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Top 10 Best POS Systems & Companies - Revolutionize Your Business

Arjel Vajvoda Bio
Top 10 Best Point-of-Sale (POS) Systems & Software

Discover how a POS system can help you track real-time sales, expertly manage your business's inventory, and fully integrate with accounting software. 

Point-of-sale (POS) systems have evolved dramatically from their cash register roots. Nowadays, they're more like command centers for your business, handling everything from sales to inventory. For small businesses, a well-chosen POS can be a real asset, helping you manage stock, boost customer loyalty, and keep your team organized—all from one central hub.

Our guide will help you find a reliable, feature-rich POS that can streamline your operations and support your business growth.

Our Top 10 Best POS Systems & Companies:

  • Toast - Best POS system and company overall
  • Lightspeed - Best for accepting payments through the mobile app
  • Square Point of Sale - Best for driving sales through social media
  • Shopify - Best for in-depth sales analytics
  • Clover - Best for integration options
  • TouchBistro - Best for food service businesses
  • SpotOn - Best for payment mobility options
  • Flagship - Best for fraud prevention features
  • POS Nation - Best for automated inventory management
  • Revel - Best for offline payment processing
Show more


Our Methodology: How We Evaluated POS Systems

Our review team, comprised of industry experts and consumer advocates, evaluated various POS systems to see which are worth the investment. We used hands-on testing and thorough research, incorporating user feedback, customer reviews, and industry insights for a holistic review. Our comprehensive assessment of each brand was based on the following criteria:

Evaluation Criteria:

  • Features and functionality: We analyzed essential features like inventory management, sales tracking, and CRM capabilities. 

  • Ease of use: We assessed the user interface and navigation, considering the ease of learning and the quality of available support and training.

  • Hardware compatibility: We evaluated compatibility with various devices, including tablets, smartphones, and registers. We checked the availability and cost of peripherals like scanners and card readers.

  • Payment processing options: We explored the range of accepted payment methods, including cards and mobile wallets. We reviewed transaction fees and integration options with third-party processors.

  • Scalability: We gauged the system's ability to support business growth, looking at multi-store capabilities, employee management, and advanced reporting.

  • Integration capabilities: We verified the ease of integrating with other software, such as accounting tools, marketing platforms, and loyalty programs.

  • Customer support: We scrutinized the quality and availability of customer support, including options like live chat, phone assistance, and online resources.

  • Cost and pricing structure: We reviewed the overall costs, including setup fees, hardware, subscriptions, and transaction fees. We checked for transparency in pricing.

  • Security and compliance: We confirmed adherence to security standards, like PCI compliance, and evaluated features like data encryption and secure access.

  • Customer reviews and testimonials: We examined user reviews and testimonials on Trustpilot and BBB to gauge reliability, customer service, and overall satisfaction.

A Closer Look at the Top 10 POS Systems

  • 1
    Toast
    • Price rangeFrom $0.00 - $69/month
    • Best forFood industry services of every size
    • Mobile CompatibilityAndroid-based mobile compatibility

    Toast - Best POS system and company overall

    Toast is an Android-based POS system designed specifically for the restaurant industry. It lets you manage everything from front to back of house, multi-store locations, inventory management, and even payroll.

    For your front-of-house, Toast offers the Go 2, a handheld device for taking payments at the table, updating menus, sending digital receipts, and splitting checks. It also has a self-service kiosk where customers can place orders, choose add-ons, and leave tips. 

    In the kitchen, its display system syncs with the front-end devices to show incoming orders. Your staff can mark orders as done with a double tap, and the system can text customers when their food is ready. It even tracks how quickly each station is preparing dishes.

    Why we chose Toast: We appreciated Toast's sleek, commercial-grade Android devices that blend with any decor. These spill-proof terminals can handle kitchen accidents and use a hardwired connection for reliable offline mode. This ensures you can always process contactless, swipe, dip, and tap payments. If you'd like a closer look, you can schedule a tour to see Toast's features in action.

    Our experience: We set up a dummy account to test the Toast TakeOut mobile ordering app and were impressed. Customizing the storefront profile was a breeze, and updating menus and specials was straightforward. We easily added curbside pickup options and experimented with push notification orders. The app's commission-free model and access to thousands of potential customers were definite highlights. 

