Q:

How do POS terminals work?

A:

Quick Answer

POS, or Point of sale, terminals capture real-time data on purchase transactions and generate estimates of product sales and market share. POS systems can track and record customer purchases and orders, process debit and credit cards, manage inventory and connect with other POS terminals via a network.

Know More

Full Answer

Shoppers usually take their products to a register, where the cashier uses a bar scanner to read the description and price on the tag of every item. The POS system automatically finds the total, deducts any discounts and applies the sales tax. It can also send customer information to a marketing database and transactions records to an inventory system. When ever inventory is running low, the POS system issues an alert. When the shopper pays by swiping their credit or debit card in the card reader, the POS terminal checks the card's validity, connects to the bank that issued the card and once the payment has been credited to the account, prints out a receipt to the shopper.

At the core of every POS terminal is a personal computer that has I/O devices and application programs that are specific to a particular environment or industry. POS terminals join several retail processes in order to reduce the time cashiers spend processing financial transactions.

Learn more about Computers & Hardware

Related Questions

  • Q:

    How does ISDN work?

    A:

    According to Michiel Van Kets, Integrated Services Digital Network is designed to allow digital voice and data transmission over copper telephone wires. It provides improved voice quality and both circuit-switched and packet-switched technologies for voice and data. Although it is still available in the United States and Europe through telephone companies, cable modems and even wireless broadband provide better throughput speeds and are more popular as of 2014.

    Full Answer >
    Filed Under:
  • Q:

    What are the disadvantages of a POS system?

    A:

    There are several disadvantages to the POS system, including the increased difficulty teaching the system and cost. POS systems are generally more popular today than before, but many stores still rely on a cash register due to cost and efficiency.

    Full Answer >
    Filed Under:
  • Q:

    How does DivX work?

    A:

    DivX is a commercial algorithm that encodes and decodes videos in order to compress their file size. While the source code of DivX is not available to the public, DivX operates similarly to other codecs available to video users. Codecs work by compressing each frame of a video. The process typically works by segmenting each frame into 8-by-8-pixel blocks and applying the codec's compression algorithm to each block.

    Full Answer >
    Filed Under:
  • Q:

    How does nanotechnology work?

    A:

    Nanotechnology and nanoscience are the study of extremely small things. The study is based on objects within the nanoscale size as well as the 'bottom up' principle.

    Full Answer >
    Filed Under:

Explore