diff --git a/pos/src/lib/customer-api.ts b/pos/src/lib/customer-api.ts
index a168899..d578c38 100644
--- a/pos/src/lib/customer-api.ts
+++ b/pos/src/lib/customer-api.ts
@@ -1,5 +1,6 @@
 import { DOCTYPES } from '../data/doctypes';
 import { db, call } from './frappe-sdk';
+import { handleApiError } from './error-handler';
 
 export interface Customer {
   name: string;
@@ -103,6 +104,7 @@ export async function searchCustomers(search: string, limit = 5) {
     return res.message || [];
   } catch (error) {
     console.error('Customer search error:', error);
-    throw error;
+    const errorMessage = handleApiError(error);
+    throw new Error(errorMessage);
   }
 }
\ No newline at end of file
diff --git a/pos/src/lib/error-handler.ts b/pos/src/lib/error-handler.ts
new file mode 100644
index 0000000..e307a72
--- /dev/null
+++ b/pos/src/lib/error-handler.ts
@@ -0,0 +1,27 @@
+export interface ApiError {
+    message?: string;
+    exc_type?: string;
+    _server_messages?: string;
+}
+
+export const handleApiError = (error: any): string => {
+    console.error("API Error:", error);
+    if (error?.response?.data?._server_messages) {
+        try {
+            const serverMessages = JSON.parse(error.response.data._server_messages);
+            const parsedMessage = JSON.parse(serverMessages[0]);
+            return parsedMessage.message || "Something went wrong";
+        } catch {
+            return "Server error occurred";
+        }
+    }
+
+    if (error?.response?.data?.message) {
+        return error.response.data.message;
+    }
+
+    if (error?.message) {
+        return error.message;
+    }
+    return "Unexpected error occurred. Please try again.";
+};
diff --git a/pos/src/lib/payment-api.ts b/pos/src/lib/payment-api.ts
index 4317146..365672b 100644
--- a/pos/src/lib/payment-api.ts
+++ b/pos/src/lib/payment-api.ts
@@ -1,4 +1,5 @@
 import { call } from './frappe-sdk';
+import { handleApiError } from './error-handler';
 
 interface PaymentMode {
   mode_of_payment: string;
@@ -19,14 +20,13 @@ export const getPaymentModes = async (): Promise<string[]> => {
   try {
     const response = await call.get<PaymentModeResponse>("ury.ury_pos.api.getModeOfPayment");
 
-    const paymentModes = response.message.map((mode:PaymentMode) => mode.mode_of_payment);
-    
-    // Cache in session storage
+    const paymentModes = response.message.map((mode: PaymentMode) => mode.mode_of_payment);
     sessionStorage.setItem('payment_modes', JSON.stringify(paymentModes));
-    
+
     return paymentModes;
   } catch (error) {
     console.error('Failed to fetch payment modes:', error);
-    throw error;
+    const errorMessage = handleApiError(error);
+    throw new Error(errorMessage);
   }
 }; 
\ No newline at end of file