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Updated Sep 04, 2024

The Best POS Systems of 2024

Modern POS systems like Clover allow mobile sales, enable fast credit card processing and even facilitate loyalty programs.

Quinn Springett Headshot
Written By: Quinn SpringettSenior Analyst & Expert on Business Operations
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A business.com editor verified this analysis to ensure it meets our standards for accuracy, expertise and integrity.
Chad Brooks
Managing Editor & Expert on Business Ownership

The best POS systems on the market, such as Clover and Square, help retailers, restaurants, hospitality businesses and other enterprises launch and maintain loyalty programs, schedule worker shifts, track stock levels, and streamline operations through integrations with other business software. Some of the top solutions we found also have e-commerce abilities and all boast strong analytics tools for monitoring performance and making sales forecasts. Simply put, with the right POS system, a business can drive sales and growth. After careful research and testing, our top recommendations hit all these beats and more.

Best All-in-One POS System
Clover POS System
Clover logo
  • Base price: $14.95 per month
  • 600+ integrations
  • Must use native payment processor
USALinks to Clover POS System
Visit Site
  • Base price: $14.95 per month
  • 600+ integrations
  • Must use native payment processor
Best for Online Restaurant Ordering
Toast
Toast logo
  • Base price: $0
  • 80+ integrations
  • Must use native payment processor
USALinks to Toast
Visit Site
  • Base price: $0
  • 80+ integrations
  • Must use native payment processor
Best for Retail
Lightspeed
Lightspeed logo
  • Base price: $69 per month 
  • 250+ integrations
  • Allows 3rd-party payment processor
USALinks to Lightspeed
Visit Site
  • Base price: $69 per month 
  • 250+ integrations
  • Allows 3rd-party payment processor
Best for Efficiency
CAKE
Cake logo
  • Base price: $69 per month
  • 18+ integrations
  • Allows 3rd-party payment processor
USALinks to CAKE
Visit Site
  • Base price: $69 per month
  • 18+ integrations
  • Allows 3rd-party payment processor
Best for Scalability
Shopify POS
Shopify logo
  • Base price: $5 per month
  • 8,000+ integrations
  • Allows 3rd-party payment processor
  • Base price: $5 per month
  • 8,000+ integrations
  • Allows 3rd-party payment processor
Table Of Contents Icon

Table of Contents

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At business.com, our team of technology experts has analyzed hundreds of tools and services designed to improve essential business operations, from POS systems to GPS fleet management services to remote PC access software, and we use these experiences to provide business owners with actionable guides and industry insights. Every playbook and explainer is infused with advice from real IT consultants, implementation experts, security specialists, software developers and more.

Our rigorous product review process involves in-depth industry research, vendor interviews, hands-on testing and service comparisons. Each analysis — whether for a business phone system, CRM platform, call center software or website builder — is independently verified by a business.com editor to ensure our recommendations are free of bias and errors. Learn more about our editorial process.

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How We Decided

We searched for the best point-of-sale (POS) systems featuring cutting-edge technology that would allow businesses to process sales at terminals and kiosks and with mobile devices and e-commerce sites. We looked for solutions that accepted multiple payment methods...

MoreMore

We searched for the best point-of-sale (POS) systems featuring cutting-edge technology that would allow businesses to process sales at terminals and kiosks and with mobile devices and e-commerce sites. We looked for solutions that accepted multiple payment methods and studied how challenging each program was to navigate on both the business-facing and customer-facing sides. We considered whether the vendor allowed third-party credit card processing, examined the quality of the hardware provided and tested tools like inventory management. Finally, we compared pricing and plans and whether attractive features like loyalty programs and gift cards were included or available as add-on services.

112

evaluated

14

researched

7

chosen

We searched for the best point-of-sale (POS) systems featuring cutting-edge technology that would allow businesses to process sales at terminals and kiosks and with mobile devices and e-commerce sites. We looked for solutions that accepted multiple payment methods and studied how challenging each program was to navigate on both the business-facing and customer-facing sides. We considered whether the vendor allowed third-party credit card processing, examined the quality of the hardware provided and tested tools like inventory management. Finally, we compared pricing and plans and whether attractive features like loyalty programs and gift cards were included or available as add-on services.

112

evaluated

14

researched

7

chosen

In today’s world, a point-of-sale (POS) system needs to do more than just ring up sales. Traditional cash registers just don’t cut it. Instead, to make the most of sales and further customer relationships, businesses must use a multifaceted POS system capable of not just payment processing but also inventory management, customer management, employee management, mobile accessibility and more.

Compare Our Best Picks

BDC Ribbon
Our Top Picks for 2024
Clover POS System
Lightspeed
Shopify POS
TouchBistro
Square POS
Rating (Out of 10)9.79.59.49.59.59.49.1
Best use case

All-in-one

Online restaurant ordering

Retail

Efficiency

Scalability

Restaurant

Startups

Industries

Restaurants, retail, service businesses, e-commerce

Restaurants

Retail, restaurants, golf

Restaurants

Retail, hospitality, e-commerce

Restaurants

Restaurants, retail, appointment booking

Starting price

$14.95 per month

Free

$69 per month

$69 per month

$5 per month

$69 per month

Free

Free trial

90 days

None

14 days

None

3 days

14 days

30 days

Contract length

Monthly and annual plans

Multiyear plans

Monthly, annual and multiyear plans

Monthly plans

Monthly, yearly plans and multiyear plans

Monthly plans

Monthly plans

POS hardware

Clover Station Solo, Clover Station Duo, Clover Flex, Clover Mini, Clover Go (accessories available)

Toast Flex, Toast Go 2, Toast Flex for Guest, Toast Flex for Kitchen, kiosk (accessories available)

iPad POS kit, desktop POS kit, receipt printers, cash drawers, Bluetooth scanners (accessories available)

Terminal, customer touch display, card reader, kiosk (accessories available)

Countertop kit, POS Go, card reader

iPad, kitchen display system, customer-facing display

Register, terminal, stand, card readers (accessories available)

Compatible with third-party payment processors?

No

No

Yes

Yes

Yes

Yes

No

Integrations

600+

80+

250+

18+

8,000+

25+

200+

Customer support

Phone, email, webchat

Phone, email, webchat

Phone, email

Phone, online ticket, email

Phone, email, webchat

Phone, email, webchat

Phone, email, webchat, social media

Review Link
Scroll Table

Our Reviews

Clover logo
  • Base Price: $14.95 per month
  • Top Features: Virtual terminal, automatic inventory sync, mobile app
  • Trial Period: Yes, 90 days
Editor's Rating: 9.7/10
Visit Site

Why Clover is Best for All-in-One

Clover is the ideal solution for businesses looking for a powerful all-in-one system that combines the best of point-of-sale and credit card processing in one platform. Clover offers industry-specific POS plans, fast in-house payment processing and additional services like Clover Rapid Deposit and Clover Capital. We love that Clover has a variety of proprietary hardware options, or you can access a virtual terminal to accept payments without hardware. You can also enjoy invoicing features, save payments and set up recurring payments as needed.

