A POS is a software system (POS) and electronic micro computer (ECR) that manages the sales process through a friendly interface for sellers; pos software system uses a single computer or electronic system, which allows the creation and printing of receipt or bill of sale, with details of references and prices of the item sold. POS software also updates the changes in the level of stocks of goods (inventory) on the basis of the data of sold items. It acts as a medium for authorizing payments by credit cards, debit cards and gift cards, belonging to different financial institutions.

The point of sale software system is connected to different merchant banks and when the customer swipe their credit or debit card, the POS system contacts the merchant bank for authorization and once the amount is authorized, the same amount is deducted from the customer’s bank account. This is how a POS software enables card payment.