If you want to understand what POS software is, you should first get familiar with the definition of POS. POS means point of sale or point of service, which is practically any place where transactions occur, like the cashing register of a retail shop or a checkout counter. As it follows from the definition,pos terminals can be found in restaurants, hotels, bars, shops, stores, malls. POS stands for both the hardware and software which make up the whole system.



If you examine a given POS system, you will see that it's divided in two parts - hardware and software. Since we are discussing pos software in this article, let's start with a brief description of the history behind pos software. The early electronic cash registers had a special computer application, which provided some extra features, although they were quite limited compared to today's standards. But the main idea is that the ability to program a point of sale terminal allowed developers to be more creative and made way for a lot of new concepts, such as real time labor and food cost reports.

A protocol is a predefined set of rules which computers follow when engaged in communication with one another. POS terminals communicate with other devices (peripherals) using a given protocol, so we can say that the protocol is the language that computers speak. Every pos software comes with a support of a certain protocol, so that it can succesfully interact with peripheral devices, such as POS printer, a bar-code scanner, and a credit/debit card reader. Some of the popular POS communication command protocols are EPSON Esc/POS, ADM 787/788, DSP-800, CD 5220.

The developers of pos software must follow standards, in order to insure an absolute compatibility between the different devices. Microsoft, NCR, Epson, and Fujitsu-ICL made the first standard in the industry, called OPOS. The advantage of OPOS is that it's language independent, as it's based on COM technology, because of which sometimes people call it "OLE for POS." Another standard was created by SUN, IBM and NCR, known under the name JavaPOS. Because it's programmed on Java, JavaPOS is platform independent, it can run on Windows and Unix based pos terminals.

The high-quality pos software can provide several benefits to your business. First of all, it will increase your profits. Second, it will lower the inventory costs. It will improve customer service. Automate repetitive tasks, maximizing efficiency by at least 20%.

If you just consider for a minute all the places where you can find pos terminals - all the stores in the country, then you will easily see that there is a huge competition in the pos software industry, there are a lot of products available on the market. Choosing the right one is never easy, but there several factors to consider before buying. First of all, take into account the turnover of your business, whether it's $1000 or $100,000, it all makes a difference. The second important factor is the industry in which your business operates, it could be a grocery store, or a sports store, car dealer shop, appliances. Bear in mind that they best way to find out if a given software is bug-free and stable, is to check with the retailers who are already using it.

The larger percentage of POS software solutions are Windows based. Of course, Linux and MAC machines are probably more reliable, but the downside is that there aren't as many pos software solutions for them, which will limit your buying choices. If a Windows system is configured properly, it can operate without any problems for months and even years. POS software can support different Windows versions, including Windows 95, 2000, or XP, although some may only work on XP.