How Are "Point of Sale" (POS) Systems Different From a Cash Register?

Point of sale (POS) is a technology for financial				different POS systems. Kitchen monitors are used to
transactions at retail establishments, for example, at a				view orders, and manage the operation. Systems are
supermarket. A POS system includes the hardware				often enhanced with wireless systems which enable
and software used for checkouts, the computer-age				communications. This allows servers to send customer
equivalent of a cash register. The most significant				orders to the kitchen from any place within the
difference between a POS system and a cash				restaurant and can be used to make credit card
register is communication. When a customer				transactions more secure because the customer's
processes a transaction at the supermarket,				credit card is never out of their sight.
automated response includes an update of inventory. If				A new trend in POS, especially at supermarkets, is
necessary, a reorder to replace the item is processed,				self-checkout. In a self-checkout system, the customer
the tax record is maintained, and the store				scans the barcodes on the individual items. In the case
management system is informed.				of produce, a scale is employed, and the customer
The main component of a point of sale system is the				enters a code from a menu. Usually some kind of
computer. It is wise to use the POS computer for only				validation is utilized to compare the items scanned with
sales transactions, reports, and inventory control, and				the weight of the product. Payment on these systems
isolate use of POS computers from general purpose				is similar to using an ATM machine. The benefits of this
activities. Use a separate computer for surfing the				system include reduced overhead for staffing, and
web.				also from reduced time that the customer must wait
Two standardized software systems in common use				for checkout.
for POS are JavaPOS and OPOS. These standards				RFID (radio frequency identification) is a technology
conform to the UnifiedPOS that is advocated by the				that shows promise for self-checkout. With this
National Retail Foundation. JavaPOS was designed by				technology, the POS process could eliminate the
Sun Microsystems, IBM, and NCR, and is a JAVA				reading of bar-codes. Since RFID does require line of
compatible standard. OPOS (OLE for POS) is a				sight (LOS), the customer could bag their purchases as
standard followed by Microsoft, NCR, Epson, and				they make their choices, and not need to remove their
Fujitsu. OPOS is a Windows compatible standard				items from the bag in order for an inventory of
(COM). Celerant, Intuit, MICROS Retail, Microsoft, NCR,				purchases to be compiled. Integration of RFID readers
Oracle, and SAP are the most popular POS software				into POS systems is not complicated. The interface is
solution providers.				comparable to a bar-code reader.
Security is an issue for POS systems. Poorly				Retail POS systems cost between $1,500 and
implemented systems are one of the leading causes				$20,000. Options include bar-code scanners, credit card
of credit card data compromises. A well designed				readers, and receipt/invoice printers. POS systems
system will encrypt wireless transmissions, and will not				often are offered with integrated accounting modules
retain full magnetic stripe, credit card validation code, or				and inventory control systems. Reports can be
PIN numbers. All sensitive traffic over public networks				generated to include sales, costs, and profits by item,
should be encrypted.				salesperson, category, or time-period.
There are several subsets of POS systems, each of				The computer is an excellent tool for retail industry. By
which is worthy of further study. Industry specific POS				marrying the cash register with a well-implemented
packages are available for auto repair shops, beauty				computer system, significant enhancements to the
salons, pharmacists, dry cleaners and more.				operation are possible.
The restaurant industry is well served by many