Point of Sale
Also called: POS, POS machine, POS terminal, Swipe machine, Point of Sale machine · Topic: Payment Systems and Digital Finance · NCERT: Class 7, Ch 8 "Banks and the Magic of Finance"; Class 10, Ch 3 "Money and Credit"
Meaning
A Point of Sale (POS) machine is a swipe or insert machine at a shop that accepts payments by card. The customer swipes or inserts the card, the amount is entered, and the customer types the PIN. The amount is instantly deducted from the account. POS machines let shops accept payment without cash.
After demonetisation in November 2016, many shops started using POS machines. RBI's Payments Infrastructure Development Fund (PIDF, 2021) helps pay for POS and QR acceptance in tier-3 to tier-6 centres and in the North-East.
Example
At a medical store, a customer's bill comes to ₹850. The shopkeeper enters ₹850 on the POS machine, the customer inserts a debit card and types the PIN, and the payment goes through in seconds.
Don't confuse with
- Automated Teller Machine (ATM): a POS machine takes card payments for purchases at a shop. An ATM gives out cash.
Related concepts
- Automated Teller Machine
- Personal Identification Number
- National Financial Switch
- Debit card
- Credit card
- Plastic money
- Card tokenisation