    Installation: Free installation with the first terminal

    Contract length: One year 

    Integrations: 200+ integrations with restaurant partners

    Pros
    • Commission-free processing of online orders
    • Starter plan includes free hardware kit
    • Multilingual hardware support
    Cons
    • $300 fee for late cancellation of installation or training
    • Customer support chat feature limited to US users
  • 2
    Lightspeed

    Lightspeed

    • Price rangeFrom $69 - $399/month
    • Best forAccepting payments through the mobile app
    • Mobile CompatibilityiPad, mobile extensions

    Lightspeed - Best for accepting payments through the mobile app

    Lightspeed is a unified point-of-sale and payments platform used by top businesses in 168,000 locations worldwide. It offers fast workflows and a full suite of integrations, giving you one touchpoint for all your business needs. From multichannel and multi-location management to inventory control, integrated payments, and real-time reporting, Lightspeed has you covered.

    Whether you run a retail store, restaurant, or golf course, Lightspeed has specialized solutions for your needs. You can manage takeout and delivery for restaurants, set up in-store loyalty programs for retail, or even manage tee sheets golf courses. 

    Lightspeed’s hardware is available in kits with everything from receipt printers and cash drawers to USB scanners. It can also be bought as individual items, mobile tap units, or servers that keep your system running even if you don’t have an internet connection.

    Why we chose Lightspeed: Lightspeed's "Order Anywhere" feature reduces wait times and diversifies revenue streams with simple, contactless payments via QR codes. Guests can order from their phones, split bills, and pay with just a few taps. Plus, Lightspeed's unified platform sends all transaction data to your POS in real time.

    Our experience: We tested out Lightspeed’s Mobile Scanner app, which turns an Android device into a powerful inventory management tool. It proved quite useful and could count products, track inventory, and fulfill orders. The software is ideal if you don’t want to buy additional devices. 

    Installation: Free one-on-one onboarding

    Contract length: Customizable as a fixed or rolling term contract

    Integrations: 22 across several categories

    Pros
    • Offers a free barcode generator
    • Provides free marketing templates for flyers and social media
    • No long-term contracts required for the Golf POS
    Cons
    • 24/7 chat support limited to English; other languages available during work hours
    • Restaurant POS charges extra for online ordering features (pickup and delivery)
  • 3
    Square Point of Sale

    Square Point of Sale

    • Price rangeFrom $0 with 2.6% + 10 ¢ per transaction (in-person payments)
    • Best forCustom processing rates for long-term customers
    • Mobile CompatibilityFully compatible with iPad and mobile devices

    Square - Best for driving sales through social media

    Square offers custom-tailored POS systems for restaurants, retail, and appointment-based businesses. Its free software handles over four billion transactions annually and comes without contracts or setup fees. From the start, you'll get encrypted payments, a free POS app, dispute management, and account protection.

    Square also provides a free magstripe reader, live support, and fraud prevention. You can accept card payments immediately at a single rate, regardless of transaction type. Plus, you get PCI compliance, chargeback help, and real-time reporting. And if your business exceeds $250,000 in annual sales, the platform offers custom payment processing rates. 

    Why we chose Square: Square empowers small businesses with a versatile, budget-friendly solution that turns your phone into a contactless payment terminal. Its user-friendly interface requires minimal training, allowing you to start accepting payments quickly and efficiently. With customizable add-ons like gift cards and team management tools, Square POS streamlines operations by reducing the need for multiple software systems

    Our experience: We tried Square’s social media ordering features, and it really impressed us. We set up our dummy account to take orders directly from Instagram, Facebook, and Google. We were also able to offer curbside pickup, local delivery, and shipping. Combining these features delivers a robust solution for selling on social media.

