Point of Sale System Key Terms

Understanding terminology related to point-of-sale systems

If you've decided now's the time to switch over from the old, traditional cash register to a computer-based point-of-sale (POS) system, you'll have lots of decisions to make. You'll first need to get a firm grasp of the features you actually need. Before you begin your research, however, study point-of-sale system terminology to ensure you fully understand the options and choices you'll need to make when it's time to buy a system.

This guide begins with the basic definition of a POS system and then defines other words and phrases you'll run across during your search. Other terms defined include matrix, magnetic ink character recognition, charged-couple device scanner, impact printer and thermal printer.

Point-of-sale system

A point-of-sale system is comprised of both software and hardware that's networked together and used to process customer transactions. A vast improvement over the traditional cash register, a POS system helps improve a business's efficiency and effectiveness by instantaneously recording sales so users can easily track and compare data over specific time periods. With a POS system, users can also maintain a customer database, track inventory and create order lists. You can purchase a complete POS system or you can build one a la carte. EPoS (electronic point of sale) is another term used to refer to POS software and hardware.

Matrix

A matrix refers to the ability of POS software to accept entries for a product at a set price while retaining the ability to track that item not just by total units sold, but also by different criteria such as size and color.

Magnetic ink character recognition (MICR)

Magnetic ink character recognition refers to that part of the check authorization process in which an MICR device reads the data (special symbols and numbers) printed on a check and then transmits that data to the networked retail software. The retail software then forwards the data to the check processor.

Charged-couple device (CCD) scanner

A charged-couple device scanner is a relatively inexpensive tool used with a POS system to read barcodes from three-six inches away. Laser scanners, on the other hand, use a beam of light to read bar codes and can scan from longer distances.

Impact printer

An impact printer, also known as a dot matrix printer, is a receipt printer for a POS system that incorporates pins that strike an ink ribbon, which forces an imprint onto paper behind the ribbon. One benefit of these printers is the ability to simultaneously generate multiple copies of a receipt. Impact printers require refills for paper and ribbons.

Thermal printer

A thermal printer is a receipt printer that uses heat to produce images on specially designed, heat-sensitive paper. These popular printers require only paper refills, but can't simultaneously generate multiple copies of a receipt.

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