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The difference between a POS system and a POS terminal

Views: 0     Author: Site Editor     Publish Time: 2024-12-10      Origin: Site

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Understanding the difference between a POS system and a POS terminal can be confusing, especially when the terms are often used interchangeably. To make things easier, we'll quickly break down what each one is and how they differ, so you can choose the right equipment for your business with confidence.

What is a POS (Point of Sale) system?

A POS (Point of Sale) system is software that helps merchants process payments and manage their sales operations. While a POS can sometimes refer to a physical device, in this case, we’re talking about a virtual system that operates on your computer, tablet, or smartphone.

Let’s break it down with an example: the Paysera POS system. This virtual system allows you to track which items are selling quickly, manage customer information, generate sales reports, create invoices, and even set up loyalty programmes and discounts. One of the best features for merchants in Lithuania is that it automatically sends fiscal data to the Lithuanian State Tax Inspectorate, saving you the time-consuming task of manual reporting.

It’s also worth mentioning that the features of the Paysera POS system are unique, and not all POS systems will offer the same capabilities. However, the core concept remains the same – it's a virtual system designed to help physical businesses manage their inventory and generate reports efficiently.

What is a POS (Point of Sale) terminal?

As efficient as a POS system is, it can’t handle everything on its own. In this case, a POS terminal is an actual hardware device used to process transactions. It typically includes components like a card reader, a touchscreen or keypad for entering amounts, and sometimes a receipt printer. It’s the part that directly interacts with the payment process.

Even if you're not familiar with the term, you've likely seen a POS terminal before. Take a look at the image below to see what one looks like.

What is a POS terminal?

What’s the difference between a POS system and a POS terminal?

By now, you might have a good idea of the difference between a POS system and a POS terminal.

To put it simply, a POS system is the software that helps you manage your entire business – tracking inventory, handling sales, generating reports, and managing customer information. A POS terminal, on the other hand, is the physical device you use at the checkout to process payments.

We hope you found this helpful, and we're sure you'll do great! If you ever need a hand, our client support team is here to support you whenever you need it.


We have been specialized in the development of RFID application management software, POS terminal, barcode and RFID hardware integration for 15 years.

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