We were impressed with Clover’s robust software. Clover’s software gives you access to several POS functions, such as automatic inventory sync, pickup and delivery orders, customer contact information, marketing preference collection, options to accept donations, and customer rewards and promos. We like how you can manage employees, track sales patterns and trends, and integrate with platforms like BigCommerce, QuickBooks and Gusto. Clover is secured with end-to-end encryption, integrated EMV chip sensors and fingerprint logins.

Clover Pricing

Plan Price Features
Full-service restaurant Starter $165 per month Table mapping, open tabs, bill splitting, item and order-level discounts, contactless dining, tipping, online menu, no-fee online ordering, pickup and delivery, item and category management, stock tracking, third-party menu integrations, real-time sales tracking, sales report, cost tracking by item, shift management, Station Solo device, cash drawer, receipt printer
Full-service restaurant Standard $220 per month Everything in the Starter plan, plus tableside ordering, tap card payments, mobile wallet payments, Flex device
Full-service restaurant Advanced $325 per month Everything in the Standard plan, plus Station Duo device
Quick-service restaurant Starter $105 per month Contactless dining, item and order-level discounts, online menu, no-fee online ordering, pickup and delivery, item and category management, stock tracking, third-party menu integrations, real-time sales tracking, sales reports, cost tracking by item, shift management, Mini touchscreen device
Quick-service restaurant Standard  $145 per month Everything in the Starter plan, plus customer database, promotions, loyalty program, gift cards; Station Duo device instead of Mini touchscreen
Quick-service restaurant Advanced $200 per month Everything in the Standard plan, plus line busting and Flex device
Retail Starter $60 per month Item and category management, stock tracking, itemized order creation, item and order-level discounts, real-time sales tracking, detailed sales reports, tax reporting, dashboard for online and offline sales, existing online store integration, customer database, promotions, loyalty program, gift cards, shift management, Mini touchscreen device
Retail Standard $135 per month Everything in the Starter plan, plus item variants, itemized returns and exchanges, scale integration, cost tracking by item; Station Duo device instead of Mini touchscreen
Retail Advanced $190 per month Everything in the Standard plan, plus Flex device
Professional services Starter  $14.95 per month No-hardware transactions, email invoicing, online payments, automated recurring payments, automated client notifications and receipts, invoice status tracking, client database, real-time sales tracking, detailed sales reports, tax reporting, item and category management, stock tracking, itemized order creation, item or order-level discounts, shift management
Professional services Standard $50 per month Everything in the Starter plan, plus tap card payments, mobile wallet payments, gift cards, promotions, loyalty program, Flex device
Professional services Advanced $125 per month Everything in the Standard plan (except tap cards and mobile wallets), plus item variants, itemized returns and exchanges, cost tracking, Station Solo device
Personal services Starter $50 per month Customer database, promotions, loyalty program, gift cards, real-time sales tracking, detailed sales reports, tax reporting, item and category management, stock tracking, itemized order creation, item or order-level discounts, shift management, Flex device
Personal services Standard $95 per month Everything in the Starter plan, plus item variants, itemized returns and exchanges, scale integration, cost tracking; Mini touchscreen instead of Flex device
Personal services Advanced $135 per month Everything in the Standard plan, plus Station Duo device instead of Mini touchscreen
Home & field services Starter $14.95 per month No-hardware transactions, email invoicing, online payments, automated recurring payments, automated client notifications and receipts, invoice status tracking, real-time sales tracking, detailed sales reports, tax reporting, client database, item and category management, stock tracking, itemized order creation, item or order-level discounts, shift management
Home & field services Standard $49 per month Everything in the Starter plan, plus tap card payments, digital wallets, gift cards, Go device
Home & field services Advanced $50 per month Everything in the Standard plan, plus item variants, itemized returns and exchanges; Flex device instead of Go

Payment Processing Fees

  • Starter: 3.5% + $0.10 for card-not-present transactions; 2.6% + $0.10 for card-present transactions
  • Standard & Advanced: 3.5% + $0.10 for card-not-present transactions; 2.3% + $0.10 for card-present transactions

Clover Advantages

  • Clover’s industry-specific pricing plans give businesses flexibility.
  • The POS software and hardware are so well regarded that some rival credit card processing companies and POS vendors like Payment Depot and Brilliant sell them.
  • Recent security updates include reCAPTCHA to combat fraud attempts in Clover’s hosted checkout.

Clover Disadvantages

  • Clover is not compatible with third-party payment processing.
  • The hardware is more expensive than some competitors charge.
  • You may have a long wait when you call customer service.

Trustpilot Score: Clover has a TrustScore of 3.6 stars out of 5 based on nearly 1,500 reviews. One user said, “Clover POS is easy to use and has reasonable fees. I am glad I replaced another brand with Clover a few years ago. The Dashboard on the website is great and customer service has been top notch.”

CHECK OUT OUR FULL CLOVER REVIEW

Toast logo
  • Base Price: $0
  • Top Features: Online ordering, Mobile Order & Pay, payroll integration
  • Trial Period: None
Editor's Rating: 9.5/10
Visit Site

Why Toast is Best for Online Restaurant Ordering

Toast is one of the best restaurant-focused POS systems serving most restaurant types, like fine dining, casual dining, fast casual, bars and nightclubs, and cafes and bakeries. We were impressed with its online ordering capabilities for restaurants, including order scheduling, curbside pickup, contactless delivery, dynamic throttling, an on-demand delivery driver fleet and the Toast TakeOut app. Toast’s online ordering is entirely commission-free, helping you save money while supporting multiple online orders. When testing the platform, we especially liked Mobile Order & Pay, a mobile solution for dine-in guests to order and pay from their phones.

We also like Toast’s partnership with Google, which gives diners the ability to order directly from the search engine. The Order with Google integration provides a better customer experience and offers another sales channel for business owners. If you need help with your Toast software, you can access phone, email and chat support 24/7.

Toast Pricing

Plan Price Features
Starter Kit $0 Restaurant-grade hardware, flat-rate payment processing, table and order management, digital menus, mobile payments, guestbook, employee timekeeping, basic scheduling, hardware configuration for one terminal
Point of Sale $69 per month Everything in the Starter Kit plan, plus custom hardware configuration and wider selection of add-ons
Build Your Own Custom quote Choose your own features

Payment Processing Fees

  • Custom rates

Toast Advantages

  • Toast has a partnership with Google, allowing customers to order directly from the search engine.
  • The Toast Go handheld device and Toast Flex register are both designed with restaurants in mind.
  • Customer support is available 24/7.

