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POS and ePOS explained: a simple guide
Choosing the right payment system matters. It keeps things running smoothly, helps you serve customers quickly, and supports your business as it grows. But with so much jargon around, it can be hard to know where to start. If you’re asking “What is POS?”, this guide breaks it down – simply and clearly.
Read time: 3 mins Added: 16/02/26
What does POS mean?
POS stands for Point of Sale. It’s where your customer completes a purchase and you take the payment – and the system you use to do that. For many small businesses, a POS setup is a combination of:
- A card reader (also called a terminal, and sometimes called a “PDQ machine”)
- Optional hardware like a till, countertop screen, receipt printer or barcode scanner
- Simple software to help you take payments and keep basic records
What a POS setup can look like in different retail settings
- Small café: a fixed or tablet style screen, till, simple menu buttons, card terminal, and a receipt printer
- Retail shop: fixed screen or tablet, till, barcode scanner, card terminal, and printed receipts
- Mobile/on-the-go (e.g., market stall, mobile hairdresser, delivery service): smartphone, small portable card reader, and a POS app (often called mPOS – mobile point of sale)
POS vs ePOS – what’s the difference?
People sometimes use these terms interchangeably. It’s more helpful to focus on what you need the system to do. Here’s a simple explanation:
POS — the basics for taking payments
- Lets you take card and contactless payments
- Helps you get paid and record sales
- Suits smaller merchants who want a straightforward way to take payments
ePOS — payments, plus tools to run the business
- A digital (often cloud-based) system that stores more information and processes it quickly
- Helps you track and order stock, see customer buying patterns, and run loyalty/offers
- Can connect with accountancy software to streamline reconciliation and bookkeeping
Integrated vs non-integrated ePOS
Here’s an easy way to think about it: manual entry vs automatic.
Non-integrated ePOS (most basic ePOS setups)
- Your till and card machine work separately
- You enter the sale on the till, then type the amount into the card machine
- Simple, lower cost, ideal for very small businesses or those just starting out
Integrated ePOS
- Your till and card machine “talk to each other” – meaning, the till sends the amount to the card machine automatically
- How it works: when you put a sale through the till, the amount is sent to the terminal, the payment is taken, and the sale is recorded/closed automatically
- Why this helps: fewer keying errors, faster service, and easier reconciliation and reporting
When to move from POS to ePOS
Most growing businesses eventually choose an ePOS system because it helps to:
- Reduce manual admin
- Improve accuracy
- Offer customers a smoother experience
If you’re unsure, speak with a payment provider about how you sell today – and where your business is heading – to work out the best fit.
What does it cost?
Costs vary based on the hardware and software you choose, but typically include:
- Hardware (e.g., card terminal, fixed screen) – usually a one-off amount
- Software fees – depending on the level of ePOS functionality
- Optional subscriptions if you link to other apps (e.g., accounting or loyalty)
- Transaction fees you’d usually pay for card payments still apply
The bottom line?
A POS system helps you take payments and keep basic records. As your business grows, you may want the extra control and insight that ePOS – especially integrated ePOS – can provide. A short conversation with a payment provider can help you choose what’s right for your business.