    Installation: No setup fees

    Contract length: No contracts

    Integrations: 30+ app integrations

    Pros
    • Enhances customer purchasing power with Afterpay installment options
    • Free forever plan
    • Includes a free card reader
    Cons
    • Free restaurant plan lacks full 24/7 phone support
    • Higher fees (3.5% + 15¢) apply for manually entered card transactions
  • 4
    Shopify
    • Price rangeFrom $5/month (in-person sales) - $39/month (in-person and online)
    • Best forBusinesses looking to integrate their online and physical retail systems
    • Mobile CompatibilityiPhone, iPad, and Android

    Shopify - Best for in-depth sales analytics

    Shopify POS is perfect for bringing your existing online Shopify store into the physical world. It lets you track orders and inventory seamlessly across your retail locations, online stores, and other active sales channels. Plus, you get a unified inventory feature, so every product is in a single place, online and in-store. 

    Every plan includes secure, encrypted payments, fast payouts, connected hardware, and the free Shopify POS app. You also get unlimited registers, cash tracking, split payments, refunds, returns, and both physical and digital gift cards. Opting for POS Pro adds advanced features like staff management, inventory management, customer profiles, and retail analytics tools.

    Why We Chose Shopify POS: We chose to review Shopify because it lets you design how customers move through your store with features like endless aisles, buy online and pick up in-store (BOPIS), flexible payment options, and loyalty programs. Its in-depth analytics track your store’s performance and can help you identify optimization opportunities. For Shopify users, it's the simplest way to integrate in-person and online selling.

    Our Experience: We tried Shopify POS's flexible payment options and were thrilled with the results. Using Shop Pay Installments, we set up a dummy account to offer "buy now, pay later" in-store. We can definitely see this feature adding a layer of convenience for customers and potentially boosting sales.

    Installation: No startup costs

    Contract length: Month-to-month

    Integrations: Supports hundreds of app integrations for unique use cases 

    Pros
    • Three-day free trial, with no credit card required
    • Payments are supported by 99% system uptime
    • 24/7 email, chat, and phone support
    Cons
    • Additional staff accounts not included in the basic plan
    • No free plans available
  • 5
    Clover

    Clover

    • Price rangeFrom $14.95 - $165/month
    • Best forExpanding businesses in any retail or service
    • Mobile CompatibilityProprietary hardware, not compatible with iOS

    Clover - Best for integration options

    Clover offers versatile POS solutions tailored for restaurants, retail, eCommerce, and service businesses. Whether you're accepting payments or managing inventory, Clover has you covered. Its concierge-style setup support means you get personalized help from experts who understand your business inside and out.

    With Clover, you can accept all payment types—tap, chip, swipe, Venmo, and PayPal—whether on your POS device, phone, or online. Real-time inventory tracking, low stock alerts, and auto-generated purchase orders make managing stock a breeze. Plus, Clover's built-in employee management tools let you track timesheets, run payroll, and set shifts and schedules. Additionally, sales, tips, and refund analytics help you spot your top performers.

    Why we chose Clover: We chose to review Clover because Clover helps you keep track of customers by remembering birthdays, order histories, and contact info. You can reward your regulars with a loyalty program managed through the built-in customer engagement app. Plus, Clover makes marketing easy with announcements, custom promotions, and marketing campaigns via email, text, or the free Clover mobile app.

    Our experience: We were quite impressed by the range of hardware Clover offers. During a mock review, we used the Flex system to do quick transactions. The kitchen display system (KDS) connected our front-of-house, online orders, and kitchen teams so well that it made the entire operation feel like a well-coordinated professional kitchen.

    Installation: Assisted installations are outsourced and subject to changing fees

    Contract length: Month-to-month

    Integrations: Customize your POS with Yelp, Homebase, and MailChimp

    Pros
    • Offers free overnight shipping of your POS hardware
    • No cancellation fees with 30-day notice
    • Provides 24/7 customer support and troubleshooting
    Cons
    • Some add-on integrations can become rather expensive
    • You have to deal with a lot of third-party vendors
  • 6
    TouchBistro

    TouchBistro

    • Price rangeFrom $69/month
    • Best forDesigned for all food industry businesses
    • Mobile CompatibilityiPhone, iPad, web-based

    TouchBistro - Best for food service businesses

    TouchBistro is an all-in-one POS and restaurant management system that covers front-of-house, back-of-house, and guest engagement solutions. With built-in tools, you can boost average check sizes, speed up table turnover, and promote your most profitable menu items. It's designed to streamline your restaurant operations and enhance the overall dining experience.

