Point-of-sale terminal

Definitions

A point-of-sale terminal (POS terminal) is

• "a hardware and software system used for checkout at a retailer."
• "a physical device used by a merchant to process payments for goods and services purchased by a customer.

Overview

The technology, which is deployed in supermarkets, department stores, discount chains, and other commercial facilities, offers several kinds of services:

• check validation and credit card authorization,
• direct transfer of funds from a customer's account to the merchant's account by means of a debit card; and/or
• banking services; i.e., direct withdrawal of currency from (or deposit in) a depository account, using the merchant's cash drawer and sales personnel.

The POS terminal, which may be operated by a store clerk or by the customer, includes a telecommunication link to customer information files within the institution providing the service.

Customized hardware and software is often used at a POS terminal, part of which is used to swipe and process credit and debit card information.

Sources

• A "Kill Chain" Analysis of the 2013 Target Data Breach, at 2.
• Selected Electronic Funds Transfer Issues: Privacy, Security, and Equity, at 12.