The term point of sale or POS can mean many things to different people. Point of sale is typically associated with the station within the store at which a customer completes a transaction by paying for an item or service within a retail or restaurant business. A computer based point of sale system is the logical next step for a business that needs more functionality then an electronic cash register (ECR) can provide.

A traditional point of sale (POS) system consists of a retail hardened computer specifically designed to meet the needs of demanding retail environments, point of sale software, and related peripherals such as a barcode scanner, receipt printer, cash drawer, and pole display. A PC based point of sale system can handle daily functions such as recording sales transactions,  processing payments, tracking inventory, and customer marketing. While some merchants consider a credit card processing terminal to be a point of sale system it is in actuality a point of sale peripheral dependent on the POS system in order to function properly.

When selecting a point of sale system it is important to begin with the choosing the right software. Identifying the key functionality and features the software application must have to ensure your business runs efficiently is a great first step. Develop a list of required features so that you can narrow your choices down to a short list of POS software providers, and request a demo of the point of sale software. While point of sale hardware is an important part of a comprehensive POS system, most POS software is designed to work seamlessly with any POS hardware. To avoid any potential compatibility issues, purchase your POS software, hardware, and installation from a single provider.  Here are some other basic points to consider when selecting a point of sale system:

• Is the software scalable for future expansion?
• How customizable is the software to meet my unique business needs?
• What type of business reporting functionality does the POS system offer?
• Does it interface with my accounting software?
• What type of training comes with the POS system?
• What type of ongoing technical support does my POS vendor provide?
• Does the point of sale software integrate with my credit card processing provider?
• What type of customer loyalty/marketing programs does the POS system offer?