    You can customize your POS with add-ons that enhance both front and back-of-house operations. Extend capabilities with options like TouchBistro Payments for simplified transactions or customer-facing displays to boost satisfaction. You also get kitchen display systems for improved order accuracy and profit management tools to track costs and maximize profitability.

    Why we chose TouchBistro: We chose to review TouchBistro because it enhances guest engagement with features that simplify reservations, control capacity, and make customers feel like VIPs. Turn first-time guests into regulars with loyalty rewards and monitor them using the CRM platform and detailed reporting. Additionally, you can boost brand awareness and increase cash flow by designing and selling physical and digital gift cards.

    Our experience: We found TouchBistro's reporting and analytics incredibly insightful. During our test, we accessed over 50 detailed reports that provided deep insights into sales trends and staff performance. The information was specific and well-presented. It’ll definitely help you identify top-selling items and best-performing staff.

    Installation: Hardware installations come at an additional fee

    Contract length: Set out in personal quote, termination requires 30-day notice

    Integrations: 100+ integrations in inventory management, accounting, and business insights

    Pros
    • No commission fees for online ordering
    • POS software supports bill-splitting
    • You can set different menu availability for online and in-store meals
    Cons
    • No product and device bundles available
    • No month-to-month contracts
  • 7
    SpotOn
    • Price rangeFrom $0 - $135/month
    • Best forAdvanced POS features on mobile devices
    • Mobile CompatibilityAndroid/iOS

    SpotOn - Best for payment mobility options

    SpotOn offers point-of-sale systems and business software solutions for restaurants and small businesses, including retail, automotive, and health and beauty. You can offer customers multiple payment options, including cash, cards, and mobile payments like Apple Pay and Google Pay. Plus, with its offline mode, SpotOn keeps your business running smoothly even when the internet goes down.

    SpotOn boasts features like menu management, table layout management, and robust reporting and analytics. Its functionality can be further enhanced with digital menus, QR ordering, and payment add-ons. Additionally, SpotOn accommodates customers with loyalty programs, gift cards, and guest WiFi.

    Why we chose SpotOn: We chose to review SpotOn because it streamlines the tipping process, potentially increasing your team's earnings through suggested amounts on receipts or device screens. The system allows you to track tips and transactions by employee, ensuring fair distribution. You can easily adjust tip settings, including preset suggestions, directly from the device, giving you flexibility in your tipping strategy.

    Our experience: The Virtual Terminal and mobile POS were game-changers at our pop-up events, handling everything from sales to refunds without bulky equipment. We've been impressed by the support team's expertise, quickly resolving both hardware and software issues we've encountered. 

    Installation: Offers in-person training and setup

    Contract length: No long-term contracts

    Integrations: Features premium integrations like MarginEdge, Craftable, and Davo

    Pros
    • Software and hardware costs are integrated into processing fees
    • Top-rate staff management features with Teamwork app
    • Benefit from 24/7 phone support from real humans
    Cons
    • Commission-free online ordering not available on lowest plan
    • Limited hardware options
  • 8
    Flagship
    • Price rangeCustom quotes for all customers
    • Best forPayment processing
    • Mobile CompatibilityYes, Android and iOS

    Flagship - Best for fraud prevention features

    Flagship’s POS is a flexible payment solution for any type of business, whether you're running a store, selling online, or handling mobile payments. With eCommerce and Virtual Terminal options, accepting credit cards from your computer or website is a breeze. Plus, Flagship supports Apple Pay, Google Pay, and Samsung Pay, so you're covered for mobile payments too.

    Flagship uses the Clover Suite, offering devices like the Clover Flex, Station, Mini, and Go. These tools let you easily manage customer info, track sales, handle employee timecards and tips, and organize inventory. Flagship also takes security seriously with fraud prevention features that let you adjust your gateway settings. Plus, it supports AVS and CVV2 to verify transactions at the customer's address and card level.

    Why we chose Flagship: With Flagship's iPayment MobilePay Swipe and mobile app, you can effortlessly accept payments on the move. A dedicated account rep serves as your single point of contact, and 24/7 technical support is available for after-hours assistance. The platform also includes inventory management, built-in barcode scanning, and an online reporting tool to analyze your sales data all in one convenient system.

