Point of SaleA point of sale (POS), a critical piece of a point of purchase, is the place where a customer executes the payment for goods or services, and where sales taxes may become payable. It can be in a physical store, where POS terminals and systems are used to process card payments or a virtual sales point such as a computer or mobile electronic device.POS systems are increasingly interactive, particularly in the hospitality industry, and allow customers to place orders and reservations, and pay bills electronically.Cloud-based POS systems are becoming increasingly popular among merchants.
Modern POS systems are commonly programmable or allow enhancement with third-party software programs. These systems can be tailored to meet specific needs. Cloud-based POS systems are increasingly in use, particularly for large online merchants, to track and process numerous purchases. Cloud-based systems can greatly reduce the upfront costs of implementing a POS system for many businesses. Customers can also interact directly with POS systems, particularly in the hospitality industry. Often referred to as location-based technology, these systems can process transactions at customer locations.