Point of Sale (POS) Systems are programs that are used primarily to help businesses run smoothly and more efficiently. POS systems perform a variety of tasks, from the basic checking out of goods, to more elaborate and sensitive functions as tracking inventories, identifying customer patterns, analyzing sales, and other more complex operations.

Merchants have the option to choose from one of three kinds of Point of Sales Systems. The first kind of POS system is termed Standalone Electronic Cash Registers or ECR. These have very limited functions as each ECR unit operates independently of each other. These devices can only provide individual sales reports and can not integrate with other units however; these machines can still compute sales and taxes; change due the customers; basic sales reports; and, to some extent, scanning. ECRs are the most reasonably priced POS systems around, and this is what makes this option a favorite among small and start-up businesses.

Another option available to merchants is called the Network or ECR based POS System. This kind of system is similar to the standard ECR but, unlike its predecessor, all the units or terminals are interconnected. All their data are linked to one main ECR in the establishment and this machine collates the information. The functions, however, are still limited. Tracking of inventories and detailed generation of reports may still need to be done manually.

Finally, the third option open for merchants is the Controller-based POS system. Controller based systems are the most comprehensive types as all the terminals and functions are integrated. Data from each of the terminal, whether the cash register at the check out counter, or the pen-type scanner used to receive items from suppliers, flow to a central core or main system where these information are processed and stored. Because of the method by which data is inputted (scanning), merchants can be assured that erroneous entries would be minimized and data presented on reports are almost 100% accurate. In addition to this, what makes controller-based systems valuable is the dual-controller arrangement – an internal configuration which allows each computer to back each other up. Through this feature, merchants feel more secure about the safety of their files. They know that, in case the main computer bogs down, the information contained can be retrieved from other sources.

Which type of POS system should be installed in your establishment would depend mainly on your present and projected needs. If you feel that you only need an ECR then don’t let a glib talking salesman convince you to buy a Controller-based POS system. You need to fully utilize the potential of your POS system. If you are unable to do so, then this device will be nothing but a very expensive and highly elaborate cash register.