What is a point of sale system (POS)

A Point of Sale (POS) system is a comprehensive solution utilised by businesses to facilitate and document retail transactions. More than merely processing cash payments, a POS system must adhere to meticulous accounting regulations concerning cash and card transactions.

A POS system encompasses far more than just an EFTPOS (Electronic Funds Transfer at Point Of Sale) terminal. It processes the transaction data, interfaces with payment gateways, registers the payment, and has capabilities to handle various payment methods. A POS system should be capable of generating specific reports, printing customer receipts among other functionalities.

Retail establishments and hospitality venues like restaurants typically require a POS system to process transactions. ‘Cash sales’ within this framework refers to transactions where payment is rendered immediately upon purchase, irrespective of the payment method, which could include cash, card, mobile payments like PayID, or integrated solutions like Square.

Daily reconciliation, also known as the ‘end-of-day’ process, is an obligatory practice where the day’s transactions are tallied and recorded on the POS system.

Understanding Product-Certified POS Systems

In Australia, businesses handling cash transactions are obliged to use a POS system that is product-certified. If your business is looking for a POS system through purchase, lease, or other arrangements, evidence of product certification must be provided.

Failing to operate with a certified POS system when required can result in significant fines, as businesses are legally mandated to formalise all sales accurately through a compliant system or, alternatively, issue invoices for each transaction.