A point of sale terminal (POS terminal) is an electronic device used to process card payments at retail locations. Its major participants are as under:
- Acquiring Bank : The Bank which has installed the POS terminal at the merchant location.
- Card Network : RuPay/Visa/MasterCard, etc. (Transaction routing and settling agency)
- Customer : Card Holder
- Issuing Bank : The Bank which has issued the Card to the customer.
Type of Transactions:
- ON-US Transaction : Where the issuing and acquiring bank are the same entity
- OFF-US Transaction : Where the issuing and acquiring bank are different entities
