Understanding a POS System

POS or Point of Sale refers to the system that records financial transactions in stores and restaurants. It could either be an electric cash register or an integrated computer system that records the data pertaining to the sale of goods or services. A typical POS system consists of a cash drawer, receipt printer, monitor and input device. POS systems can be purchased as an entire unit or as individual components. Prices vary widely depending on the brand and technology. We have put together a guide explaining the different components of point of sale hardware.

* Computer: This is the main component of a POS system and it runs the software. It is advisable to use your POS computer exclusively for the purpose it is meant for - recording sales transactions, generating reports and managing inventory. Specifically, do not use your point of sale system for accessing the Internet.

* Monitors: Various kinds of monitors are available for purchase including touch screen, flat screen, flat panel, CRT, LCD, TFT and FPD. Most touch screen monitors have flat screens and are slim, sleek and lightweight.

* Receipt Printers: Receipt printers are used to print receipts/orders for customers. Many restaurants also use POS printers to send orders to their kitchen and bar staff. There are two kinds of printers available - dot matrix and thermal. The former use pins and an ink ribbon to print on regular paper and are cheaper to buy. Thermal printers use heat and special heat-sensitive paper to generate receipts, but can be more expensive.

* Barcode Scanners: Barcode Scanners are used to scan or read barcodes and send the results back to your POS computer. There are many options that you can choose from based on your average customer volume at checkout.

* Magnetic Stripe Readers: Magnetic Stripe Readers (MSR) are used to read credit/debit & charge cards. Keyboards and touch screens often have built-in readers. You can also buy a standalone magnetic stripe reader if your input device does not have one.

* Keyboards: There are different kinds of POS keyboards available in the market. Choose one that suits your needs.

* Cash drawers: Cash drawers are used to store cash, credit card slips, gift certificates, exchange receipts and other important paperwork.

* Customer displays: Customer displays are meant for showing item and price information to the buyer. They are also known as pole displays.

* Check readers: To prevent fraud, you can install magnetic ink character recognition (MICR) automatic check readers that can verify essential account information.

When choosing a POS system, it is advisable to look for one with software that can run on any type of PC. Buy the basic components of a POS system when you are starting your business. You can always add additional components as and when the need arises. Adding new hardware is generally easy but ensure that equipment you choose is compatible with your software.