Point of Sale (POS): What It Means and How It Links to Loyalty

By Alva Chew · Updated 2026-11-05

Definition Point of sale (POS) is the place and moment where a customer pays for goods or services, and the till, terminal or software that records the sale. For a loyalty programme, the point of sale is where points are earned and redeemed, so the fewer steps staff need there, the more often it happens.

What is a point of sale?

The point of sale is where a customer pays and the sale is completed. In a café it is the counter. In a restaurant it may be the counter or the table. In an online shop it is the checkout page.

The abbreviation POS is also used for the equipment and software at that spot. A “POS system” usually means a till or tablet, a card reader and software that records each sale. Some add stock counts, staff logins and sales reports.

What does a POS system do?

A POS system handles the moments around payment. The exact set depends on the product, but these are the common jobs:

Records each sale, with items, price and time.
Takes payment by cash, card or a mobile wallet.
Prints or sends a receipt.
Keeps a daily record of sales you can check against your takings.
Some systems also track stock and staff hours.

Cards matter here. The US Federal Reserve reported that cards made up over three quarters of noncash payments by number in 2024.

Measure	Figure	Year	Scope
Total noncash payments	236.6 billion	2024	US, cards, ACH and checks
Card share of those payments	Over three quarters, by number	2024	US noncash payments

Source: Federal Reserve, initial findings of the 2025 triennial Payments Study, 1 July 2026.

Those figures cover the United States. Payment habits differ by country, so check your own market before you pick a card reader.

Why does the point of sale matter for loyalty?

A loyalty programme only works when points are added at the moment of payment. The customer has just spent money, the receipt is in hand and the bill amount is known. If adding points takes a long form or a second device, staff skip it when the queue builds.

That is why the counter is the test of any programme. Ask how many taps a staff member needs to add points, and whether a new hire can do it after one demonstration. The digital loyalty card on the customer’s phone should be quick to show, and the amount entered should be the bill amount.

How are points earned and redeemed at the point of sale?

Earning follows the earn rate. With 1 point per US$1, a US$8.50 bill earns 8 points if you round down. Redeeming takes points off the same bill, so a customer with 100 points worth US$5 pays US$3.50 on a US$8.50 bill.

Step	What staff do	Example
Customer shows card	Open the member’s code or look up their email	Member shows phone
Enter the bill	Type the amount spent	US$8.50
Add or redeem	Add points, or take points off the bill	+8 points, or 100 points for US$5 off
Take payment	Charge the remaining amount	US$3.50 if redeemed

Keep one rule for everyone. A single points-based loyalty program with one earn rate is easier to run at a busy counter than several rates and special cases. For a step-by-step setup, see how to launch a loyalty program at the counter.

What should you check before choosing a POS?

Fees. Look at the monthly price, the card processing rate and any hardware cost. Vendors publish these on their own pricing pages.
Speed at the counter. Time how long a normal order takes from start to receipt.
Reports. Check you can export sales by day and by outlet.
Several outlets. If you plan to open more, check how the system handles more than one location. For loyalty, see multi-outlet loyalty.

How Gimify fits at your counter

Gimify is a points-only loyalty programme. Staff add or redeem points on any phone at the counter, with no new hardware or terminal, and the member’s card lives in Google Wallet. The free plan covers one outlet with unlimited members.

Questions owners ask

What does POS stand for?

POS stands for point of sale. It names the place where a sale is completed, and in everyday use it also names the system of till, card reader and software that records that sale.

Is a POS system the same as a cash register?

A cash register records a sale and holds cash. A POS system also takes card payments and usually keeps sales records, and many add stock counts and reports. The sale itself happens at the same spot.

Where do loyalty points get earned?

At the point of sale. The customer pays, and the points follow the amount spent. Redeeming happens at the same moment, when the customer uses points to pay part of the bill.

Do I need a POS system to run a points programme?

No. A points programme needs a way to see the bill amount and a way to add or take off points. That can be a staff member entering the amount on a phone at the counter.

What is the difference between point of sale and point of purchase?

Point of sale is where the payment happens. Point of purchase usually means the display area near it, such as the shelf or counter stand that prompts an extra buy. Both terms are used loosely, so check the context.