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How Does a Retail POS Terminal Work Step by Step?

June 7, 2024

As a manufacturer that has been focusing on retail POS terminals for 12 years, the Sunany team received a simple but insightful inquiry: How does a retail POS terminal work step by step? To answer this question, we need to understand that retail POS terminals are composed of POS hardware and POS software, which are interdependent and work together to complete a series of business operations such as commodity sales, inventory management, and payment processing. Next, Sunany will explain in detail how retail POS terminals work step by step.

At the beginning of the transaction, the cashier or customer will place the goods on the retail POS terminal for scanning. The retail POS terminal records detailed information about the goods, such as name and price, and displays this information on the screen for the cashier to confirm. As the goods are entered one by one, the retail POS terminal automatically calculates the total price of each item and accumulates the prices of all items into the total. If there are promotions or discounts, the terminal will also automatically apply the corresponding preferential prices.

When the price is settled, the retail POS terminal prompts the customer to pay. The customer can choose a payment method such as cash, credit card, debit card, or mobile payment. The retail POS terminal displays the corresponding options and processes the selected method. For credit or debit card payments, the retail POS terminal connects to the payment gateway or bank network to verify the transaction.

Once the transaction is completed, the retail POS terminal creates a receipt containing the items purchased, the total price, and the payment method. Customers can choose to print or electronically receive the receipt. With each sale, the POS terminal automatically updates the inventory information. Additionally, the retail POS terminal regularly generates sales reports based on the stored data, including sales figures, best-selling items, and transaction numbers. These reports are valuable for business analysis and decision-making.

In short, the retail POS terminal simplifies retail operations from transaction preparation to final payment. Sunany provides customized POS hardware solutions for each step of the retail POS terminal process. For efficient retail POS terminal solutions, please contact the Sunany team.



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