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What Is a POS Machine?
The full meaning of POS is "point of sale," or, in other words, it's where your transaction is finalized. The term itself can have a couple of different interpretations. In the narrowest sense, it means that the terminal that sits beside the cash register to process credit and debit cards, and any gift cards you accept at your business. More often, when you speak of a POS machine, you'll be thinking about the whole terminal, that has an informative screen and the ability to handle every payment type. There are a lot of special-purpose POS devices, too, and they fall somewhere between the simple card terminal and a comprehensive, full-bore POS system. Whether your needs take you to the high-end or the low-end, every POS machine needs to handle some of the same basic functions.

Basic POS Functions:
The original POS machine was a simple cash register. It didn't do much by modern standards, but it did keep a record of every sale that a cashier had rung in. From that, as long as you knew how much cash was in the till to start the day, you could work out whether any money had gone missing. Your daily totals showed you whether your sales were increasing or decreasing, and from counting the number of transactions, you could work out the value of your average sale. If you knew the dollar value of your starting inventory, you could also work backward from your sales totals to find out if you were losing money to inventory theft or unrecorded sales. These are all basic POS functions, and even the earliest cash registers made it a whole lot easier to run a sales-based business.

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