What Is Credit Card Processing (POS)?

View our list of credit card processing systems for your business

The system typically consists of software and hardware components, including a credit card reader or terminal, a computer or mobile device, and internet connectivity.

When a customer makes a purchase with a credit card, the merchant enters the transaction information into the POS system.

The system then communicates with the customer’s credit card issuer to authorize the transaction and transfer the funds to the merchant’s account.

POS systems may also include additional features, such as inventory management, employee tracking, and customer relationship management tools.

Many POS systems are now cloud-based, allowing merchants to access their sales and transaction data from anywhere with an internet connection.

Credit card POS systems offer a convenient and secure way for merchants to accept payments from customers, and they are widely used in retail stores, restaurants, and other businesses.