Do you remember when every business used to have a cash register to maintain the transactions? The register that wouldn’t even know the product cost. The person handling the register had to do EVERYTHING, from manually entering the price to taking the money to hand over the receipt. Too much work right? Well, we have been carrying out transactions super smoothly since the day the “Point of Sale” system has arrived. But wait, do you know what a POS system and their components is? Of course, you do! Even if you don’t, I will explain to you completely what this system is and how it works.

What happens when you go shopping or to buy essentials? You just hand over your picked item to the cashier, he then scans the barcode and taps a few keys at the register. Everything is done so quickly and you take your item with you within a few blinks. Now, read ahead to know how this process is carried:

A POS system is basically a combination of the components hardware and software, these both connect together to help the POS system work.


Although the hardware components differ from business to business, we will focus on some of the important components.

  1. POS Display: This is the primary need of every business. The POS Display could be a touchscreen PC monitor, a mobile device having a POS app, or a cash register with buttons.
  2. Cash Drawer: You definitely need a cash drawer to store your daily taking like cheques, cash, receipts, vouchers, slips, etc.
  3. Receipt Printer: How can you forget the proof of your transactions? The receipt printer is really important to maintain end-of-day reports as well as for customers to keep as proof of payment.  Also if you send receipts in Emails then you don’t need a receipt printer.
  4. Network Device: You definitely need a network set up to connect with your computer, no matter if you are relying on a cloud-based or on-premise system.
  5. Card Machine: Card machine is used in the case your customer gives you debit or credit card instead of cash. You need software and SIM if you are using a traditional card machine and if your card reader is app-based then you need Wi-Fi network or mobile data.


Without Software, your POS system is not going to run. There are two components of a POS software, frontend interface (mainly for the point of sale) and backend (for the analytics and management at the back). Basically the frontend interface is used by the staff and the backend is assessed separately.

Let’s see how your data is stored:


In this case, the Software is installed on the computer of your store premises. For on-site installing, you need to purchase Software licenses and have to update this software manually. Also, it does not need the internet as the software is based on your closed computer network.


This process is quite different from the On-Site one. In this process, you have to host the system, which means the data is stored on the internet servers of your POS providers. The best part of this system is you can access it from any computer browser. You do not need to update or maintain the system manually as the task is done by your POS provider.

So, I hope now you are familiar with all the components of a POS system.