Transactions at Point of Sale (POS): A Simple Guide

Have you ever thought about what happens when you use your credit or debit card (please refer here about how card transaction works) to purchase a restaurant or store? In this blog post, we will explain the concept of a point of sale (POS) transaction and how it works, shedding light on an aspect of our daily financial activities.

What is A Point of Sale (POS) Transaction?

A POS transaction occurs when you use your credit or debit card to pay for goods or services at a location such, as a restaurant, store, or even a coffee shop. It is essentially the same as the checkout process for purchases in person.

What about shopping online?

When shopping online you go through a checkout process where you enter your card details on a website to complete your purchase. This is different from POS transactions. Point of Sale (POS) transactions are typically made using credit or debit cards in establishments like stores, restaurants, and coffee shops. To process the payment, in these transactions, a card reader or terminal is used.

On the other hand online transactions occur over the Internet where customers input their card information on websites to make purchases. Online transactions fall under the category of card not present payments. Unlike POS transactions, online transactions do not take place in a store. As a result, issuer and merchants have quite different liabilities for POS transactions and online purchases. Worth noting, both are based on Electronic payments, as encompass both POS purchases and internet purchases.

POS transactions, which are the foundation of in-person purchasing, make our life simple and easy. It’s a routine process that’s easy, safe, and effective and makes it possible for us to enjoy the things we love with comfort and peace of mind.

2 Comments

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