An electronic device that is used to process card payments at retail locations is known as a point of sale terminal (POS terminal). A POS terminal reads the information from the user’s debit or credit cards. After which, it checks if the funds in a user’s bank account are sufficient. The funds from the user’s account are then transferred to the account of the seller. Finally, it records the transaction and prints a receipt.
Point of sale terminals consists of a combination of software and hardware which permits acceptance of card payments without any updates of cash registers of retail locations. The cards are read directly.
The installation charges of POS terminal vary according to the size of the business and the terms from the supplier. Small scale business might have to pay an additional per transaction fee, along with the rent for the terminal.