Point Of Sale machine - POS

Point of Sale Terminals

However, ATMs would not be the final solution to the common electronic goal, because they still involved the use of paper money. Yet, in a second generation machine called a Point of Sale terminal (POS), the prospect of having a truly cashless society suddenly took a giant leap forward. The potential of POS for achieving a totally automated economy was enormous. It was logical to assume that if the capability existed for electronic banking to the extent of obtaining cash out of an account using a networked ATM system, then the technology also must be ripe for eliminating the need for physical money altogether. POS terminals were seen as a key ingredient in the transition to this goal.

Instead of just having an ATM at or near each place of business, the banks and retail outlets started to construct a network of intelligent cash registers with direct EFT links to member banks and also connected to the global network. These POS terminals were different from the normal cash registers that were used in the past. Most of the previous cash registers, no matter how computerized they may have been, only functioned as recorders of each transaction and repositories for the cash and checks a business received. They may have involved computerized inventory control, but they were not connected to a broader network and could not communicate with a customers bank. The POS terminal, however, would still be able to handle cash and record each purchase, but it was also designed for cashless buying and selling. In this sense, it was completely tied into the global EFT network so that every transaction could be immediately recorded, validated, and debited to the appropriate customers account.

A point of sale terminal (POS) is an electronic device which is used to process card payments at retail locations. The point of sale terminal system involves records maintenance and tracking customer orders, processing credit and debit cards and connecting to other systems in a network. It is the computerized replacement for a cash register. POS terminal machines are used to accept cards for payment of service and good. POS terminal allows a cardholder to have a real time online access to funds and information in a bank account through its debit or cash cards.