How does a POS Terminal work?
Author : Jack Spa | Published On : 10 Oct 2025
How does a POS Terminal work?
A POS terminal functions through a series of coordinated steps:
- Transaction Initiation: The customer selects the goods or services they wish to purchase.
- Data Input: The terminal records transaction details via a manual entry or other input methods.
- Payment Processing: Customers pay using methods such as cash, credit/debit cards, or mobile wallets. The terminal connects to the payment gateway to authorize payments.
- Receipt Generation: A receipt is issued – either printed or sent electronically.
- Data Storage: Transaction information is stored securely, enabling reporting, inventory updates, and customer insights.
These steps occur within seconds, offering both speed and reliability to businesses and their customers.
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