physical store or e-shopping online. POS systems work by combining hardware and software so that everyone (customers, sellers, businesses, warehouses, etc.) can all stay on the same page, which makes running a business that much simpler.

Traditionally, POS systems use hardware in order to run a card (such as a credit card or a debit card) and receive a payment. By integrating software, everyone is intelligently connected, which is why POS systems have become essential to the day-to-day operations of most businesses. By streamlining the entire sales process, POS systems, whether used in a store or online, allow businesses to process a variety of payments, offer refunds, and keep accurate records of which items are sold and for how much.

Occasionally business owners overlook the importance of their POS system, falsely believing that sales transactions are simple (pay for a good, receive a good). However, experienced business owners know that, especially in today’s world, sales transactions are anything but straightforward. Because of things like rewards programs, vouchers, cash payments, and the variety of cards and e-wallets used to make payments, having a smart POS system is essential.

A trusted POS system also adds a level of security to all transactions that help to keep customers and business owners protected. And, don’t forget, a POS system also adds taxes to payments so that a business can keep its books straight for both state and federal taxes.

What are the different types of POS systems?

Because of the demand for POS systems, there are several different types to choose from, each offering its own unique features for certain industries and businesses. In general, there are four main types of POS systems to consider for your business:

1. Multichannel POS: Ideal for eCommerce businesses operating on a variety of channels, a multichannel POS system can integrate with your eCommerce website, as well as social media platforms and other popular marketplaces. If the bulk of your sales happen online, then a multichannel POS is a great system to consider.
2. Mobile POS: For businesses and business owners that travel from site to site (like markets, fairs, and other pop-up events), a mobile POS system is ideal. This type of system allows you to receive and track sales anywhere, which makes expansion even easier.
3. POS Apps: Similar to a mobile POS system, POS apps allow you to create transactions from anywhere you want. Because sales happen on an app, having a more reliable internet connection at each site can be important.
4. Open-Source POS Software: Because it’s open-source, this type of POS software can adapt to a variety of unique needs. If your business requires a variety of adaptations when it comes to making sales, then choosing a POS system that can easily be edited via open source can be a lifesaver.

When choosing a POS system for your business, keep in mind that the best always create a smooth customer experience so that your customers want to continue to work with you. By eliminating human error, especially in inventory tracking, the best POS systems not only make your business run, but they make them run better — and with more revenue.