As the business reinvent their operations to suit the current demands, there is an ever-pressing need for them to expand into digital operations. The 2016 demonetization drive of the incumbent government was one of few important steps to push India from a cash economy to adoption of cashless payment services. The payment interface can be through a UPI (United Payment Interface), use of a Point of Sale Machine (POS Machine) for swiping debit or credit card, use of various online wallets such as Amazon Pay, Phonepe, Paytm etc. Point of Sale (POS) machines are a very popular method of payment, accepted by almost all merchants across the world. The payment mechanism here is safe and secure, and a successful transaction is processed by the generation of a bill with the transaction number for tracking the payment. You need to make sure to find the Best POS Machine in India.

What is a POS Machine?

Now, let us try to understand what a POS system is. Simply put, a POS system is a point of sale or point of purchase of goods, for which the merchant bills the customer for the products he buys, and the buyer pays the amount to the business owner using any of the numerous payment options. This could be an online store, this could be at the checkout counter of a store, or let us assume you have set up a stall in a fair, and you have eligible clients, then your stall too becomes a point of sale. Thus, a POS machine is a machine that is designed to cater to the POS system, that is, it is an important part of the point of sale system, that allows the customer to make payment for the goods, using a hardware device that has inbuilt softwares for successful operation.

Importance of POS Machine

Every business requires a POS machine, given the digital day and age! A POS machine effortlessly integrates into your sales side, as an integral part of the business ecosystem. The function of a POS machine is to permit the acceptance of payments from all the clients who purchase goods off your store (be it online or offline). By the use of a POS machine, one can keep a check on the sales, and can always keep himself abreast of the sales in a given duration or period. In previous times, the POS machine acted as an interface just for offline systems, accepting payments and keeping cash registers. However, the modern POS machines can simply be your mobile phone, with the internet-enabled app, linked to your bank account. So the question obviously comes to mind, as to how does the POS machine operate in a POS system?

The Working Process of POS Machines

Let us assume that you have an offline store, such as a Medical store. Now, when a customer desires to purchase goods off your store, he is expected to submit his prescription. The salesman enters the details of the sale on the POS system that in turn computes the total bill for the customer. Given the role of digitization, the merchant generally possesses a POS machine that is issued by the merchant’s bank. This POS machine is linked to the bank account of the merchant. The customer agrees to pay the bill, and permits the bill to be charged to his or her account. This is done so by the customer swiping his credit or debit card, in the POS machine of the merchant. The POS machine asked for credentials from the customer before permitting the transaction to take place. Once the necessary credentials are verified, the transaction is deemed complete and the POS machine auto-generates a receipt with the details of the transaction. A copy of this receipt is given to the customer along with the bill. Therefore, the POS machine is a hardware that enables the POS system to accept payment from various customers of different banks, to process the payment into the merchant’s bank account.

Benefits of POS Machines

Numerous advantages are associated with the use of POS machine for your business. The first and the foremost advantage of doing business using POS machines is that you are presenting a modern outlook to a customer. The young customers do not like to carry cash and prefer to make payments for their transactions using digital systems like POS machines. The second most important advantage of having a POS machine is that, since this is a digital payment system, no amount of actual cash changes hand and thus it is a very safe method of transaction. In the unwanted situation of a robbery or theft, the robber cannot get away with any cash as there is no actual payment through cash happening. Thus, it is a very safe system.

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Maintaining Records of Your Sales And The Profits

Next, using POS machine for sales is an excellent method for maintaining a record of your sales and the profits. The POS hardware has inbuilt functions that calculate your daily sales, expected profits, earning, etc. In Fact, if the POS machine is used for operations that expect tips for waiters, valets etc, then the client can add a requisite percentage of the bill, or a whole number as a tip. The POS machine calculates the same and charges the customer accordingly. The POS system can either accept money, or permit a sales transaction through numerous ways. It could either be through Magnetic stripe card swiping, Chip card insertion into the POS machine, wifi enabled card payment, enabling QR code scanning for wallet payments etc.

What are Its Charges?

As it is understandable, the POS machine is offered through your bank, and thus it carries a usage fee. Depending on the bank, the charges differ. As a thumb rule, you pay 2% of the transaction to the bank as service charges. However, if the volume of sales is more, the bank can always offer you exclusive offers to reduce your charges. It is always prudent to use the POS machine of an established bank such as SBI, ICICI, AXIS, HDFC etc. Not only are the POS machines issued by these banks very sturdy and dependable, these machines are long lasting and robust. POS machines need a dedicated internet connection, which can be LAN wire based, Sim card based or telephone line based internet.

Manufacturers of POS Machines

There are many POS machine manufacturers in India. The major operators of POS machines in India include Ingenico International, Mswipe Tech, Verifone Sales, Pine Labs, and so on. The POS terminal differs in size, functionalities, complexity of operation, memory and many other features. As the POS machines increase in terms of the features linked to it, so does the price of the POS machine as well. The starting price of the POS machine is around 8000 Indian rupees in which one can buy a basic POS machine. It has a limited memory, and it is not very feature loaded. The merchant can opt to rent out the POS machine from a bank at a specified rental charge and transaction service charges.

POS Machine Price in India

The POS machine price in India can easily range from Rs 10000 to as high as Rs 60000 rupees, depending on the model, brand and features. However, Pine Labs and Verifone offer the Best POS machines in India. Although one should be excited about new technology, only trained people should operate the POS machine. The POS machines must be regularly serviced and the bank or the service provider must regularly update the software. One must use high-speed internet with no bandwidth drops to ensure that all transactions are finished without any hassles.


POS machines are an integral part of a business, irrespective of the size of the business. POS machines offer a simpler, safer and cash free transaction. Many people prefer such transactions as it eliminates the need for any cash, and it is easier to follow a transaction through statements. There are many POS machines offered by various companies and banks, but one should select that POS machine which is loaded with essential features, and available at the best offer from the bank. POS machines are prone to constant maintenance and thus, must be handled with care.

FAQ's: POS Machine

Q. I have a showroom of branded clothes. I want to install a POS machine for payments. What should I do?

Ans. Taking the step to digital payments is an excellent decision. Please approach your bank that operates the current account of your showroom. Negotiate the best deal for yourself.

Q. I made a payment using a POS machine but the transaction failed after deducting money from my account. Can I lodge a police complaint for cheating?

Ans. The good thing about POS transactions is that if a payment fails, it is auto refunded to your account in 3-5 days. Please be patient and trust technology.

Q. My bank is charging me a lot of money for using the POS machine. What to do?

Ans. You can always talk to the bank again. Else, you might explore POS apps on your mobile, eliminating the need of a bank. Your account can be linked to the app and the payments can happen directly. However, please be aware of the service fees.

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