A POS system, or point-of-sale system, is a set of devices, software, and payment services that merchants use to make sales in person. It is the hardware and software that enables businesses to accept payments from customers and keep track of sales. A POS system calculates a customers purchase amount, adds sales tax, processes the payment, and logs the time and date of the transaction. It also generates a paper and/or digital receipt as well as adjusts inventory records. POS systems are the modern version of cash registers. The three main components of a POS system are hardware, software, and payment processing services. POS software is like a command center that allows businesses to find items in their library and ring up sales. More robust point-of-sale solutions also feature helpful tools such as sales reporting, customer engagement software, inventory management, and more. POS systems also take care of routing funds to a businesss bank account after each sale. Some POS solutions include payment processing, which is one of the core functions of a POS system. POS systems can be used in a physical storefront, online, or both. They can be accessed on an internet-enabled device, such as a tablet or phone, and can be entirely digital. POS systems are increasingly interactive, particularly in the hospitality industry, and allow customers to place orders and reservations and pay bills electronically.