In short: A POS (point of sale) system is the combination of hardware and software a business uses to take payments and run sales. It can include a till, card reader, receipt printer and software that tracks stock, sales and reports. A card reader alone just takes payments; a POS system does more.
POS stands for 'point of sale' - the place and the kit where you take payment and record a sale. But the term covers everything from a £19 pocket reader to a full restaurant system, so let's untangle it.
Card reader vs. full POS system
A card reader just takes payments - tap, chip, done. A full POS system does that and also rings up items, tracks stock, manages tables or appointments, and reports on sales.
Most sole traders and market sellers only need a reader. Cafés, shops and restaurants usually want a fuller POS.
What a modern POS can do
Beyond taking a card, a POS system might include:
- Item/menu management and quick-sale buttons
- Inventory and stock tracking
- Table plans, tabs and tipping (hospitality)
- Appointments (salons) and customer records
- Online store and click-and-collect
- Sales reporting and staff management
Do you need one?
If you sell a few things and just need to take a card, a simple reader (SumUp, Square, Zettle) is plenty. If you carry stock, run tables, or want online and in-person to talk to each other, step up to a full POS like Square, Lightspeed or Epos Now.
FAQs
Does 'POS' mean the card machine or the software?
Both, loosely. 'Point of sale' refers to where you take payment - which can mean just a card reader, or a full till system with software, hardware and payments combined.
What does a POS system do besides take payments?
A typical POS system tracks stock levels, records every sale, manages staff and shifts, prints or emails receipts, and produces sales reports. Many also handle refunds, discounts, customer details and integrate with accounting software, giving small businesses a clearer view of trade.
Do I need a POS system for a small shop?
Not always. A very small shop or market stall may only need a card reader and a simple till. A POS system makes more sense once you carry stock, employ staff, or want detailed reporting to manage the business day to day.
How much does a POS system cost in the UK?
Costs vary widely. Entry-level setups can start from the price of a card reader plus a low monthly software fee, while full till systems with hardware run to several hundred pounds upfront plus ongoing charges. Always check transaction fees on top.
Reviewed by Nathan Keeble - Founder, The POS
Independent UK payments research. We research the pricing, read the small print and write it up in plain English.