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Bank statements are one of the most crucial forms of your transaction records. Long gone are the days when transactions and purchases were recorded manually. Now everything has become digitalized. One of the best ways people record these transactions through bank statements is by using debit cards, and almost all stores these days offer card-facilitated payments.
If you have come across bank statements, you might have noticed “POS transactions.” What are POS transactions? What is POS debit? These are some questions that might intrigue you. This article provides you with almost all the essential information you need to know about POS systems.
What is POS in Bank Statements?
POS transactions are a part of bank statements, which stands for “Point of sale.” Point-of-sale transactions are made when a person uses their Visa Debit card, gift card, or credit card to purchase any goods or services at any outlet that offers card payments.
For POS transactions, whether online or offline, customers must enter the PIN on a keypad. POS transactions are immediately posted to your account. On your bank statement, a point-of-sale transaction shows the amount and the address; sometimes, it also shows the merchant’s name.
POS system allows transactions to be made with a tap or a swipe. All purchases at POS devices through a POS system are usually recorded as POS items on the statement. However, that might only sometimes be the case. POS system might be more complex than it is to use.
Retailers use a combination of software and devices to seal the transaction. It helps people to keep a record of transactions easily and digitally.
What is POS Debit?
“POS” or “POS Debit “might be used alternatively by some people, but it is not the case. Both are slightly different. A POS Debit or Point of sale debit comparatively refers to a transaction specifically made using a debit card or an ATM card. Thus, using a debit card plus the POS system makes it a debit. But there are only three major ways the POS debit can work.
- Through a POS device (only a swipe makes a debit card payment).
- Through an online POS system (online transaction done through an online gateway).
- By an ATM cash withdrawal (payments are made in cash after cash withdrawal at a cash point).
Both POS and POS debit transactions are PIN- authenticated through the automated machine. The consumer doesn’t need to enter the card information like in online transactions manually. What makes the use of POS debit transactions different?
The answer is that the POS Debit allows the direct and straight transfer of funds from the point of sale at the retail outlet from a consumer’s account to the merchant’s account for purchase using a debit card. It allows buyers to purchase goods quickly and easily and avoids delays in credit card purchases.
Difference between POS and Debit
POS and POS debit might be used alternatively, but they are comparatively different. Following are some of the key differences between both.
|POS Transaction||POS debit|
|A POS transaction is just a transaction in which a consumer buys goods using any type of payment card||A POS debit specifically refers to a transaction in which the form of payment is a debit card|
|POS transactions other than debit might be delayed||A debit card transaction is quick and easy|
|POS transactions are not as direct and straight transfer of funds||A POS debit is very direct and straight transfer of funds from customer’s account to merchant’s account|
|POS transactions using credit card transactions uses money from the credit card network||POS debit uses money connected directly to the user’s account|
How will POS help in Bank Statements?
Almost every person has come across bank statements once in their lifetime. A monthly statement shows all the transactions and the beginning and ending balances. POS transactions are labeled in the statement. How will POS help in bank statements?
- It keeps the record of all your transactions digitally easily without hassle in the form of bank statements.
- It helps customers to complete the transaction.
- The system protects you from safe from overdraft fees.
- On a bank statement, a POS transaction shows the amount and the address, and sometimes it also shows the merchant’s name.
- You can scan for POS transactions and check the activity of debit cards and instances of their usage.
- Suppose you notice any transaction which you do not authorize. You can quickly report to the bank.
- You can trace the transactions on the bank statement, so you have complete control over your transactions.
How do you reconcile a POS transaction?
POS data is extremely important to give you insights about your finances, but for that, you need to do POS reconciliation, but People often need to be more informed about this term.
It is a very important accounting task and compares the two sets of records to see if the figures match each other. It mainly confirms that the amount left in your account matches the amount spent or received.
POS reconciliation ensures that a consumer’s financial activity is recorded correctly and the amounts are accounted for correctly. By carrying out POS reconciliation, retail businesses achieve reliability and greater accuracy in their financial records.
Here are five steps for POS reconciliation
- Start by comparing your internal records with your bank statement
- Go through it thoroughly and identify transactions that you couldn’t cross reference
- Make sure to verify incoming funds on both records
- Contact your bank as fast as possible for any suspected errors
- Maintain a balanced set of books
Bank statements keep a record of all transactions under different labels. POS transactions and POS debit are one of these labels. POS transactions and debit are different based on the payment card mode, but both help in bank statements and record keeping.
Not only do they provide easy and quick transactions, but you can also trace your transactions and check the account activity. But in the case of retail businesses, make sure you do POS reconciliation for accurate and correct financial records.
From an expert point of view, POS banking and system has made life easier for almost every person. Completing a transaction with just a card swipe was a dream back in the day, but now it’s so common. POS banking helps you to keep a record of all transactions, whereas POS debit helps you to transfer funds easily, quickly, and directly.
Most users prefer this mode of transaction despite some risks because who doesn’t like convenience consumers have to make sure that they reconcile their POS data so that two sets of records match each other.
Hello! I’m Annan Bhadra, a financial specialist and passionate writer. I have always been captivated by finance and its potential to empower individuals and communities. My academic journey began with an O level from the British Council, where I studied Accounting and Commerce. I then pursued my A level, focusing on International Business, also at the British Council. My passion for understanding the global economy led me to East West University, where I earned a degree in Economics. These educational experiences gave me a strong foundation in the financial world and fueled my desire to help others navigate their financial lives.