What is the primary function of a point-of-sale (POS) system?

The primary function of a point-of-sale (POS) system is to process customer payments. A POS system is crucial for retailers and service providers as it serves as the final point where a transaction occurs between the business and the customer. This involves the actual calculation of the amount owed, processing the payment through cash, credit or debit cards, or mobile payment options, and providing receipts to customers.

While managing inventory levels, analyzing sales data, and training employees are important functions in a retail or service environment, they are considered secondary to the core functionality of payment processing that ensures the transaction is completed successfully. Many POS systems can integrate with inventory management software, track sales data, and even assist in employee training, but their fundamental role remains centered around facilitating and completing customer transactions.