    Our Experience: We liked that we could personalize gift cards with our own branding, and the setup process was smooth and straightforward. Plus, knowing that the gift cards are reloadable with flexible redemption options made it even better. The loyalty program, powered by Pirq, gave us access to valuable customer data and robust analytics, allowing us to remarket effectively. 

    Installation: No surprise setup fees

    Contract length: Month-to-month service terms

    Integrations: 200 app integrations

    Pros
    • Promises a meet-or-beat processing rate or receive a free $200 Amex gift card
    • Accepts all major credit cards, including Visa, Mastercard, and Discover
    • Offers a free Clover Mini upon opening a merchant account
    Cons
    • Not upfront about processing fees on the website
    • Unclear "additional services" clause in the contract may lead to unwanted monthly charges
  • 9
    POS Nation

    POS Nation

    • Price rangeFrom $69/month + custom pricing
    • Best forSimple DIY setup
    • Mobile CompatibilityYes

    POS Nation - Best for automated inventory management

    POS Nation offers turnkey POS solutions tailored to specific industries, including retail, liquor, grocery, and convenience stores. If you prefer to build your own system, POS Nation lets you customize it with all the necessary features. Whether you're starting from scratch or looking for a specialized setup, the platform has you covered.

    Every POS Nation system comes fully loaded with features right out of the box, including customer loyalty programs, onboarding and training, payment processing, app integrations, remote access, unlimited users, and 24/7 support. Its hardware options range from the basics—like touch PCs, receipt printers, and barcode scanners—to more specialized solutions, such as label printers, customer displays, scales, and handheld inventory devices.

    Why we chose POS Nation: With its automated inventory features, you can set reorder thresholds that automatically contact vendors when stock is low, ensuring a continuous stock flow. Additionally, the auto-invoicing feature imports invoices when new stock arrives and updates your inventory levels automatically, leaving you to review and finalize. 

    Our experience: We were blown away by the level of detail in POS Nation’s inventory tracking. The Case Break feature allows you to track liquor by the case, bottle, or six-pack and seamlessly account for case breaks when individual items are sold separately. Similarly, the Carton-pack tracker makes it easy to view the status of items like cigarette cartridges.

    Installation: Helps with in-person onboarding, system training, and tech support

    Contract length: No long-term contracts

    Integrations: Full eCommerce integration and tools like QuickBooks and CAP Retail

    Pros
    • There are zero hidden fees
    • Offers a 30-day money-back guarantee
    • Hardware comes with a two-year warranty
    Cons
    • Possible learning curve due to extensive features
    • No free trial
  • 10
    Revel
    • Price rangeFrom $100/month
    • Best forSMBs and enterprise retail and food services
    • Mobile CompatibilityiPad compatible, mobile compatible

    Revel - Best for offline payment processing

    Revel is a POS and business management platform that pairs an intuitive cloud and iPad system with powerful tools. It helps restaurants and retailers enhance the customer experience, diversify revenue streams, and scale their businesses. Revel is designed to make managing day-to-day operations smoother and more efficient.

    The software focuses on four key areas: inventory, payments, team management, and reporting. With inventory control, you can manage prices, names, ingredients, and images while tracking quantities in real-time. The payments feature allows for bill splitting, bar tab holding, and acceptance of various payment types. Team management enables schedule distribution and time tracking through built-in timecards. Lastly, reporting provides insights into daily processes, inventory levels, and top-selling items.

    Why we chose Revel: We chose to review Revel because of its Always on Mode, which ensures your business keeps running smoothly, even when your connection goes down. Swiped payments taken offline are automatically queued and processed once you’re back online. Plus, you can control the number of offline transactions, reducing the risk associated with offline payments. It’s a reliable safety net that keeps your operations moving without a hitch.

    Our experience: We really liked Revel’s inventory tracking demo. It helps strike the perfect balance for on-hand inventory, allowing you to minimize waste and maximize profits. Also, with Online Ordering XT, customers always know what’s in stock, no matter where they shop. It’s a smart way to keep inventory efficient and customers informed.

