A POS (Point of Sale) system is software processing retail transactions. Customer picks item, you scan it, system shows price, add to cart, process payment (cash, card, mobile), print receipt. Behind the scenes: inventory decrements, sales are logged, customer data is recorded, reports are generated. POS systems range from simple (Square on an iPad) to complex (enterprise systems managing 1000+ locations). All share core functions: item scanning, cart management, payment processing, receipt printing, inventory tracking, reporting.