What is the main function of a Point of Sale (POS) terminal?

The main function of a Point of Sale (POS) terminal is to process transactions made by credit or debit cards. POS terminals are integral components in retail settings and other environments where sales occur, allowing merchants to accept electronic payments securely and efficiently.

These terminals facilitate the transaction process by reading the payment information from the card, authorizing the transaction, and communicating with the payment processing network to confirm that the payment can be completed. This includes verifying funds availability and executing the transfer of funds from the customer's account to the merchant's account.

The other options reflect aspects that may be related to the overall retail experience or banking services, but they do not encapsulate the primary role of a POS terminal in the transaction process. For example, distributing debit cards to consumers is a service provided by banks or financial institutions, while tracking customer purchases is typically part of a broader customer relationship management system rather than the specific function of a POS terminal. Providing customer service to cardholders is also an important area but is generally handled by customer service representatives rather than a POS system itself. Hence, the central function of the POS terminal is focused on processing transactions.