Toast Disadvantages

  • Toast doesn’t advertise hardware costs on its website.
  • You must use the built-in payment processing.
  • The system is only compatible with Android devices.

Trustpilot Score: With more than 1,000 reviews, Toast has a TrustScore of 3.4 stars out of five. “I absolutely love Toast! The integrations, it’s user friendly and my staff and customers love the capabilities as well. I recommend Toast to all of my business owner friends,” read one of the testimonials.

CHECK OUT OUR FULL TOAST REVIEW

Lightspeed logo
  • Base Price: $69 per month
  • Top Features: Stock alerts, extensive reports, employee time tracking
  • Trial Period: Yes, 14 days
Editor's Rating: 9.4/10
Visit Site

Why Lightspeed is Best for Retail

Lightspeed offers multiple industry-specific POS plans for retail stores, restaurants and golf businesses, but we especially like its retail options. Each plan includes one free terminal and the ability to accept payments with Lightspeed Payments or a third-party payment processor. The features in each plan are tiered, but even the low and midlevel plans have robust retail POS capabilities, payment processing and functions for selling online and in-store. When testing out the software, we liked how you could create a personalized home dashboard, and the e-commerce options include several mobile-responsive and customizable templates. [See more of the best retail POS systems.]

Lightspeed’s inventory management functions set it apart from the competition. We like how its inventory management tools allow you to create product variations and bundles, upload thousands of SKUs at a time, access preloaded catalogs with over 8 million items and set stock alerts. Its built-in CRM and customer loyalty tools let you track customers’ purchase histories, create customer profiles, and build rewards programs and custom promotions.

Lightspeed Pricing

Plan Price Features
Retail Basic $89 per month Retail POS, one register, integrated payments, inventory management, access supplier catalogs, Lightspeed Capital, onboarding and professional service options, 24/7 chat support
Retail Core $149 per month Everything in the Basic plan, plus in-store loyalty; advanced sales, safe and inventory reports; accounting, e-commerce and marketing integrations, mobile scanner app
Retail Plus $239 per month Everything in the Core plan, plus custom reporting, API access, workflows, custom user roles, 24/7 phone support
Restaurant Starter $69 per month Customizable POS, menu manager, floor plans, advanced insights, take out and delivery, single-view reconciliation, pre-auth bar mode, CRM and loyalty, integrated payments
Restaurant Essential $189 per month Everything in the Starter plan, plus online ordering, contactless orders, tableside ordering and payment, Lightspeed Live app, multilocation management, advanced inventory management
Restaurant Premium $399 per month Everything in the Essential plan, plus raw API access, multiple revenue center support for hotels
Golf Custom quote Tee sheet, online booking, players database, dynamic pricing, event management, promotional engine, SMS marketing, monthly updates, Business Intelligence Lite, live support

Payment Processing Fees

  • 2.6% + $0.30 for card-not-present transactions
  • 2.6% + $0.10 for card-present transactions

Lightspeed Advantages

  • Lightspeed gives you a choice of three flexible pricing plans for retail POS systems.
  • The retail POS solution has robust e-commerce tools.
  • The robust inventory management functions set Lightspeed apart from the competition.

Lightspeed Disadvantages

  • Lightspeed charges more if you don’t use its payment processor.
  • Pricing for hardware isn’t transparent.
  • 24/7 phone support is only available with the highest-tier plans.

Trustpilot Score: Lightspeed has earned a TrustScore of 4.4 stars out of 5, indicating “excellent” ratings. Among the nearly 2,000 reviews, one customer wrote, “I’m pleased I went with Lightspeed. It took a little while to get the hang of everything. Very good help when I need it.”

CHECK OUT OUR FULL LIGHTSPEED REVIEW

Cake logo
  • Base Price: $69 per month
  • Top Features: QR code payments, self-service kiosks, tableside ordering
  • Trial Period: None
Editor's Rating: 9.5/10
Visit Site

Why Cake is Best for Efficiency

We found Cake to be the best POS system for food businesses prioritizing efficiency because of how straightforward and seamless it makes the customer and staff experiences. Business owners and employees can understand how the system works in under an hour. Restaurant customers can see their orders as they’re being built while communicating with the host via Guest Manager. We especially like that the system is cloud-based, but also love that an offline mode allows you to accept payments even if you run into internet connectivity issues — further fueling your establishment’s efficiency. Additionally, we were impressed with its bill-splitting tool. Other POS platforms aren’t as good at this as Cake.

Cake POS

Cake’s POS system is a restaurant-focused solution with tools specifically designed to aid food and beverage businesses. (Source: Cake)

Cake Pricing

Plan Price Features
Essentials $69 per month POS station, menu management, reporting, QR code payments, system health monitoring, remote training, Cake University, unlimited 24/7 support
Plus $125 per month Everything in the Essentials plan, along with commission-free online ordering, gift cards
Pro $295 per month Everything in the Plus plan, along with  Guest Manager, email marketing, loyalty tools

Payment Processing Fees

  • Competitive rates

Cake Advantages

  • Cake has an implementation team that guides you through setup and training.
  • The vendor offers discounts on subsequent terminals you purchase as your business grows.
  • The bill-splitting tool is more impressive here than with other restaurant-specific POS platforms.

Cake Disadvantages

  • Some of the most appealing features, like the Guest Manager suite, require the top-level Pro plan or are only available as add-ons.
  • Most rivals offer far more integrations.
  • The daily management reports aren’t as detailed as those of competitors.

CHECK OUT OUR FULL CAKE REVIEW

Shopify logo
  • Base Price: $5 per month
  • Top Features: Online store, extensive integrations, 24/7 customer support
  • Trial Period: 3 days
Editor's Rating: 9.5/10

Why Shopify is Best for Scalability

Shopify is a well-known platform many e-commerce businesses use to accept payments and manage inventory. With several POS service packages, we love that customers can easily upgrade their plan as their business expands and scales. Plus, while Shopify is best known in the e-commerce world, its POS system is also capable of serving the needs of businesses with physical stores. We find it valuable that Shopify provides a free trial without requiring any payment details, something that can’t be said of its competitors.

With an easy-to-use dashboard, excellent customer support and tons of integrations, it’s tough to find something not to like about this platform. It’s compatible with Android and iOS devices, and the system is fully customizable.