    Installation: $674 installation fee

    Contract length: Revel Care Program is a 36-month contract

    Integrations: Integrates with variety of Revel-based and third-party services

    Pros
    • You can request a free demo of the multi-location POS in action
    • Allows you to create and apply discounts in real-time
    • Protects company and customer data with point-to-point encryption
    Cons
    • Revel Care Program is a fixed 36-month long contract
    • It’s one of the more expensive POS options


How to Compare the Best POS Systems & Companies

With so many unique POS solutions tailored for different industries and use cases, carefully weighing your options helps ensure you find the perfect fit. Deciding on the non-negotiable features your business needs and those you can live without will lead you to the right choice. 

Check out our comparison of the Top 10 Best POS Systems and Companies below to help you make an informed decision.

Best POS Systems

Best For

Pricing

Installation

Contract length

Integrations

Toast

Robust POS features for the food industry

From $0.00 - $69/month

Free installation with the first terminal

One year period

200+ integrations with restaurant partners

Lightspeed

Accepting payments through mobile app

From $69 - $399/month

Free one-on-one onboarding

Customizable as a fixed-term or rolling-term contract

22 across several categories

Square

Custom processing rates for long term customers

From $0 with 2.6% + 10 ¢ per transaction (in-person payments) 

No setup fees

No contracts

30+ app integrations 

Shopify POS

Various app integrations

From $5/month (in-person sales) - $39/month (in-person and online)

No startup fees

Month to month

Supports hundreds of app integrations for unique use cases 

Clover

Variety of specialized hardware solutions

From $14.95 - $165/month

Assisted installations are outsourced and subject to changing fees

Month to month

Customize your POS with apps like Yelp, Homebase, and MailChimp

TouchBistro

Managing customer and order capacity

From $69/month 

Hardware installations come at an additional fee

Set out in personal quote, termination requires 30-day notice

100+ integrations in inventory management, accounting, and business insights

SpotOn

Advanced POS features on mobile devices

From $0 - $135/month

Offers in-person training and setup

There are no long-term contracts

Features premium integrations like MarginEdge, Craftable, and Davo

Flagship

Loyalty programs and personalized gift card

Custom quotes for all customers

No surprise setup fees

Month-to-month service terms

200 app integrations 

POS Nation

Tracking inventory at the ingredient level

From $69/month 

Helps with in-person onboarding, system training, and tech support

No long-term contracts

Full eCommerce integration and tools like QuickBooks and CAP Retail

Revel

Team management and support features

From $100/month 

$674 installation fee

Revel Care Program is a 36-month contract

Integrates with variety of Revel-based and third-party services

Types of POS Software

There are 4 main types of POS software:

Mobile POS software 

This software is cloud-based and comes as an app on your smartphone or tablet. It’s usually compatible with a receipt printer and a credit card swiper, but not as powerful as a full terminal POS system. It’s ideal for sole traders such as plumbers or mobile food cart owners.

Tablet POS software 

The tablet version is similar to mobile POS software, but offers more features and capabilities. You could use tablet POS software to manage a large and complex retail businesses with multiple locations, including inventory tracking, employee time tracking, payroll, and accounting. They are compatible with many POS hardware solutions to form a complete POS system for any situation.

Terminal POS software 

This is a fixed POS software with full back-office capabilities. It can be cloud-based or on-premise. Terminal POS software is best suited to large retail or online stores, spas, malls, and other brick and mortar businesses.

Self-service or unattended POS software 

This is designed to be used in kiosks and outdoor units where it's not practical to post an employee. It is often integrated with another POS system nearby, like to provide an extra sales point in busy grocery stores, coffee shops, or food trucks. It can be cloud-based or on-premise since it's not used with a mobile system.

You’ll also find POS software designed for the unique needs of specific industries, such as restaurant and hospitality businesses, apparel retail, financial services, academia and education, and pharmaceuticals POS software.

The costs of your POS software will vary depending on the type of software you choose. Mobile POS software, such as a smartphone app, can begin at $50 per month, while more complex software can reach several hundred dollars monthly. When you buy POS software, you’ll usually need to pay an upfront purchase price, plus an ongoing monthly or yearly payment processing fees.

