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How a POS works in the sales management of your business

How a POS works in the sales management of your business

By María Fernanda Aguirre

Published: May 1, 2025

Let's imagine that you have just started your business, which has had a positive response from the public, but the payment methods you offer are still limited. What is POS? A Point of Sale Terminal (POS) can be the solution that allows you to manage your business in the best way and improve your sales.

It is possible that if you still do not accept credit card payments, your customers will continue to frequent you because of the quality of your service, but in the long run this will end up being a nuisance because it will not facilitate the customer's purchase and you will even end up losing him.

The old cash registers have not escaped technological advances and the demands of an increasingly competitive market. That is why they are being replaced by faster and simpler solutions.

But how does the implementation of a POS system facilitate your sales management, what types are there and how do you know which one is the most suitable for you?

In this article we tell you what you need to know about this technology and give you some alternatives that you can consider depending on the type of business you have.

What is POS?

Definition

Point of Sales ( POS) terminals are tools or devices that allow you to manage the sales of your business or commerce, since they perform tasks ranging from the collection of the transaction, to the printing of the sales ticket and inventory management.

What it is used for

Within the simplification of processes that will allow you to consider the implementation of a POS tool for your business, this decision will also allow you to:

  • coordinate and streamline your commercial operations,
  • achieve an increase in sales,
  • reinforce the security of your business by having less cash available.

How it works

The way this technology works is that for each transaction you intend to carry out, the POS will establish a telephone connection with the customer's bank, in order to perform a card validation operation and the existence of funds. Once this verification has been carried out and the data has been registered in the system, the sale can be carried out.

For the POS to work, it must have hardware (physical device), software (operating system) and manage the sales process through an interface. Let's see what elements each of these components can include:

  • Hardware. Modular or compact POS equipment, which may include:
    • CPU,
    • display,
    • keyboard,
    • drawer,
    • magnetic stripe,
    • bar code reader,
    • receipt printer.
  • Software. Generic or specific management software.

Why use a POS in your business?

One of the main reasons why you should consider getting a POS is the simple fact that it translates into convenience for your customers. This is important not only because the customer will be less likely to give up making a purchase from you if they encounter barriers in their way, but also because the number of buyers is much more likely to increase due to this payment facility.

Consequently, other benefits for you, your business and your customers are derived from the above, such as:

  • increased sales,
  • increased payment security,
  • time optimization,
  • greater cash control,
  • personalized tracking of sales,
  • simplified management of your company's invoicing,
  • reduced risk of theft.

Types of POS

Whatever type of POS you use, it must be integrated and synchronized with the medium through which the operation takes place, whether it is a store, a website or a mobile device.

Depending on the type of business you have and the way it operates, you have different options: Traditional, mobile or virtual POS. In the first two cases, it is possible to use a dataphone or physical device that allows credit and debit card transactions from any establishment. This can be connected by cable to the fixed telephone line or to the company's ADSL line.

Traditional or physical

Designed for fixed businesses such as food stores, stores of all kinds and retail stores, this type of POS is the one we are most used to seeing.

Customers make their purchase through a physical channel in the same physical store. Simply scan the barcode, register the product and print the ticket for the purchase to be registered.

Mobile or portable

This type of POS is useful when the specificities of your business require you to go to your customers' premises or home.

In this case, the POS card reader is connected to a smart phone via bluetooth or connector, so that the customer can enter his card and, subsequently, his PIN. Once the transaction has been completed, the purchase ticket is sent to the customer via email or text message.

Virtual or online

Used by virtual stores and e-commerce, it is integrated to the database of the business website.

Through and thanks to this, the card data is encrypted to the bank and is not known by the seller. In addition, when stock runs out, the website automatically indicates this to the user.

© Arcadina

Hospitality, hairdressing or retail: what type of POS to choose?

We have already seen that there are different types of solutions that you can consider, depending on the type of business you have and its needs. Likewise, depending on the economic sector in which your business operates, you will have more or less options.

We show you three tools that contemplate the use of POS technology to automate your sales.

Distrito K

Distrito K is a company that develops and markets management software and solutions for the optimization of business processes.

Among its solutions, Distrito K offers its SQL POS software, which allows stores to comfortably manage their business.

Services included in this solution:

  • Connection with multiple devices (scales, barcode readers, digital signature collection, etc.),
  • Integrated touch-screen POS,
  • CRM and customer loyalty,
  • traceability management,
  • business Intelligence,
  • treasury management.

© Distrito K

Koibox

Aimed at the online management of hairdressers and beauty salons, Koibox has a CRM that incorporates multiple marketing tools that contribute to increased sales and customer loyalty.

This Wella management software offers a simple and attractive interface, which also offers the option of paying only for those modules or services that are required.

Advantages:

  • CRM,
  • integrated management of business functions,
  • waiting list module for cancellation management,
  • booking tools,
  • marketing tools.

© Koibox

Easy POS

TPV Fácil is a point-of-sale application for small and medium-sized businesses in the hospitality, textile and beauty sectors.

This Microsoft Windows application, developed by Querry S.A., can be installed on POS equipment or computers to enable advanced cash register and stock management functions.

Easy POS

Advantages:

  • Touch-screen design,
  • different types of POS solutions, according to needs,
  • free technical support by phone,
  • own license and optional after-sales service,
  • certifications: ISO 9001, AENOR.

Things that money can't buy? 👉 POS solution to implement

We have already seen that, in commercial terms, providing your customers with different payment methods so that they can easily and conveniently complete their purchases is vital for your business.

When deciding to incorporate POS technology into the operation of your business, it is important not to lose sight of the additional services offered by the provider, such as technical support, especially with regard to assistance in case of failures and crashes, and the deadlines for resolving incidents.

Also, better management of retail tasks will depend on which type of solution you choose according to the type of business you have and without losing sight of the fact that, depending on your sales volume, there will be a commission per transaction that will be applied.

Article translated from Spanish