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How Does Retail POS System Work


In case havent had a chance to use a Point of Sale (POS) system, realizing you need one can be disturbing.


How does retain POS system work? Is it the right business management system of my business? How does it compare with a cash register in terms of cost and performance? Does it have enough security features to protect my money and client details?


Perhaps you have a cash register, and you are contemplating upgrading to a POS system. In this case, the thought of transferring data and learning how to use the new system could be overwhelming.


Regardless of your questions or concerns, one thing remains understanding how a retail POS system work will provide answers to all your worries and question. Whats great is that we are willing to break it down for you. Well start by describing the components of a typical POS system.

NOBLY Technology-Pos Cash Register-how Does Retail Pos System Work


Components of Retail POS system


The two critical parts of a modern POS system are hardware and software. Hardware is what is delivered to you when you buy a POS online or the item you carry home when you buy it from a local store. Software, on the other hand, does the job of registering, processing and storing the details of transactions your business makes.


Here is a more detailed discussion on these key components:




POS system hardware differs widely depending on the nature and needs of businesses. Lets expound on the parts that make up a point of sale hardware:


A User Interface


This is where you enter the details of each transaction you make. It could be anything from a cash register with buttons to touch screen PC monitor to a Smartphone (or other mobile devices) with POS software.


A Cash Drawer


A cash drawer offers you storage for your daily cash float and daily taking together with receipts, checks, vouchers as well as slips that relate to accounting.


Barcode Scanner


This component is useful in a retail environment that deals with different varieties of products. In most cases, the scanner is linked to the Point of Sales systems stock level counts to make possible auto-updates of product counts according to the supplies sold by the business.


A Card Machine


A card machine processes the payments customers or clients make via their debit or credit cards. It can also process payments made via mobile wallets (such as PayPal) through Near Field Communication (NFC).


Earlier models require you to install software (some come with their programs) and a landline cable or SIM Card. Modern card machines, also known as card readers, use network data or Wi-Fi from a connected remote device.


Receipt Printer


As the name suggests, this POS component enables you to print transaction receipts and end-of-day summary reports for cashing up.




Advanced point of sale systems features a frontend interface for the POS and a BackOffice (dashboard) where behind-the-scene analytics, as well as management operations, happen.


The staffs at the point of sale use the frontend interface to process transactions either on a tablet monitor or a touchscreen display. The management of the business accesses the dashboard on an application window or browser that could be on the same device, a separate PC or mobile device.


The frontend and the BackOffice interface of a POS system are connected and synced. The data feed into the system is stored either onsite or in the cloud. Lets look at these storage methods in detail.


On-Site Storage


In this case, the POS software is installed on your personal server which could be on a computer system based locally in your premises. Since you are storing the data locally, you will need to purchase additional software licenses.


On-site storage means you will have to update and maintain the software manually. You will not need internet access because all the software is based on your own closed computer software.


Cloud-Based Storage


Here, you host your system online. That is to say; all data is stored on your point of sale systems internet servers. Thus you can access the stored data from any location on any computer browser. A cloud-based system may also be called software-as-a-service as your POS service provider automatically updates and maintains your system. The catch is that youll need always to use the latest versions of POS applications.


On-site storage has been the mainstay of computerized Point of Sale systems. But things are quickly changing because of the conveniences associated with cloud-based or hybrid (uses both on-site and cloud). The hardware needed for on-site storage is often expensive in terms of setup cost. Most likely, you will require the assistance of a professional to manage and maintain the system.


Cloud-based data storage is perhaps the best because it is cheap and offer several options to incorporate with other software programs. Hybrid systems are somewhere in between in terms of cost of set up and maintenance. The benefit is that it offers more when it comes to POS data storage and management.


Point of Sale programs can differ considerably based on the layout and the features they possess. The cause of this difference is the variation in the needs of each business that need unique applications.


Operating a POS system


You know the components of a POS system. Now, you do you set them up and use them to manage your retail business. Discussing each step in detail can be an overwhelming post. Here is a summary of how you should operate your POS system:


Step 1: Setup or Installation



To use a POS system, you must first set it up correctly. As we discussed earlier, this step will require hardware, software and data system. You will need to set up an account first. You or your POS provider will then start adding inventory, customers, employees and any other info necessary for a customized retail business.


NOBLY POS systems offer you hardware that will suit your business. For instance, if yours is a cloud-based system like the one we provide, your point of sale interface will be something like NOBLY 10.1-inch Touchscreen POS cash register that will run the software that processes your transactions. It has a cash drawer and lets you attach peripherals such as a receipt printer, a barcode scanner, and a card reader.


Step 2: Sales and Returns


Your point of sale should aid you in performing the standard business functions of sales and returns. You or your employees easily scan a product with the barcode scanner and all the information (product identity, price, and tax) will display on your POS.


Even without a barcode scanner, you can still add the product manually details by tapping on a button that corresponds to its name or searching for it by identity. Regardless of the method you use, once all the purchased items have been added to the order, you only select the payment method a customer desires to use and close the deal.


The various types of POS systems will process the returns in unique ways. What matters is that you know how your system is designed to work and the steps you need. NOBLY offers you fast, facile and pliable returns processing that keeps up with your sales workflow.


Step 3: Reporting and BackOffice


Your job as an entrepreneur is to review sales reports, manage inventory, manage employees, and manage customers. There many other aspects of your business that youll only handle at the backend of your point of sale.


The BackOffice tests the capability of your POS system software to do its work. The most vital thing the program must do is to provide you with accurate sales reports. It should aid you in tracking your inventory, knowing the items you are selling, which customer is purchasing it and at what cost. These are just a few of POS dashboard capabilities.




How does a retail POS system work? We believe you can now answer this question with confidence. It may sound complicated, but the system does most of the work. In fact, top brands provide enough information to enable you to set up and operate your POS system with ease. Just remember to buy a high-quality point of sale system such as those manufactured by NOBLY Technology Co. LTD.

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