Other factors that may affect the cost of your POS software plans include:

  • How many features you add
  • Any hardware included
  • Number of integrations
  • Your operating system

POS Systems Costs

Point of Sale systems vary greatly in price depending on the type and size of business you’re looking to equip. There are two costs to consider when looking for a POS system: monthly software fees and an installation fee. 

Monthly software costs go anywhere from $0 to $100+ a month. Most paid POS programs will cost you between $15 and $30/month. Installation fees usually include software installation, as well as the hardware itself. Paid POS systems don’t always have user caps, meaning that an unlimited number of workers can use the program to make transactions.

There are, of course, “free” POS systems. This means that the hardware and monthly plans start at $0 but they charge businesses per transition. For example, a POS provider can charge anywhere from 2 to 4% plus a few cents per card-based transactions or manual keyed-in sales. 

Getting the Right POS Hardware 

POS hardware is the indispensable other half of your POS system. You’ll need to get the right hardware to match the actions and transactions you want to carry out using your POS system. A basic set of POS hardware consists of:

  • Printer to offer hard copies of receipts (retail stores, restaurants, and other brick and mortar businesses are likely to need this)
  • A POS terminal, or iPad or Android tablet to run your POS software
  • Credit card reader
  • A cash register to keep cash transactions secure and logged into your system

Depending on your business, you might also need:

  • Extra tablets so wait staff can process payments at the table in restaurants
  • A router to strengthen your internet for cloud-based POS systems
  • A local server to host your on-premise POS software
  • Weight scales for food retailers
  • Barcode scanners
  • Networking cables to connect all of your hardware
  • An extra kitchen printer
  • Self-serve checkout kiosks

The Benefits of a POS System for Your Business 

With a POS system, your business can retain more customers through a better, targeted loyalty program and you can also track inventory so that you never run out of stock unexpectedly. A POS system can help you run complex discount offers when appropriate. 

With the right POS system, you can also analyze sales history to discover seasonal buying trends and correlations, which can come in useful when you want to increase sales. You can also remove manual error by using barcode scanners and automatic synchronization, as well as combat absenteeism with a more reliable employee tracking system.

Other major benefits include improving payment security as well as the ability to make more sales thanks to your ability to accept payments across the market.

Cloud-Based vs. On-Premise POS Systems

A cloud-based POS system stores data on remote servers and can be accessed online, whereas a traditional or on-premise POS system stores data on a local server and can be accessed through an internal network. Here’s a breakdown of the main differences between a cloud-based POS and an on-premise POS:

Cloud-Based POS Systems
On-Premise POS Systems
Relatively low-cost to buy and setup but have higher ongoing costs
Expensive to setup and install, but carries very low ongoing costs
Always accessible from wherever you are, even if you’re out of the country
Comprehensive and extensive. On-premise POS systems can be used for very large and complex retail situations
Highly scalable
Not easily flexible or scalable
Easy to carry around, making it ideal for mobile types of businesses
Not easily portable, making it a poor choice for mobile businesses
Dependent on a good internet connection
Not reliant on the internet, so your POS system is always up and running even if the internet is down
Able to keep your data backed up on the cloud so that you won’t lose anything if the system crashes
At risk of losing all of your data if the server crashes
Easy to integrate with other business apps
Operated on a local server with all of your data and apps in your own network

If you have long-term business plans and if your requirements are likely to continue to evolve as your business grows, then a cloud-based POS system is probably the best choice for you. On the other hand, if you have fixed needs or a small budget, you might be best served by choosing a traditional POS system. 

How to Choose a POS System Provider

Choosing a POS system provider depends on what kind of business you’re running, how long you’ve been operating, and the scale of your operation. Finding the perfect system provider, though, takes some more research.   

Here are some questions, organized by category, that can help you choose the right POS system provider:

Hardware and Features

  • What features do I need?

  • What devices are needed to process payments? 

  • What hardware do I need? If you need a lot of items, a provider that bundles hardware options together with the software is a better bet, but if you're going to be using your existing iPad, you’ll need something different.

  • What kind of receipts are generated?

POS Setup

  • Does the POS system integrate well with my existing business apps?

  • Is it easy to set up and use? If it’s more complex, does it offer training?

  • How good is customer service?