Shopify online store

Shopify unifies the management of brick-and-mortar and online stores in one POS system supported by mobile devices. (Source: Shopify)

Shopify Pricing

Plan Price Features
Starter (in-person) $5 per month Limited online store, POS Lite, one POS login, encrypted payments, unlimited registers, unified inventory, order management and fulfillment network, cash tracking, split payments, gift cards, refunds and returns, analytics, mobile apps, 24/7 chat support
Retail (in-person) $79 per month Everything in the Starter plan, plus POS Pro and unlimited POS logins
Basic (in-person and online) $29 per month + $79 per month for POS Pro Full-featured online store, POS Lite, unlimited POS logins, encrypted payments, unlimited registers, unified inventory, order management and fulfillment network, cash tracking, split payments, gift cards, refunds and returns, analytics, mobile apps, 24/7 chat support
Shopify (in-person and online) $79 per month + $79 per month for POS Pro Everything in the Basic plan, plus five additional staff accounts, discounted USPS rates, shipping insurance
Advanced (in-person and online) $299 per month + $79 per month for POS Pro Everything in the Shopify plan, plus 15 additional staff accounts, custom reports and analytics, third-party calculated shipping rates, duties and import taxes, enhanced chat support

Payment Processing Fees

  • Varies based on the service plan you select.

Shopify Advantages

  • Shopify has a variety of features and integrations that businesses can take advantage of as they scale.
  • The POS system is packed with extensive inventory management tools.
  • 24/7 customer support is included in all plans.

Shopify Disadvantages

  • Shopify’s payment processing rates vary by plan, in addition to whether the customer is paying online or in person.
  • You have to pay an extra transaction fee if you don’t use Shopify Payments.
  • Additional costs like a domain name fee and currency conversion fees may be too much for smaller businesses.

Trustpilot Score: Across 2,000 ratings, Shopify has a disappointing TrustScore of 1.5 stars out of 5, indicating “bad” reviews. However, one happy customer said, “I’ve been using Shopify for over 7 years now, and I couldn’t be more satisfied with their service. Of course, like any platform, there have been occasional hiccups, such as website crashes or checkout issues, but what sets Shopify apart is its consistently responsive customer support. They’ve always been there to promptly assist me whenever I’ve encountered any problems. Here’s to many more years of successful business with Shopify!”

CHECK OUT OUR FULL SHOPIFY REVIEW

TouchBistro logo
  • Base Price: $69 per month
  • Top Features: Menu management, tableside ordering, staff management
  • Trial Period: 14 days
Editor's Rating: 9.4/10

Why TouchBistro is Best for Restaurants

TouchBistro’s target market is the restaurant industry, including full-service establishments, quick-service joints, bars, clubs, food trucks and breweries. When testing the platform, we found a plethora of restaurant-specific features, like drag-and-drop table management tools, customizable menu dashboards, ingredient-level tracking, upsell settings and forced modifiers. TouchBistro’s mobile-friendly software uses iPads as mobile registers, which is helpful for restaurants offering tableside ordering and payment services. You can process payments through TouchBistro Payments (partnered with Chase) or integrate with a third-party payment processor.

TouchBistro Pricing

Plan Price Features
Point of sale $69 per month Floor plan and table management, menu management, staff management, reporting and analytics, tableside ordering
TouchBistro Payments (add-on) Custom quote Payment processing
Customer-Facing Display (add-on) Custom quote Counter screen
Kitchen Display System (add-on) $19 per month Order ticket views
Profit Management (add-on) $330 per month Inventory and financial tools
Online Ordering (add-on) $50 per month Commission-free ordering
Reservations (add-on) $229 per month Table reservations and status tracking
Loyalty (add-on) $99 per month CRM and rewards platform
Marketing (add-on) $99 per month Marketing platform
Gift cards (add-on) $25 per month Physical and digital gift cards

Payment Processing Fees

  • Cost plus pricing model

TouchBistro Advantages

  • TouchBistro has more than 200 restaurant-focused features.
  • You can create customer accounts to track order histories and manage balances.
  • More than 80 detailed reports give valuable insights into your business.

TouchBistro Disadvantages

  • TouchBistro has only one POS plan and charges a la carte for certain services, like online ordering and gift cards, potentially driving up your costs.
  • As an iPad-based system, this POS solution isn’t compatible with Android devices.
  • Due to customization options, TouchBistro may take a little longer to set up than other systems.

Trustpilot Score: TouchBistro has a TrustScore of 3.9 stars out of five. “Have been using touch bistro for about 10 years now. It’s a great POS platform for restaurants,” said one review, continuing, “Their technical support team is always available and waiting time is 0-5min never more than 5. System is so good for restaurants and also easy to edit. I recommend this to restaurant owners if you are looking to upgrade your business. Their reports are easy to understand and have many online options like reservation and gift cards.”

CHECK OUT OUR FULL TOUCHBISTRO REVIEW

Square logo
  • Base Price: $0
  • Top Features: Contactless payments, online and offline selling, team management
  • Trial Period: 30 Days
Editor's Rating: 9.1/10

Why Square is Best for Startups

We love that there are no monthly fees to use Square’s POS software, which makes it a perfect fit for startups looking to save money. Square has several software capabilities that integrate with its POS system, another reason it’s an excellent one-stop shop for startup businesses. Square’s customization options let you add services for team management, payroll, customer loyalty programs, gift cards, marketing, online sales and invoicing, so you can create a more versatile POS system for your unique needs as you grow beyond the startup point. We also like Square’s sleek hardware and that the mobile app is compatible with both iOS and Android devices.

Square POS

Square offers a general POS system as well as specific packages for retail, restaurant and service businesses. (Source: Square)

Square Pricing

Plan Price Features
Point of sale $0 End-to-end encrypted payments, contactless payments, offline payments, POS mobile app, Square magstripe reader, dispute management, takeover protection, fraud prevention, gift cards, item modifiers, customizable item grid, itemized refunds, digital receipts, customized receipts, custom tips, automatic discounts, customer directory, order notes, online ordering, order manager, online checkout links, Square Analytics, low-stock alerts, multilocation management, Square Team Management, phone support
Square for Retail $0 Square Retail Point of Sale app, online store, social media selling, Google product listings, basic inventory and catalog management tools, payments and invoicing, gift cards, refund management, order management, shipment manager, sales reports, customer profiles, unlimited passcodes, employee time tracking and scheduling
Square for Retail Plus $89 per month Everything in the free plan, along with advanced inventory tools, barcode scanning, customer accounts, cross-location returns, additional sales reports
Square for Retail Premium Custom quote Custom features, professional website tools, one-on-one onboarding
Square for Restaurants $0 Unlimited countertop POS devices, unlimited locations, open checks, menu management, table management, cash management, auto-gratuity, order manager, advanced discounts, ticket routing, real-time order updates, multidevice sync, kitchen performance reports, offline payments, remote device management, service chart reporting, analytics reports, online ordering, employee time tracking and scheduling, weekday phone support
Square for Restaurants Plus $60 per month Everything in the Free plan except only one countertop POS device, along with order-ready texts, additional reports, unlimited kitchen display devices, 24/7 phone support
Square for Restaurants Essentials Bundle $153 per month Everything in the Plus plan, along with mobile POS, Square Online Ordering Premium, Advanced Access, Square Shifts Plus, Square Team Communication, Square Payroll
Square Appointments $0 Mobile app, unlimited calendars, custom schedule, text and email reminders, Square Assistant, Square Online booking website, booking integrations, credit cards on file, invoices, Cash App Pay, tap to pay, item search and barcode scanning, discounts, prepayments, offline payments, stock counts and low-stock alerts, item categories, sales reports, customer groups, automated marketing campaigns, Square Go, Square Messages, customer profiles, appointment and sales history, automated contract sends, Square hardware, Bookings API (read access)
Square Appointments Plus $29 per month Everything in the Free plan, along with multilocation management, class booking, waitlist, Google calendar sync, email and text confirmations, custom text notifications, cancellation policy, additional reports, Bookings API (write access)
Square Appointments Premium $69 per month Everything in the Plus plan, along with resource management, unlimited permissions and advanced access tools, employee scheduling and time tracking, service costs tracking, custom contract fields

