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For the benefit of those who are not familiar with what Point of sales (POS) terminal is all about, this will really help.
Just like a stand lone computer at a location, Point of sales terminals are meant to provide an end users platform through which transactions can be carried out. Transaction can range from Electronic fund Transfer (EFT), time and attendance monitoring, Banking on POS etc depending on what problem a solution is developed to sovle.
You must have notice small machines kept at business locations and attendants collecting customer’s Debit (ATM/POS/WEB) card, swiping it over the POS machine, then all of a sudden the customer leaves the place with his/her purchased goods without dropping any cash.
The application running on the POS terminal in this case is a general purpose EFT debit application. What happened during the process is that the POS terminal gets customer's details, uses it to deduct money from the customer's account in the customer's bank and credit this into the merchant’s account in the merchant's bank in the case where a customer is making a purchase and for account balance inquiry, the customer's bank is queried for customer’s account details.
This may not be as simple as explained here as the POS itself is a dump end and has to channel its massage to a listening gateway which in turn has to communicate to a switch for authorization. Anyway, welcome to our electronic world where focus is targeted at creating a cashless society.