Pos Integration

POS Integration

Overview

Point-of-sale integration connects your physical retail operations with your online store, enabling unified inventory visibility, centralized order management, and consistent customer profiles across channels. When a customer buys in-store, the online store must reflect the updated inventory immediately; when they return an online order in-store, the refund must flow back to the payment gateway. This skill covers connecting Square and Shopify POS to your commerce platform, synchronizing inventory in real time, and handling cross-channel returns.

When to Use This Skill

• When opening a physical retail location alongside an existing online store
• When inventory discrepancies between in-store and online are causing oversells
• When customers expect to return online purchases in-store (omnichannel returns)
• When franchised or multi-location retail needs unified inventory and reporting
• When building a custom kiosk or tablet-based POS application

Core Instructions

Step 1: Determine your platform and POS integration path

Step 2: Platform-specific POS setup

Shopify + Shopify POS

Shopify POS is the most seamless option for Shopify stores since inventory is managed in a single system:

1. Subscribe to Shopify POS Pro ($89/month or included in Shopify Plus):

   • Go to Point of Sale → Devices in your Shopify admin
   • Install the Shopify POS app on your iPad or iPhone
   • Connect a card reader (Shopify provides its own Tap & Chip reader)

2. Set up locations for each store:

   • Go to Settings → Locations and click Add location for each physical store
   • Assign inventory quantities per location — Shopify tracks stock at each location separately

3. Inventory automatically stays in sync:

   • A sale in the POS app immediately decrements inventory for that location
   • The online store can be configured to sell from multiple locations (go to Settings → Shipping and delivery → Local pickup to configure)

4. Configure click-and-collect (Buy Online, Pick Up In Store):

   • Go to Settings → Shipping and delivery → Local pickup and enable it for each location
   • Customers select their pickup location at checkout; the order appears in that store's POS app under Pickups

WooCommerce + Square

Connect Square to WooCommerce:

1. Install the WooCommerce Square plugin (free, developed by Square) from wordpress.org
2. Go to WooCommerce → Settings → Integrations → Square and click Connect with Square
3. Log in to your Square account and select your Square business location
4. In the Square plugin settings, enable Sync inventory (bidirectional)
5. Run the initial sync: go to WooCommerce → System Status → Tools → Sync Products with Square

How inventory sync works:

• When you sell a product in your Square POS, WooCommerce stock decrements automatically (within minutes via webhook)
• When WooCommerce receives an online order, Square stock decrements
• Go to WooCommerce → Square → Sync Log to see sync history and troubleshoot discrepancies

Handle in-store returns of online orders:

• Returns initiated in WooCommerce admin automatically sync to Square if the original payment used Square
• For Stripe-paid online orders returned in-store: process the refund in Square and reconcile in WooCommerce manually, or build a custom refund endpoint (see Custom section below)

BigCommerce + Square

1. Go to Channel Manager in your BigCommerce admin and click + Create New Channel
2. Select Square from the channel list
3. Authorize BigCommerce to connect to your Square account
4. Configure inventory sync settings — BigCommerce and Square will sync stock levels bidirectionally
5. Square POS orders can be imported into BigCommerce for unified reporting

Custom / Headless + Square API

Initialize the Square client:

// lib/pos/square-client.ts
import { Client, Environment } from 'square';

export const squareClient = new Client({
  accessToken: process.env.SQUARE_ACCESS_TOKEN!,
  environment: process.env.NODE_ENV === 'production' ? Environment.Production : Environment.Sandbox,
});

export const { catalogApi, inventoryApi, ordersApi, paymentsApi, locationsApi } = squareClient;

Handle Square inventory webhooks (in-store sale → update online store):

// POST /api/webhooks/square
import { createHmac } from 'node:crypto';

export async function POST(req: NextRequest) {
  const rawBody = Buffer.from(await req.arrayBuffer());
  const signature = req.headers.get('x-square-hmacsha256-signature') ?? '';