Payment Processing Fees

  • 2.9% + $0.30 for card-not-present transactions
  • 2.6% + $0.10 for card-present transactions
  • 3.5% + $0.15 for keyed-in transactions

Square Advantages

  • Free add-ons include virtual terminals, digital invoicing and employee scheduling tools.
  • The vendor provides 30-day free trials of its Square for Retail Plus plan, Square for Restaurant and Square Appointments plans.
  • Square also offers no-fee business checking and savings accounts, as well as loans.

Square Disadvantages

  • Square’s POS systems aren’t compatible with third-party payment processors.
  • Loyalty programs are an add-on service costing a minimum of $45 per month per location.
  • Some customers have complained about the company’s customer service.

Trustpilot Score: Square has racked up more than 4,000 ratings and a TrustScore of 4 stars out of 5. One of the user reviews stated, “I have used many different Credit Card Solutions and POS Systems. I’ll take Square over all of them. It’s just easy and straight forward. No hidden fees or crazy calculations needed to determine the fees. Also great support. And you can take pretty much every payment except Venmo direct in the app. Their Support is fantastic.”

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What Is a POS System?

A POS, or point-of-sale, system is a combination of hardware and software designed to ring up sales and process payments. Retailers, restaurant owners and online merchants are common users of POS systems. They serve businesses of all sizes, from mom-and-pop shops to large chains.

Depending on your business’s needs, your POS system’s hardware may include a cash drawer, credit card reader, receipt printer and barcode scanner, or more advanced equipment like customer-facing displays. On the software front, a modern POS program typically performs a multitude of tasks, such as checking out guests, processing payments, managing orders, tracking employee time and promoting customer loyalty initiatives.

There are both server- and cloud-based POS systems. Cloud versions are more popular because they are cheaper, easier to use and require no maintenance on the business owner’s part. They also provide full access to the system wherever you have an internet connection available, making them ideal for management. However, server-based and hybrid systems mean you aren’t relying on a stable internet connection for the platform to function.

What Are the Benefits of a POS System?

Having the right POS system in place is like adding to the power of your workforce without actually hiring additional employees. Thanks to these solutions’ automated tools and innovative features, you can take the strain out of otherwise manual, intricate tasks like reaching new and existing customers, tracking spending and tweaking operations to make your company run smoother. Offloading these important but energy-draining activities will free you up to focus on the creative strategies that allow your business to thrive.

Below are just a few of the benefits of implementing a high-quality POS system.

Streamlined operations

The right POS system can help you streamline operations for your business in a big way, so it’s worth looking at how you can use a POS system to adjust the aspects where your business operations are bottlenecked. Depending on your industry, a POS program can help you keep a closer eye on inventory levels, get customer lines moving and better coordinate between your marketing and sales teams.

Better customer relationships

If you’re looking to improve your connections with existing customers and reel in new ones along the way, a modern POS system can give you the marketing and loyalty tools to do just that. Newsletters, birthday recognitions, specially tailored promotions — it’s all at your fingertips with the right POS platform.

Significant savings

Whether you need to get a better handle on inventory, cut down on discounts due to mistakes or eliminate the need for additional employees, a POS system can drive cost efficiencies. When you’re a business owner, every penny counts, and a little help reducing operational expenses through AI-boosted POS tools can mean significant savings.

Increased insights

Tired of shooting in the dark when it comes to saving money, assigning employees to certain tasks and improving customer relationships? Insights from POS-generated reports on company sales trends, employee behavior, customer interactions and more can set you on the path toward advantageous decisions that take your business to the next level.

How Much Does a POS System Cost?

Lightspeed software

While businesses will have a monthly subscription fee for the POS software, their upfront costs will vary based on their chosen hardware. (Source: Lightspeed)

Advancements in technology and a reduction in point-of-sale hardware and software prices have widened the market for POS systems for all types and sizes of businesses. Hardware no longer costs several thousand dollars, and the service contracts aren’t hundreds of dollars per month. Today, there are price points to fit one-shop merchants as well as retailers with multiple locations and e-commerce businesses.

There are three aspects to consider when determining the price of a POS solution: hardware, software and payment processing. POS system costs vary depending on the hardware and software features you need and the payment processor you use. Monthly software subscription costs can range from $0 to over $200 for systems with cloud-based functionality. With select vendors, some hardware is complimentary, while others charge as much as $1,200 for a robust POS register system.

POS Hardware Costs

There are a variety of POS hardware options that will impact your costs. Depending on your business, your POS system may need a terminal, tablet or computer; cash drawer; card reader; barcode scanners; receipt printer; and signature-capture devices. The best POS systems are compatible with third-party hardware, letting you shop around for deals (and continue using your chosen hardware if you switch software providers later). They’re also scalable, allowing you to start small with a single terminal and add peripherals as your business and budget expand.

For small businesses with basic needs primarily around accepting credit card payments, a phone or tablet and a card reader will suffice. If you already have mobile devices and only require EMV-compliant and an NFC-enabled credit card reader, this setup usually ranges from $20 to $100. [Learn why restaurant businesses should use tablets.]

Most small businesses will want a variety of accessories, such as a tablet stand, cash drawer and receipt printer. For this type of setup (using your own tablet), you’ll typically pay between $600 and $1,200. Additional hardware like barcode scanners, kitchen printers and display screens cost extra.

Bottom LineBottom line

POS hardware typically costs $20 to $1,000, depending on what you need. Peripherals such as barcode scanners and display screens will add to your expenses.

POS Software Costs

The cost of POS software largely depends on the features you need. You could pay anywhere between $25 and $300 per month for a POS software plan. Monthly subscriptions are the most common payment model in the POS world.

