POS Terminal: What It Is and How It Work

According to data from 2024, the share of cashless payments using bank cards in Kazakhstan increased to 89%, and the volume of such transactions exceeded 962.7 trillion tenge.

Today, almost any place accepts card payments — it’s convenient, fast, and safe for the customer, and profitable for the seller. The ability to accept cashless payments increases business customer focus, helps expand the customer base, and boosts revenue. To accept card payments, a POS terminal is required (POS stands for Point of Sale).

What Is a POS Terminal?

Simply put, it’s a device that allows customers to pay using a bank card, smartphone, or smartwatch. Clients can make payments quickly without waiting for change, and sellers no longer have to deal with cash-related issues, such as secure storage, transport to the bank, or cash collection.

According to the legislation of Kazakhstan, payment terminals are not required to be registered with the state revenue authorities. To use acquiring services (which is the banking service for accepting payments via terminal), it is only necessary to sign an agreement with a bank.

How does a POS terminal work?

Suppose your customer wants to pay using a card through a POS terminal:

1. The seller scans the product’s barcode or enters the purchase amount manually. The customer taps their card on the terminal screen — most devices support contactless payment. The customer doesn’t need to hand over the card to the seller, which increases payment security.
2. The terminal sends the card information to the bank. The bank checks whether the card has sufficient funds and is not blocked. If everything is in order, the bank approves the transaction and the money is debited from the customer’s account. If something is wrong (e.g., insufficient funds), the terminal will decline the transaction.
3. A receipt confirms the completion of the transaction. It is issued in two copies: one for the customer and one for the seller. Some terminals allow sending an electronic copy by email instead of printing.

The amount spent on the purchase is temporarily blocked — after a short period (usually the next business day), it is credited to the seller’s account.

Types of POS Terminals

Depending on the payment method and functionality, the following types of POS terminals are distinguished:

• Stationary (checkout) terminal. This is equipment used to set up a cashier’s workstation — commonly found in supermarkets, pharmacies, restaurants, cafeterias, etc.
• Mini POS terminal. Also known as a cash register module. It is a compact, portable device that connects to a smartphone. It’s ideal for businesses that require mobility, such as courier services, food or flower delivery companies. It is also used by small coffee shops, stores, service stations, and taxis.
• Mobile. This is not a physical device but a mobile app that needs to be installed on a smartphone. It accepts payments via QR code. This solution is suitable, for example, for couriers, taxi services, or repair technicians who provide services at the customer’s home.

Who is required to use a POS terminal?

According to the Resolution dated July 1, 2021, businesses involved in the following types of activities are required to use a POS terminal:

• Wholesale or retail trade, including the sale of motorcycles and cars, as well as maintenance services.
• Hotel services.
• Restaurants and other establishments serving food and beverages.
• Sale of train and airline tickets.
• Tour operator services. The only exception is for travel agents, who are not required to use a terminal.
• Insurance services.
• Healthcare services.
• Fitness clubs and others.

What are the consequences of not having a payment terminal?

If your company is legally required to use a terminal but fails to do so, you may face fines. These penalties are regulated by the Code of Administrative Offenses.

If the violation is identified for the first time, the penalty for not having a POS terminal is a warning. If you fail to resolve the issue within a year and the authorities detect the violation again, you will have to pay a fine. The amount of the fine depends on the size of the business. For small businesses, the fine is 40 MCI (in 2025, this equals 157,280 KZT). Medium-sized businesses will pay 60 MCI, or 235,920 KZT. For large companies, the fine reaches 80 MCI (equivalent to 314,560 KZT).

You can connect a POS terminal at Bank CenterCredit as part of settlement and cash services for individual entrepreneurs and legal entities. Our advantages include a low commission and issuance of a business card free of charge.