The point of sale is the place and time at which a transaction takes place. Whenever a buyer and seller come together for the purpose of conducting a transaction, a point of sale is created. Also called a point of purchase, a point of sale can take a wide variety of forms. The cash register line in a gasoline fueling station is a point of sale, for example, as is the checkout page in an online store. The point of sale can be a salesperson's desk in an auto dealership, as another example, as can someone's front porch in a door-to-door sales transaction. Transaction Processing System
A transaction processing system can be defined as a set of policies, procedures, equipment and technology designed to facilitate transactions at the point of sale. Transaction processing systems have evolved alongside advances in technology to add convenience, reliability and security to business transactions. Just like the point of sale itself, transaction processing systems can take a variety of forms. A cash box and a pad of paper at a lemonade stand is considered a transaction processing system, for example, as is a complex software package that connects digital cash registers, credit card processors, inventory databases and accounting software. Correlation
For every point of sale there must be a transaction processing system to accompany it. The correlation is so close that software-driven transaction processing systems are often referred to as POS (point of sale) terminals. Different point of sale situations call for different transaction processing systems, and new transaction processing systems emerge to facilitate new point of sale types. An online retailer, for example, would be unwise to use a hand-operated cash register to process transactions over the phone; instead, online retailers often rely on software transaction processing systems. Other Applications
The point of purchase is an important concept for other marketing disciplines in addition to sales. Point of purchase displays in retail outlets use advertising or sales promotions to encourage impulse purchases while customers stand in line, for example. The 21st century has seen the rise of mobile points of sale and transaction processing systems, bypassing traditional cash-register sales models for face-to-face selling situations. In Apple's retail stores, for example, salespeople use smartphone credit-card readers and mobile transaction processing systems to ring customers up wherever they stand. http://smallbusiness.chron.com/point-sale-vs-transaction-processing-systems-17548.html
7 reasons to switch to a point-of-sale system
By Jeff Wuorio
If you're a veteran retailer, you know the problem: Your inventory doesn't match your tallies. Sales are going unrecorded. Your staff is spending far too much time chasing mistakes instead of tending to customers. Something is seriously wrong, and you're just not sure what the problem is. These and other snafus suggest that it's time that your business did away with its cash registers and stepped up to a point-of-sale (POS) system, such as Microsoft Dynamics Retail Management System and Microsoft Dynamics Point of Sale (POS) . A POS system is a computer software and hardware network that records sales as they're occurring; it solves a variety of operational and record-keeping headaches. If you need more proof, here are seven signs that your business could boom with a point-of-sale system. 1. Your "sudden shrink" no longer goes undetected. POS systems such as Retail Management System are designed to immediately record any and all sales. Not only does that mean timely and accurate sales tracking, but a POS system also lets you readily identify inventory levels, particularly when what you have on the books doesn't jibe with actual stock. "You see it with the onset of sudden shrink—when you realize that inventory is missing or your numbers just never seem to match up," says John Rarrick of RBS Inc., a Nyack, N.Y.,...