Best POS Systems for Small Businesses of April 2025

Factor in hardware portability, software integrations and your business’s specific industry needs to determine the best POS system.

Summary of the best POS systems

Overall POS System

High Sales Volumes

Online Businesses

International Businesses

Inventory Management

Choosing Your Own Payment Processor

Restaurants Doing Dine-in and Online Business

Restaurant-Specific Add-On Features

Cash Discount Program

Mobile POS Software

Managing Customer Reviews

Point-of-sale (POS) systems help you accept payments, manage sales and track inventory with feature-rich software and a variety of hardware options. Many come with built-in payment processing services, too.

Here are our top choices and why they stand out.

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Objective and comprehensive point-of-sale systems ratings rubric. (Learn more about our star ratings.)
Objective and comprehensive point-of-sale systems ratings rubric. (Learn more about our star ratings.)
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Product

Best for

Payment processing fees

Monthly fee

More options

Square

Square POS

on Square POS's secure website

Overall POS system

5.0

In-person: 2.6% + $0.15
Online: 2.9% + $0.30

$0

and up.

on Square POS's secure website

Helcim

Helcim POS

on Helcim POS's secure website

High sales volumes

4.6

In-person: 0.4% + $0.08
Online: 0.5% + $0.25

Plus interchange

$0

on Helcim POS's secure website

Shopify

Shopify Retail POS

on Shopify POS's secure website

Online businesses

5.0

In-person: 2.6% + $0.10
Online: 2.9% + $0.30

$39

and up for e-commerce plans with POS Lite; Can upgrade to POS Pro for an extra $89.

on Shopify POS's secure website

Stripe

Stripe Terminal

on Stripe Terminal's secure website

International businesses

5.0

In-person: 2.7% + $0.05
Online: 2.9% + $0.30

$0

on Stripe Terminal's secure website

Lightspeed

Lightspeed Retail POS

on Lightspeed Retail POS's secure website

Inventory management

4.3

In-person: 2.6% + $0.10
Online: 2.9% + $0.30

$109

for Basic plan, $179 for Core plan, $339 for Plus plan.

on Lightspeed Retail POS's secure website

Clover

Clover POS

on Clover POS's secure website

Choosing your own payment processor

5.0

In-person: 2.3% + $0.10
Online: 3.5% + $0.10

$0

and up.

on Clover POS's secure website

Toast

Toast POS

on Toast POS's secure website

Restaurants doing dine-in and online business

4.2

2.49% + $0.15

if you buy hardware upfront; 3.09% + $0.15 for pay-as-you-go option.

$0

Starter Kit; $69 Point of Sale plan; custom Build Your Own plan.

on Toast POS's secure website

SpotOn

SpotOn Restaurant

on SpotOn Restaurant's secure website

Restaurant-specific add-on features

4.3

1.99% + $0.25

For most cards in paid plans.

$0

and up.

on SpotOn Restaurant's secure website

Lavu

Lavu

on Lavu's secure website

Cash discount program

4.9

N/A

Quote-based.

$10

and up.

on Lavu's secure website

PayPal

PayPal Zettle

Mobile POS software

4.1

In-person: 2.29% + $0.09
Online: 3.49% + $0.09

$0

Payanywhere

Payanywhere POS

Managing customer reviews

4.1

In-person: 2.69% + $0.00
Online: 3.49% + $0.19

$0

and up.

Our picks for best POS systems

Our pick for

Overall POS system

Square

Square POS

on Square's website

Payment processing fees

In-person: 2.6% + $0.15
Online: 2.9% + $0.30

Monthly fee

$0

and up.

BEST FIT FOR

retail

Retail

Full-service restaurants

Full-service restaurants

Quick-service restaurants

Quick-service restaurants

Cafes and coffee shops

Cafes and coffee shops

Professional services

Professional services

(beauty, health, repair, etc.)

E-commerce

E-commerce

retail

Retail

Full-service restaurants

Full-service restaurants

Quick-service restaurants

Quick-service restaurants

Cafes and coffee shops

Cafes and coffee shops

Professional services

Professional services

(beauty, health, repair, etc.)

E-commerce

E-commerce

Pros

  • Free plan option available.

  • Offers helpful related services, like payroll, that integrate closely with its POS system.

  • No long-term contracts or termination fees.

  • All plans include a free online store.

Cons

  • Can’t run on Windows devices.

  • Complex industries might prefer a more specialized system.

Square’s transparent pricing, lack of long-term contracts, strong integrations and free POS software option make it a good fit for a range of industries. One potential exception? Square users who run restaurants, bars and breweries often call out that the POS can’t preauthorize credit cards. This means that to start a tab, you have to keep the customer’s card. If you’re worried about the convenience — or security — of that, you may want to consider alternatives (including Square's restaurant-specific solution).

Pros

  • Free plan option available.

  • Offers helpful related services, like payroll, that integrate closely with its POS system.

  • No long-term contracts or termination fees.

  • All plans include a free online store.

Cons

  • Can’t run on Windows devices.

  • Complex industries might prefer a more specialized system.

