What is the difference between ATM and POS?

What is the difference between ATM and POS?

ATM (Automated Teller Machine) and POS (Point of Sale) are both financial transaction systems, but they serve different purposes:

• ATM (Automated Teller Machine): is a machine that allows customers to perform basic banking transactions without the need for a human teller. Users can withdraw cash, check their account balances, and transfer funds using an ATM. ATMs are usually located in bank branches, retail stores, and other public places.
• POS (Point of Sale): is a terminal or device used in retail stores and restaurants to process payments made by customers. When a customer makes a purchase and uses a debit or credit card, the payment is processed through the POS system. It allows merchants to accept various forms of payment and helps in keeping track of sales and inventory.

While both ATM and POS involve financial transactions, ATM is primarily used for accessing cash and basic banking services, while POS is used for processing retail transactions at the point of sale.

Learn more:

1. Automated Teller Machine (ATM) Definition | Investopedia
2. Point of Sale (POS) - Overview, How It Works, Types
3. ATM Card vs. Debit Card: The Difference | The Balance