Most cloud-based POS vendors have pricing tiers with different features. Some software packages limit the number of users or the monthly sales volume you can process. Some POS companies like Toast provide free POS software, but there’s a catch: You must process your payments through them instead of a third-party processor.

If you want a basic, free POS system, the best options are from highly rated mobile credit card processors, such as Square. These credit card processing companies include POS features in their mobile processing apps. You must use the same provider for your payment processing in order to use its POS app, but you aren’t locked into a long-term contract. Processing fees are charged on a pay-as-you-go basis, which is ideal for very small businesses.

If you need more out of your POS software than just the ability to ring up sales — features like inventory management, e-commerce capabilities or employee scheduling tools — expect to pay $40 to $400 per month. The more bells and whistles you want, the higher the monthly cost will be. Whether you get an industry-specific plan, like those offered by Clover and Lightspeed, will also affect your software expenses.

TipBottom line

Before deciding on a POS system, get a full demonstration of the software you’re interested in. Some vendors offer self-guided demos while others employ sales representatives and product specialists who can show you how the platform works.

Payment Processing

The final piece of the POS pricing puzzle is payment processing. This is the cost to accept and process customers’ payments through your POS device. These involve transaction fees for card-present, card-not-present and keyed-in credit card payments. Rates typically vary by processor.

The best POS vendors provide you with a choice of payment processors, giving you the opportunity to shop around for low rates and affordable fees. This means you won’t have to switch out your entire POS system if you decide to use a different processor. [Check out our recommendations for the best credit card processors.]

However, some POS providers are increasingly offering in-house processing, which can be convenient but more costly in the long run. Some give you a choice to use their in-house processing service, while others charge an extra fee (either monthly or per transaction) if you want to use a third-party processor. Notably, Clover and Square require you to use their in-house credit card processing services exclusively.

FYIDid you know

The average credit card processing fee ranges from 1.3% to 3.5% per transaction.

What Are Some Features of POS Systems?

Toast POS system

While most POS systems have the same basic functionality, industry-focused solutions like those offered by Toast (for food and beverage businesses) include specific features and tools designed for the business type. (Source: Toast)

POS systems can have hundreds of features, but they’re meaningless if you don’t use them. While some businesses may require a full arsenal of point-of-sale equipment and software functions, others may prefer to keep things simple. As you look for a POS solution, think about what your business needs, the functionality that would be nice to have and which features you’ll never end up using.

Software Features

Besides the basic cash register features that every POS solution has, the specific capabilities within each feature set vary by system and by plan. First and foremost, the standard feature to look for beyond payment processing is inventory management. Such modules can include a product catalog, quantity tracking, low-stock alerts and automatic reordering. Next, you’ll want to consider features geared toward customer retention. Many POS systems have built-in tools for this, but you may not want all the customer management and loyalty program features some POS vendors offer. If your business only needs to collect customers’ payment and delivery information, you won’t need a built-in CRM. But if you’re looking to create customer profiles with detailed purchase histories and to add notes (such as customers’ birthdays, preferences or allergies), then you want a more robust system. In that case, you might want to look into Square, Lightspeed and TouchBistro.

Another critical feature to look for is reports and analytics. Because the POS software tracks all of your sales, you get an overview of what inventory is moving and what isn’t, which can help you identify sales trends and glean customer insights. All POS systems can generate reports, but the number of reports, specific report types and customization options differ between systems. If you’re a company that requires detailed reports, Clover is a good POS system to consider. Keep in mind that some advanced features, like customized reporting, employee management functions and scheduling tools, may be available only at higher service tiers, or you may need to add apps or software integrations to the POS system to augment its functionality.

Clover Flex reader

The Clover Flex is a portable, handheld device for tableside orders and payments, although it can be used at other locales as well. (Source: Clover)

Hardware Features

You have a lot of options when it comes to POS hardware and how you configure your system. A basic POS station has a tablet or touchscreen, a credit card reader, a cash drawer and till, and a receipt printer. Some POS systems are compatible with additional peripherals, like customer-facing displays, kitchen display screens, digital menu boards, barcode scanners and kiosks. Note that proprietary POS hardware works only with the system you’re purchasing it for, so it’ll be unusable if you change systems. Because the hardware is system-specific, you can’t use the hardware if you want to switch to a new platform, whereas open-source POS hardware can be used with multiple POS systems.

Most of the time, you’ll buy a credit card terminal or mobile reader from your payment processing company. However, sometimes you must purchase it from the POS company you sign up with. Whether you buy it from your payment processor or POS vendor, you want it to be EMV-certified so you can accept chip cards at your point of sale. You also want it to have NFC capabilities so you can accept contactless payments like Apple Pay, Google Pay and Samsung Pay. For companies that don’t accept in-person payments, you can get by without purchasing a card reader, but you’ll still need a payment gateway so customers can complete transactions.

FYIDid you know

The best POS systems boast native integrations for a seamless technology experience. Some vendors have marketplaces loaded with hundreds of compatible third-party apps that can streamline your operations. Others have open APIs that allow you to develop your own integrations.

What Are Some Alternative POS System Options?

While we’re confident our top picks above will meet your company’s point-of-sale needs, the additional POS systems we examined below are alternative options that also have notable selling points.

Lavu

If you’re looking for a restaurant-specific POS system with lots of flexibility, the iPad-based Lavu platform comes packed with more than 200 customizable POS features and tools so businesses of any size can customize a plan to fit their needs. Lavu also rises above its competitors with its add-on features and services; it has nearly 15 in-house integrations that you can add to its POS offering, making it easy to expand your setup. Few competitors offer this many native integrations to support their POS systems. You can also integrate the software with several third-party apps to tailor the system to your needs. Learn more about Lavu.

Helcim

With a rate guarantee and processing fees that are better than those of its rivals, Helcim is one of the best POS solutions if you’re concerned about payment processing. Helcim is a payment processor first and foremost, but it offers an application that operates as a POS system on any device, including computers, tablets and smartphones. Like Clover, Helcim is an all-in-one platform providing merchants with various payment and billing methods, and we also like that merchants can take advantage of a free online store as part of their plan for no additional cost. Helcim takes a no-frills approach, so you get all of the features with a single interchange-plus rate and don’t have to worry about a monthly fee. Read our review of Helcim for more details or visit the Helcim website.

GoDaddy

Similar to Shopify, GoDaddy offers comprehensive POS and e-commerce functionality, making it ideal for businesses geared toward in-person and online sales. Some GoDaddy e-commerce features and tools that we didn’t find in many POS competitors include website design templates, custom domain connections, website security (SSL) and online store creation. We like that you can list thousands of products online, automatically sync your inventory across various locations (e.g., Amazon, Etsy, social media sites) and manage your inventory from a single dashboard. You can also take advantage of marketplace and social selling tools. See a breakdown of plan options in our full GoDaddy review.