  // Square HMAC includes the full notification URL in the signature
  const notificationUrl = `${process.env.APP_URL}/api/webhooks/square`;
  const expected = createHmac('sha256', process.env.SQUARE_WEBHOOK_SECRET!)
    .update(notificationUrl + rawBody.toString('utf8'))
    .digest('base64');

  if (signature !== expected) {
    return NextResponse.json({ error: 'Invalid signature' }, { status: 401 });
  }

  const event = JSON.parse(rawBody.toString('utf8'));

  if (event.type === 'inventory.count.updated') {
    const counts = event.data.object.inventory_counts ?? [];
    for (const count of counts) {
      const variant = await db.variants.findBySquareCatalogId(count.catalog_object_id);
      if (!variant) continue;

      await db.inventory.updateLocationQuantity(variant.sku, count.location_id, parseInt(count.quantity));
      const total = await db.inventory.getTotalAvailable(variant.sku);
      await redis.setex(`inventory:${variant.productId}`, 3600, String(total));
    }
  }

  return NextResponse.json({ accepted: true });
}

Handle cross-channel returns (online order returned in-store):

// lib/pos/returns.ts
export async function processInStoreReturn(params: {
  orderId: string;
  lineItems: Array<{ lineItemId: string; quantity: number }>;
  locationId: string;
}) {
  const { orderId, lineItems, locationId } = params;
  const order = await db.orders.findById(orderId);
  if (!order) throw new Error(`Order ${orderId} not found`);

  // Calculate refund amount
  const refundAmount = lineItems.reduce((sum, item) => {
    const line = order.lineItems.find(l => l.id === item.lineItemId)!;
    return sum + (line.unitPriceCents * item.quantity);
  }, 0);

  // Issue refund via original payment gateway
  if (order.paymentGateway === 'stripe') {
    await stripe.refunds.create({
      payment_intent: order.stripePaymentIntentId,
      amount: refundAmount,
      metadata: { orderId, locationId, channel: 'in_store_return' },
    });
  } else if (order.paymentGateway === 'square') {
    await paymentsApi.createPaymentRefund({
      idempotencyKey: `return_${orderId}_${Date.now()}`,
      paymentId: order.squarePaymentId!,
      amountMoney: { amount: BigInt(refundAmount), currency: 'USD' },
    });
  }

  // Restock returned items at the return location
  for (const item of lineItems) {
    const line = order.lineItems.find(l => l.id === item.lineItemId)!;
    await db.inventory.incrementLocationQuantity(line.sku, locationId, item.quantity);
  }

  await db.orders.addReturn({ orderId, lineItems, processedAtLocation: locationId, processedAt: new Date() });
}

Sync your product catalog to Square (required before Square can track inventory):

export async function syncProductToSquare(product: Product) {
  const { result } = await catalogApi.batchUpsertCatalogObjects({
    idempotencyKey: `sync_${product.sku}_${Date.now()}`,
    batches: [{
      objects: [{
        type: 'ITEM',
        id: `#item_${product.sku}`,
        itemData: {
          name: product.name,
          variations: product.variants.map(variant => ({
            type: 'ITEM_VARIATION' as const,
            id: `#var_${variant.sku}`,
            itemVariationData: {
              itemId: `#item_${product.sku}`,
              name: variant.name,
              sku: variant.sku,
              pricingType: 'FIXED_PRICING',
              priceMoney: { amount: BigInt(Math.round(variant.price * 100)), currency: 'USD' },
              trackInventory: true,
            },
          })),
        },
      }],
    }],
  });

  // Store Square-assigned IDs for future inventory updates
  for (const mapping of result.idMappings ?? []) {
    if (mapping.clientObjectId?.startsWith('#var_')) {
      const sku = mapping.clientObjectId.replace('#var_', '');
      await db.variants.update(sku, { squareCatalogVariationId: mapping.objectId });
    }
  }
}

Best Practices

• For Shopify merchants, use Shopify POS — it shares a single inventory system with your online store; no sync lag, no duplicate records, and unified reporting out of the box
• Reserve a safety stock buffer for the online store — never expose 100% of physical inventory online; reserve 10–20% as a buffer for in-store sales that happen faster than inventory sync can propagate
• Implement location-aware inventory — track stock per physical location (store), not just as a global total; this enables accurate click-and-collect availability
• Monitor sync lag — measure the time between a POS sale and the inventory update appearing online; alert when lag exceeds 5 minutes
• Build a manual reconciliation tool — inventory discrepancies happen; store managers need a UI to compare POS inventory counts with your system and trigger a manual sync

Common Pitfalls

Related Skills

• @marketplace-connectors
• @webhook-architecture
• @flash-sale-scaling
• @monitoring-alerting-commerce