Square’s transparent pricing, lack of long-term contracts, strong integrations and free POS software option make it a good fit for a range of industries. One potential exception? Square users who run restaurants, bars and breweries often call out that the POS can’t preauthorize credit cards. This means that to start a tab, you have to keep the customer’s card. If you’re worried about the convenience — or security — of that, you may want to consider alternatives (including Square's restaurant-specific solution).

Our pick for

High sales volumes

Helcim

Helcim POS

on Helcim's website

Payment processing fees

In-person: 0.4% + $0.08
Online: 0.5% + $0.25

Plus interchange

Monthly fee

$0

BEST FIT FOR

Retail

Retail

Service-based

Service-based

E-commerce

E-commerce

Retail

Retail

Service-based

Service-based

E-commerce

E-commerce

Pros

  • No monthly software fees.

  • No long-term contract or termination fees.

  • Offers volume discounts for businesses whose monthly credit card volume surpasses $50,000.

  • Interchange-plus processing rates can help businesses save money.

Cons

  • Some hardware, like barcode scanners and cash drawers, are only available through a third-party provider.

  • No full POS register options.

As a full-service merchant services provider, Helcim can essentially do it all for a business: payment processing, point of sale, invoicing and business management.

And unlike flat-rate payment processors that charge the same transaction fee across different types of credit cards, Helcim uses an interchange-plus pricing model. This means your business saves when a customer uses a card with low interchange rates.

Helcim also offers volume discounts if you process more than $50,000 monthly, which is a plus for high-volume businesses. And if you need hardware for taking payments in-person, the company sells its own smart terminal and mobile card reader, too.

Pros

  • No monthly software fees.

  • No long-term contract or termination fees.

  • Offers volume discounts for businesses whose monthly credit card volume surpasses $50,000.

  • Interchange-plus processing rates can help businesses save money.

Cons

  • Some hardware, like barcode scanners and cash drawers, are only available through a third-party provider.

  • No full POS register options.

As a full-service merchant services provider, Helcim can essentially do it all for a business: payment processing, point of sale, invoicing and business management.

And unlike flat-rate payment processors that charge the same transaction fee across different types of credit cards, Helcim uses an interchange-plus pricing model. This means your business saves when a customer uses a card with low interchange rates.

Helcim also offers volume discounts if you process more than $50,000 monthly, which is a plus for high-volume businesses. And if you need hardware for taking payments in-person, the company sells its own smart terminal and mobile card reader, too.

Our pick for

Online businesses

Shopify

Shopify Retail POS

on Shopify's website

Payment processing fees

In-person: 2.6% + $0.10
Online: 2.9% + $0.30

Monthly fee

$39

and up for e-commerce plans with POS Lite; Can upgrade to POS Pro for an extra $89.

BEST FIT FOR

Retail

Retail

E-commerce

E-commerce

Retail

Retail

E-commerce

E-commerce

Pros

  • No long-term contracts or termination fees.

  • All plans include an online store.

  • Built specifically for online sellers.

  • 24/7 chat support.

Cons

  • No free plan options.

  • Cannot process cards in offline mode.

Shopify’s POS system is well equipped to handle all the complexities that come with selling items via an online store. In all subscription tiers, you can set up an online shop and add products almost instantly, sell through multiple channels (including social media), connect with vendors, automatically email customers who abandon their carts, process payments at reasonable rates and make sales in 133 currencies and multiple languages. These features make Shopify one of the best retail POS options.

Pros

  • No long-term contracts or termination fees.

  • All plans include an online store.

  • Built specifically for online sellers.

  • 24/7 chat support.

Cons

  • No free plan options.

  • Cannot process cards in offline mode.

Shopify’s POS system is well equipped to handle all the complexities that come with selling items via an online store. In all subscription tiers, you can set up an online shop and add products almost instantly, sell through multiple channels (including social media), connect with vendors, automatically email customers who abandon their carts, process payments at reasonable rates and make sales in 133 currencies and multiple languages. These features make Shopify one of the best retail POS options.

Our pick for

International businesses

Stripe

Stripe Terminal

on Stripe's website

Payment processing fees

In-person: 2.7% + $0.05
Online: 2.9% + $0.30

Monthly fee

$0

Pros

  • No monthly software fees.

  • No long-term contracts or termination fees.

  • 24/7 chat support.

  • Supports more than 135 currencies.

Cons

  • Does not include a POS app or standard POS capabilities.

  • Likely requires coding and developer expertise.

  • No phone or email support.

Stripe Terminal is an integration that allows you to extend your online business to in-person sales. With some coding, it can be connected to your POS app.

Stripe can also accept dozens of payment methods and more than 135 currencies, making it a strong fit for businesses with global reach. And its advanced developer tools allow you to create a checkout flow that feels custom, provided you know how to use them.

Pros

  • No monthly software fees.

  • No long-term contracts or termination fees.

  • 24/7 chat support.

  • Supports more than 135 currencies.

Cons

  • Does not include a POS app or standard POS capabilities.

  • Likely requires coding and developer expertise.

  • No phone or email support.

Stripe Terminal is an integration that allows you to extend your online business to in-person sales. With some coding, it can be connected to your POS app.