CardConnect

CardConnect shines in offering secure payment processing services. CardConnect works closely with Fiserv in order to provide its customers with top POS products, including those offered by Clover. CardConnect can supply your business with high-quality countertop terminals that provide support for both EMV and NFC mobile payment methods, like Apple Pay. We also like how CardConnect allows you to set up hosted payment pages to receive payments or donations online. You don’t have to know any complex programming languages to get started, and there’s no charge for using its primary system, CardPointe.

ePOSNow

Epos Now serves businesses in retail and hospitality with POS software to fit each industry’s specific needs. It offers numerous hardware options and great compatibility between devices, including touchscreen POS systems, iPads, Samsung tablets, a mobile POS called Epos Pocket, receipt printers and cash drawers. The Epos Now software is rich in features and easily scalable, which is excellent for growing businesses that want to start with a simple POS solution and then expand it. It can integrate with credit card processors and more than 100 third-party applications, allowing your business to create a completely customized system. Find out about features and pricing in our comprehensive Epos Now review.

Revel

Revel’s iPad-based POS system for food and beverage businesses excels with its customer loyalty capabilities. You can capture customer info through your POS software, create loyalty programs and designate how customers earn loyalty points. Revel developed an in-house, customizable loyalty reward card program so you can build your own gift card program or you can integrate it with Paytronix, Punchh, Como, LoyaltyPlant, Spendgo, Pepper, LevelUp or Repeat Returns. Only a few POS systems we researched have such a wide selection of loyalty programs.

Wix

Many small business owners turn to Wix to create their websites at cost-effective rates. The nice thing about Wix POS is that you can integrate your website with an online store. That means you can easily manage your sales and inventory in one place. Plus, with Wix and Stripe’s business partnership, you get a fully mobile POS system with flat-rate payment processing and e-commerce functionality. We especially value how easy it is to learn the platform and, if you’re not satisfied with your hardware, you can take advantage of a 30-day money-back guarantee. Learn more about Wix.

Brilliant

One of the highlights of the Brilliant POS system is how good it is for employee management. Inside the labor scheduler, you have comprehensive details about payroll and scheduling for each staff member. If you’re using the system for a restaurant, you can see how your team and specific employees are performing, as well as get a breakdown of the busy times of the day to help plan shifts. In addition to employee management, Brilliant also stands out for its affordable pricing. Check out the costs in our Brilliant POS review.

How to Choose a POS System

Square timecards

Businesses need to consider whether they want their POS software to include scheduling and timekeeping tools like those offered by Square or if they rather use a standalone time and attendance system. (Source: Square)

As an established business owner, you likely already have a POS system in place and are either unhappy with it or looking for a more advanced solution. As you upgrade or replace your platform, there are several factors you should consider during the decision-making journey. We spoke with business owners to find out what they prioritized during the buying process and what advice they have for fellow entrepreneurs choosing a new POS system.

Pricing

POS systems generally have recurring monthly costs, so it’s essential to make sure your business can cover the long-term expense. While you shouldn’t sign up for a plan that will break your budget, it may be worthwhile to choose a mid-level or high-tier plan that will be more beneficial over the long run than a basic package. 

“An advanced POS may cost more but provides tools to scale,” said Haiko de Poel, owner of The Great Greek Charleston. “If growth is a goal, the extra investment in a sophisticated system will pay off.”

Jay Owen, CEO of Business Builders agreed. “If growth and scale are priorities, invest in a system with powerful features, even if [it] costs more,” he told us. 

Dylan Cleppe, owner of OneStop Nortwest, similarly said, “An advanced platform may cost more upfront but provide infrastructure to scale, avoiding replacement costs down the road.”

Industry-Specific Features

Many of the leading POS vendors today offer feature sets designed for specific industries. For example, Clover has different packages built for various sectors in mind, such as retail stores versus businesses in home and field services.

For Matt Foley, founder of LobsterOrder.com, choosing a restaurant-specific POS system was critical, leading his team to select Toast. “We had to choose this really because of its strong features and design for the food service business, [which is] very important for us having a seafood business,” he said.

Omnichannel Ease of Use

Your chosen POS system should be easy to navigate, especially across different sales channels. If you operate in multiple locations or offer e-commerce in addition to brick-and-mortar retail, using your POS solution should operate seamlessly in all situations.

Those needs drove Nathan Clark’s search when he was looking for a POS system as the CEO of Organix SEO Agency. “Our main criteria for selecting a POS were ease of use and smooth integration with our store. We also needed a system that could manage both our in-store and online sales,” he said.

Clark found Shopify “intuitive to use,” noting, “The way it seamlessly works with our store has been fantastic.”

Payment Options & Rates

During her quest for a POS system, Bas Rouge Farm & Forge owner Ivonne Vazquez found that “there were many factors to consider such as transaction fees, customer service, ability to accept many types of payments including NFC … the facility to integrate securely with my financial institution and quick processing time to add funds into my account.”

Prioritizing payment options and credit card processing rates led Vazquez to GoDaddy’s POS solution. “It had lower transaction fees, which is great for business,” she said. “Plus, the ability to tap, swipe or insert was also a deciding factor as it means I can cater to more groups of customers and their preferred payment methods, leading to a better overall customer experience.”

Scalability

With any enterprise, your objective is to keep growing and scale your business over time. That means your company’s needs will continue to evolve over time, too, which is why it’s important to choose a flexible POS system that can scale as your business does.

“Select a POS that can grow with your business,” Foley said. “For instance, Toast offers flexible pricing plans and additional features that can be added when needed, thus [making it] ideally suited for businesses preparing for growth.”

Integrations

Brett Henrichsen, owner of Posterprintshop, was particularly concerned about integrations and customizability. He liked that “Clover offered an open API to connect with our store,” and said business owners should “choose a POS that integrates completely with your current systems.”

Reports

During his search, Henrichsen also placed value on “in-depth sales reporting to optimize our business.” That’s a lesson de Poel learned the hard way.

“I wish I had evaluated analytics and data more closely,” he told us. “For catering, understanding sales trends and menu performance is key to growth. Clover’s basic reports don’t provide the insights I need.”

de Poel’s advice? “Determine your ‘must-haves’ and focus on systems that excel in those areas. Don’t just consider the basics,” he said. “For food businesses, consider inventory management, menu building and data analytics.”

Methodology

To determine the best POS systems on the market, our team of sales experts and software analysts evaluated an initial list of 112 platforms. As this number suggests, we cast a wide net, looking not only at popular, well-known POS services but also at lesser-known platforms and up-and-coming vendors that might appeal to established businesses. 

