In this article, we’re looking at the “POS” meaning in banking. But, instead of keeping you waiting, POS refers to completing transactions at a “Point of Sale” terminal.
We’ll dig into the specifics and answer a few of the most common questions we receive about POS transactions below.
This is part of our free series on banking in India, covering topics like opening an NRI bank account, which you can access here.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
POS Meaning in Banking
The meaning of POS in banking is “Point of Sale”. More specifically it refers to a transaction that has been completed at a Point of Sale (POS) terminal at a physical retail location.
Being able to complete a POS transaction is important in the world of payment processing. It allows businesses to quickly process customer payments via both debit cards and credit cards.
That said, in order to obtain a POS terminal and process payments like this, businesses need to obtain a merchant account with a bank that supports card payment authorization.
After opening a merchant account, businesses will receive a payment terminal and will be able to start directly processing customer payments.
Alternatively, many businesses opt for a different type of financial services provider, which is an online payment gateway or payment processor. While only a small number of these payment gateways offer a physical payment processing option, most of them offer a streamlined way to process payments online while also integrating advanced fraud prevention.
Frequently Asked Questions
Below are a few of the most common questions we receive from people looking into the meaning of POS in banking. If you have further questions you would like to ask our team, don’t hesitate to get in touch.
What Does POS Mean on a Bank Account?
When it comes to a bank account statement, “POS” will mean that a transaction has been completed via a Point of Sale (POS) terminal. In most cases, POS only appears on a bank statement prior to the transaction being fully processed. After the transaction is fully processed, the information from the merchant will be fully available on the bank statement. On the other hand, if the information does not appear on the card, you can also contact the card issuer and ask them to verify the details.
What Is a POS Transaction?
A POS transaction is a transaction taking place at a Point of Sale (POS) terminal. POS transactions can be completed with a debit card or a credit card. But in most cases, they require the individual cardholder to be present in order to insert, tap, or confirm the card. After a transaction starts, several intermediaries and financial institutions confirm the transaction details and verify the security information about the card.
What Is POS Limit In Banking?
The POS limit in the world of banking refers to the transaction limit that a card provider has placed on the transactions that a cardholder can carry out at a Point of Sale (POS) terminal. In other words, the POS limit stops transactions that are above a certain limit from moving forward. That said, the POS limit can vary, depending on the credit history of the client, the type of card, and even the category of the retailer or merchant.
Do You Want Help Opening Bank Accounts?
If so, you can get access to GlobalBanks IQ in just a few clicks.
GlobalBanks IQ is our flagship international account opening solution. It gives you instant access to the…
+ Expert insights on which banks to choose & why
+ Step-by-step reports to open accounts in the best banking hubs
+ GlobalBanks international bank database & detailed bank profiles
+ Tried & tested banks for high-risk, offshore, & non-resident clients
+ Plus, get YOUR most pressing bank account opening questions answered by our team!
And “yes!” GlobalBanks IQ helps foreigners and non-resident individuals open bank accounts.
In fact, GlobalBanks IQ even helps non-resident, foreign & offshore entities open bank accounts.
Use the link in our menu above to learn more about GlobalBanks IQ. Or, contact us directly with any questions!