Costs

  • Do I want to save money upfront or keep my monthly costs down?

  • How does payment processing work? What kind of hardware is offered by the POS company? Some POS companies offer technology unique to the brand, while others simply offer iPad rentals. 

  • Is the pricing plan transparent?

  • Are the payment processes cloud-based or more suitable for in-person transactions? 

Scalability

  • What analytics does it offer and what metrics can it check? Make sure that the ones that are most important to you are included in the package.

  • Does this POS system provide assistance for inventory management? If yes, it’s valuable to see whether there is help with product visibility, inventory, purchasing and replenishing, storage, analyzing inventory and orders, or multichannel tracking. 

  • Does this POS system have integrations for eCommerce, email marketing, or social media? A POS system can provide real time information to better customer experience. 

  • Is it simple to scale up as your business grows?

Seal the Deal with the Ideal POS Solution

Finding the perfect POS system can be a game-changer for your business. Businesses across the board are catching on to the power of these systems. In fact, 86% of restaurants use POS data to make decisions about discounts, loyalty programs, and marketing campaigns. Whether you're looking for a POS for small businesses or managing a larger operation, there's a system out there that fits your needs and budget. 

Top contenders like Toast, Lightspeed, and Square each offer unique strengths—from restaurant-specific features to multi-industry versatility and small-business simplicity. 

As you evaluate options, consider how each system aligns with your specific needs, whether it's robust inventory tracking, seamless payments, or powerful analytics. Ultimately, investing in the ideal POS is an investment in your company's efficiency, growth, and long-term success.

Frequently Asked Questions
What is a point-of-sale system?+-

A point of sale system is where you can ring up customers, receive payment for transactions, and make taxes payable. Point of sale systems are usually made up of special software to collect payment and customer information, as well as hardware to use in physical location. There are also point of sale systems that exist via cloud technology.

What types of businesses use POS systems?+-

There are tons of businesses that use POS systems. You can find point of sale technology at retail businesses like clothing or electronics stores, restaurants, consumer services like beauty salons or spas, the hospitality industry (coffee shops, drivers, travel agencies, hotels), and more.

When does your business need a POS system?+-

Your business needs a POS system when you notice that business is growing rapidly and you need help to track your inventory, customer activity, create in-depth reports, and accept payments quicker and with more ease. As your business grows and attracts more customers, a POS system will help reduce mistakes, save you time, and make your operations more organized.

How much does a POS system cost?+-

POS systems can be either free or paid. When you sign up for a paid POS system, expect to pay anywhere from $15 to $100+ per month for monthly software fees. Some brands also require an up-front, one-time fee for hardware and installation. Free POS systems usually require minimal hardware fees and instead of monthly payments, they charge per transaction.

What is the difference between a POS system and a payment processor?+-

Payment processors transfer payments from one account to another, serving as the communicator between the merchant and customer. POS systems do this and much more; point of sale systems use both software and hardware to not only collect payments but also settle taxes paid by merchants for transactions, create receipts, track activity, and more.

Is hardware included in the point of sale subscription?+-

Point of sale subscriptions usually come with a few different pieces of hardware like card readers, monitors, receipt printers, cash drawers, barcode scanners, and more. Many POS sale companies also let you use your own iPads and simply integrate their software into the existing technology.

Which free POS software is best?+-

Toast has been rated the #1 POS for iPads on the iOS app store and earned plenty of positive reviews for its flexibility, features, and prices.

What should I look for in a POS system?+-

Simply put, a good POS system is one that can accommodate your business' needs. It should be scalable, able to accommodate the size and diversity of products or services your business offers, and should have strong customer service support.

What is the best POS system for retail?+-

LightSpeed is a favorite POS system for retail businesses. It offers a solid eCommerce platform as well as hardware options such as scanners and electronic cash drawers that are particularly useful for retailers.

Arjel Vajvoda Bio
Arjel Vajvoda writes for Top10.com, bringing her SaaS expertise as Head of Product Development at Momotech to the table. She crafts product visions, manages lifecycles, optimizes processes, and fosters a collaborative environment where her team brings cutting-edge ideas to life. As Arjel is an expert who leads cross-functional teams, she knows what businesses need in order to deliver innovative solutions.