To narrow our list, our experts and analysts studied each solution’s functionality and judged the products on nearly 50 factors. These included the availability of industry-specific plans, payment options, credit card processing rates, usability, scalability, customer support resources and more.

Based on that research, we further narrowed our list to 14 POS systems before ultimately choosing seven POS programs as our top recommendations. Those decisions were based on in-depth investigations that included participating in vendor demos, conducting hands-on testing and scouring real customer testimonials to gauge how their user experiences measured up to ours.

The main factors highlighted below were weighted differently in our overall conclusion. The weights were determined based on how much business owners prioritize these criteria when shopping for business software and services and making purchasing decisions.

  • Pricing (30%): Our experts and analysts compared and contrasted each vendor’s plans, judging which packages offered the best bang for your buck. They took into account monthly subscription fees, credit card processing rates, hardware costs and whether there were industry-specific pricing plans.
  • Features (25%): We looked for standard POS system functions like in-store, mobile and online payment processing, inventory management, customer management and loyalty programs. We also assessed the available integrations and awarded extra points for advanced services, like AI-powered stock monitoring and price control.
  • Ease of Use (25%): We tested the hardware and software ourselves, gauging each solution’s learning curve, user-friendliness and customization options. We also considered whether there were e-commerce capabilities and a fully featured mobile app for managing sales and marketing tasks on the go.
  • Customer Service (20%): We evaluated the range of customer service options, including whether phone assistance was provided with all package tiers. We also examined each vendor’s online resources for businesses interested in self-guided help.

Based on these criteria, we not only determined which POS systems our readers could trust but also the ways in which each solution could best serve different business needs. Some solutions were better at certain tasks than others or more suited to a particular type of company. These takeaways informed the “Best for” use cases you see on this page.

To learn more about our methodology, see our full editorial process.

POS System FAQs

The types of businesses that use a POS system are retailers, restaurants and just about any merchant that makes sales. A street vendor or food truck can use a POS system to accept orders and payments in the same way that an online store or a hair salon can use a POS system to ring up sales. Hotels, golf ranges, and home and field services also commonly use POS systems.

The three main types of POS systems are cloud-based, on-premises and hybrid systems. The right type for your business depends on your needs.

  • Cloud-based POS: This is the most common type of POS system on the market and tends to be the cheapest. With a cloud-based POS, all the software is online. You don’t need to set up a local server to host your data; the POS provider takes care of that, along with all software updates. The one potential downside is the software’s reliance on consistent internet access and a strong connection.
  • On-premises POS: With an on-premises POS system, the software is installed on a server instead of hosted in the cloud. That eliminates the need to access the internet to ring up sales, but you have to maintain your own server. A server-based POS system tends to be pricier than a cloud-based POS system, partly because of the extra IT hardware and support you may need to maintain it.
  • Hybrid POS: A hybrid POS system gives you the best of both worlds: the convenience of a cloud POS with the reliability of a server-based system. With this type of POS, the system runs on your local server and backs up to the cloud. If you need to access your sales data on the go, it’ll be in the cloud. If your internet is down, you won’t have to worry about disruptions to your sales process. However, a hybrid solution isn’t as easy to set up as a cloud-based one, and it may require extra IT costs.

The best POS systems come with apps that can be installed on tablets and smartphones, transforming the devices into mobile POS, or mPOS, systems. Retailers can use them as mobile checkout devices to ring up customer orders anywhere on the store floor, while restaurants can use them to take orders and accept tableside payments. You can also attach a tablet to a stand and turn it into a stationary kiosk. From there, you can add peripherals, such as a cash drawer and a receipt printer, to create a countertop checkout station.

The obvious difference between a POS and mPOS is the ability to take your point-of-sale hardware on the go. With a POS system, the hardware is fixed within one physical location; you can’t ring someone up as they walk through your store or bring a digital menu to their table. You can do that with an mPOS system since the terminal is portable. As a result, an mPOS system is ideal for business owners who have multiple locations or work in places with unusual accessibility, as they can conveniently take their POS system with them.

Keep in mind that mPOS and POS systems use the same software, so you can accept and process payments, track inventory and run reports with both systems. The only difference is the portability; if you need to ring up sales wherever you are, you’ll require an mPOS system. [Find out more about choosing a mobile POS system.]

POS systems will help with dynamic pricing if they feature throttling functionality. These tools automatically adjust your product pricing based on supply and demand, allowing you to maximize profits. You can also set limits that determine when to drop prices and when to raise them.

Whether you should use a POS system depends on your goals and objectives as they relate to sales, payment processing, inventory management, customer management and employee management. A business that wants digital tools to process and track sales, manage stock, drive customer retention, and monitor employee hours and performance would be served well with a modern POS system.

However, a business that simply wants to ring up customer purchases, particularly cash ones, shouldn’t necessarily use a POS system. Basic needs may be better served at a more affordable price with a traditional cash register or cash box. Along the same lines, if a business cannot afford the upfront costs involved with POS equipment and the recurring monthly software subscription fees, they should not invest in a POS system until their budget has grown.

Other reasons a business may not want to use a POS system include the learning curve these solutions have. If you won’t have time to train your employees on how to use the hardware and software effectively, you shouldn’t bother implementing it.

In almost all cases, you need both POS system hardware and software. A POS system is comprised of interconnected equipment (the hardware) and computer programs (the software). For your terminals, card readers and other hardware to work, they have to be linked to the software. For the software to receive any data, it has to be linked to the hardware. However, if you run an e-commerce business and only process online sales, you do not need POS hardware — only software and a virtual terminal.

For businesses that do need POS system hardware and software, whether you purchase both components from the same vendor is up to you. Some equipment is compatible with multiple POS programs, allowing you to choose a vendor for each, while certain companies will require you to use their proprietary hardware if you want to use their software. You can choose a provider whose offerings and requirements align with your preferences.

The best free POS system is Square. This vendor offers four plans — Point of Sale, Square for Retail, Square for Restaurants and Square Appointments — at no cost; you only need to pay for payment processing, just as you would with any credit card processor or POS solution. These free plans include POS devices (the specific equipment depends on your business type), a point-of-sale app for ringing up sales, end-to-end encrypted payments, inventory tools, customer profiles, analytics reports and more appealing features.

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Quinn Springett Headshot
Written By: Quinn SpringettSenior Analyst & Expert on Business Operations
Quinn Springett is a technology expert who helps businesses make the most of the equipment they need to run their enterprises, whether that's a restaurant-specific POS system or a specialty van for a mobile health clinic. Springett specializes in testing software and hardware to identify where different solutions excel and where they fall short. Based on this first-hand experience, Springett compares products and gives his analysis so business owners can make informed purchasing decisions.
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