POS Device Payments Explained

When a customer buys something at your store, the cashier will ask how they would like to pay. If they choose to use cash, the cashier will open the cash drawer and ring up the sale on the monitor, then take the money from the customer and hand them their change (if needed). If they’re paying with a credit card, the cashier will select the credit card option in the POS software and prompt the customer to swipe, dip or tap their card using the card reader. Once the transaction is completed, it will be transmitted to the payment network for approval. The card issuing bank will do a few quick checks to make sure that the purchase is valid, then relays an approval response back to the POS terminal and software.

Some POS systems automatically update inventory based on what has been sold, making it easy for the merchant to order new stock and prevent chargebacks from customers who don’t receive their purchases. Other POS systems will update inventory manually, which can be more time-consuming.

The first step in a pos device payments system is configuring the software. This is usually done through a central management dashboard that will be accessible to all employees who need it. If you bought a POS with included installation, the POS brand will send you forms to fill out with your business information and connect you with a customer service–or sometimes called “customer success”–representative to ensure that your POS is configured correctly. pos device payments