POS System Ultimate Guide: Everything You Need to Know About Electronic Sales Systems
A POS system can equip your business with the right tools to drive sales and growth.
POS System Ultimate Guide: Everything You Need to Know About Electronic Sales Systems
A POS system can equip your business with the right tools to drive sales and growth.
Last updated 12/02/2025
What is a POS System?
POS means electronic point of sale. A POS system is a modern solution to taking and managing your business’s sales. Unlike a traditional cash register, they can analyze the data they collect from your business’s transactions; utilizing it to make your day-to-day business management easier.
Where a cash register requires a more hands-on approach to things like stock management, a POS system can automate these processes, relieving many of the common stresses associated with running a business.
If you have any questions about how POS systems work, how much they cost, or how they can benefit your business, you’re in the right place. This page is our ultimate guide to POS systems, where you can learn everything you need to know about POS systems for business.
How POS Systems Work
Before we dive into how POS systems work, it’s important that you first understand that they are broken down into two key parts. The first of which is POS hardware, which is the actual POS machine that you can touch. The screen, the cash drawer, and any add-ons you want to include like card readers, barcode scanners, or weighing scales.
Next, there’s POS software. This is the stuff you can’t touch; it’s what’s under the hood of your hardware and what makes the whole thing tick. It’s where you will be able to process transactions, manage your inventory and view insightful reports through one device so, for many POS systems, the software is where the magic happens.
Now, on to how they actually work. POS systems are able to operate as standalone systems or integrate with others to form a larger network of sales systems. It’s this versatility that makes them perfect for multiple business environments.
If, for example, you’re running an online retail business, you can set your online POS system to easily integrate with eCommerce software. Likewise, if you run a busy bar or restaurant, you can tailor the POS software to your venue’s specific parameters. This is why POS for bars and restaurants continues to prove popular year after year.
Benefits of a POS System
In today’s competitive business landscape, it is more important than ever for businesses to have a system in place that can help them operate efficiently, effectively, and profitably. That’s why many businesses across the US use a POS system; they help achieve these goals easier than ever before.
We’ve compiled a list of just some of the benefits a POS system can bring to your business, which you can explore below:
Improved Stock Management
A fully integrated POS system works by linking your trade counter to a common centralized database, meaning you’re able to monitor exactly what is being sold which, in turn, means your stock is always closely monitored.
This can improve the stock management of your business, while also allowing your customers to be informed about how much of a certain product you have in stock, something you can’t do with a cash register.
Increased Business Efficiency
POS systems provide all of your staff with simple and intuitive technologies that they use when interacting with customers. They don’t have to rely on old, often inferior methods to do their job, and the quick and simple nature of digital technologies means tasks can take a fraction of the time they do with a typical cash register.
Having a POS system also eliminates the natural occurrence of human error, increasing workforce efficiency; your staff will be able to do more work quicker and easier than they would if they used a cash register.
Improved Customer Service
Using a POS system means your staff can check an item’s availability immediately, allowing them to deliver better quality customer service. They will no longer have to wait for another member of staff to check an item’s stock in the storeroom and, instead, will be able to inform a customer exactly what is available.
As well as this, POS systems are also typically faster than their alternative cash registers. Customers can now get their items scanned and pay in a few seconds which not only improves customer satisfaction but also allows for better workforce efficiency.
More Sales Opportunities
POS systems allow you several insights into how your business performs day-to-day. This includes insights into the busiest times of day, week, or month, as well as how certain products sell at these times.
While you can record this information manually if you use a cash register, it takes a lot longer and drains resources that could be better used elsewhere. A POS system records it in real-time, in addition to other sales performance indicators, meaning your business can make more informed decisions about how and when to target the marketing of its best products.
Improved Communication
A POS system can streamline communication between the different parts of your business, ensuring efficiency while minimizing human error. This could be your waitstaff communicating with the kitchen, or your shop floor staff communicating with the stockroom.
No need for your employees to be chaotically communicating across the room, or running around to meet demands, they can adapt in real-time to any situation that may arise.
Different Types of POS Systems
Not all POS systems offer the same features and one may be more suited to your business than others. Below are the three main types of POS systems available.
Traditional POS Systems
Perfect for businesses with a larger workforce and for those that have a bigger inventory and process a lot of daily sales.
Tablet POS Systems
Tablets offer more flexibility allowing you to utilize POS technology in your venue or on the move and can still integrate with additional hardware. One of the most popular tablet systems are iPad POS systems, which are provided by a range of companies.
Mobile POS Systems
If your business is mobile then these systems are perfect for you. They may even come integrated with a card reader combining payment and POS technology in one handheld device.
Things to Consider When Choosing a POS System
Although the benefits of a POS system are enough to make you jump head-first into getting one for your business, there are a few things to watch out for when you’re choosing the right one for you. Below is a quick list of things you should watch out for:
Fees
This will be how much you will pay your merchant account provider to use their service. There are several types of fees you will have to pay, all of which need to be considered.
Customer Service
How quickly will technical issues be resolved? Will you be compensated for any downtime? You may have thought you had found your ideal provider, but if their customer service is unhelpful you may need to go elsewhere.
Ease Of Use
You want things to be as easy as possible and don’t want to waste your time trying to figure out an overly complicated card reader. Sometimes you just need an app on your phone and a card reader and you’re ready to start taking payments.
Which is the Best POS System?
As you will see in our list that’s coming up, although all providers offer a similar service, some are more suited to your business than others. A few quick questions you can ask yourself before making your decision are:
“What is my budget?”
Remember that just because it’s a cheap POS system doesn’t necessarily mean it’s worse than others and it could be more suited to your business.
“What industry is my business in?”
As you will see in our upcoming list, some providers are more geared toward certain industries than others.
“What is the size of my business?”
Although one provider may seem great on paper, if you are looking to expand soon then you may wish to look elsewhere and find one that can grow with you.
How Much Does a POS System Cost?
Every provider is different when it comes to the cost of a POS system. Some charge fees in different ways; some may only offer software, so you’ll have to find the hardware elsewhere, while others will include everything in one convenient package. Just as with card machines, one provider may require you to pay a one-off upfront cost to own your system, while another provider may charge you a monthly fee to use it.
Another type of pricing to consider is transaction fees which, while fairly small, can quickly add up. One provider may offer you a $0 upfront cost, a flat transaction fee of 2.5%, and a monthly rental fee of $15. Another may charge you an upfront fee of $200, a flat transaction fee of 1.5%, and only $10 per month.
In this situation it could be tempting to avoid any upfront costs but, if the transaction fees are higher and you process a lot of payments, paying that $200 will soon look like the better option. All of these things need to be considered when you are choosing a POS system for your business.
Get a POS System Today
Now you know more about POS systems you might be wondering how you can get one. You wouldn’t be alone if you were; many small and medium sized businesses like yours (and your competitors) already have a POS system and benefit from it every day. With this in mind, getting your own system for your business would be a big step in modernizing and improving your business.
If a new POS system sounds like it’s up your alley, we’ve got good news. You’re already in the right place to secure yourself one for your business. Answer the questions below to start the process of securing the POS system that best suits you.
FAQs
What are the benefits of using a POS system?
POS systems offer a number of benefits for businesses of all sizes, including:
- Improved efficiency
- Reduced costs
- Improved customer service
- Increased sales
- Better decision-making
How much does a POS system cost?
The cost of a POS system will vary depending on the size and features of the system. However, most POS systems are affordable for businesses of all sizes and are often a great way for small businesses to take themselves and their customer service to the next level.