Stripe can also accept dozens of payment methods and more than 135 currencies, making it a strong fit for businesses with global reach. And its advanced developer tools allow you to create a checkout flow that feels custom, provided you know how to use them.

Our pick for

Inventory management

Lightspeed

Lightspeed Retail POS

on Lightspeed's website

Payment processing fees

In-person: 2.6% + $0.10
Online: 2.9% + $0.30

Monthly fee

$109

for Basic plan, $179 for Core plan, $339 for Plus plan.

BEST FIT FOR

Retail

Retail

Retail

Retail

Pros

  • Includes detailed inventory management tools for creating product variants.

  • No long-term contracts.

  • 24/7 live chat support.

  • Generate unlimited barcode labels.

Cons

  • No free plan options.

  • Accounting integrations are only available in Core and Plus plans.

  • Can’t process card payments in offline mode.

The Lightspeed POS system’s inventory management capabilities are outstanding at every subscription tier and more comprehensive than those of its competitors. When entering items into your system, you can add plenty of information — such as a description, images, cost, manufacturer’s suggested retail price (MSRP), your selling price, tax and discount rules, tags, barcodes, stock-keeping units (SKUs), brands, categories and custom-built fields — which can be used to generate and filter results on reports. The system is especially well suited for businesses with more than one location.

Pros

  • Includes detailed inventory management tools for creating product variants.

  • No long-term contracts.

  • 24/7 live chat support.

  • Generate unlimited barcode labels.

Cons

  • No free plan options.

  • Accounting integrations are only available in Core and Plus plans.

  • Can’t process card payments in offline mode.

The Lightspeed POS system’s inventory management capabilities are outstanding at every subscription tier and more comprehensive than those of its competitors. When entering items into your system, you can add plenty of information — such as a description, images, cost, manufacturer’s suggested retail price (MSRP), your selling price, tax and discount rules, tags, barcodes, stock-keeping units (SKUs), brands, categories and custom-built fields — which can be used to generate and filter results on reports. The system is especially well suited for businesses with more than one location.

Our pick for

Choosing your own payment processor

Clover

Clover POS

on Clover's website

Payment processing fees

In-person: 2.3% + $0.10
Online: 3.5% + $0.10

Monthly fee

$0

and up.

BEST FIT FOR

Full-service restaurants

Full-service restaurants

Quick-service restaurants

Quick-service restaurants

Cafes and coffee shops

Cafes and coffee shops

Food trucks

Food trucks

Retail

Retail

Service-based

Service-based

E-commerce

E-commerce

Full-service restaurants

Full-service restaurants

Quick-service restaurants

Quick-service restaurants

Cafes and coffee shops

Cafes and coffee shops

Food trucks

Food trucks

Retail

Retail

Service-based

Service-based

E-commerce

E-commerce

Pros

  • Free plan available if you’re only using a mobile card reader.

  • 24/7 phone support.

  • All restaurant plans include no-fee online ordering, and retail plans let you integrate with existing online stores.

  • Offers a variety of plans tailored to six specific types of businesses.

  • Can pair POS systems with third-party payment processors.

Cons

  • Promotions require a three-year contract.

  • May be subject to early termination fees if you use Clover as your payment processor.

  • Online payment processing rates are more expensive than competitors.

Unlike some of its competitors, Clover lets you pair its hardware and software with different merchant services providers, such as Wells Fargo, PNC, BBVA or Citi. This is especially ideal for businesses seeking out an interchange-plus payment processing model as opposed to Clover’s in-house flat-rate model. However, Clover hardware can’t be reprogrammed, so you’ll need to purchase it directly from your payment processor of choice and will only be able to use it with that processor.

Pros

  • Free plan available if you’re only using a mobile card reader.

  • 24/7 phone support.

  • All restaurant plans include no-fee online ordering, and retail plans let you integrate with existing online stores.

  • Offers a variety of plans tailored to six specific types of businesses.

  • Can pair POS systems with third-party payment processors.

Cons

  • Promotions require a three-year contract.

  • May be subject to early termination fees if you use Clover as your payment processor.

  • Online payment processing rates are more expensive than competitors.

Unlike some of its competitors, Clover lets you pair its hardware and software with different merchant services providers, such as Wells Fargo, PNC, BBVA or Citi. This is especially ideal for businesses seeking out an interchange-plus payment processing model as opposed to Clover’s in-house flat-rate model. However, Clover hardware can’t be reprogrammed, so you’ll need to purchase it directly from your payment processor of choice and will only be able to use it with that processor.

Our pick for

Restaurants doing dine-in and online business

Toast

Toast POS

on Toast's website

Payment processing fees

2.49% + $0.15

if you buy hardware upfront; 3.09% + $0.15 for pay-as-you-go option.

Monthly fee

$0

Starter Kit; $69 Point of Sale plan; custom Build Your Own plan.

BEST FIT FOR

Full-service restaurants

Full-service restaurants

Quick-service restaurants

Quick-service restaurants

Bars and clubs

Bars and clubs

Food trucks

Food trucks

Cafes and coffee shops

Cafes and coffee shops

Full-service restaurants

Full-service restaurants

Quick-service restaurants

Quick-service restaurants

Bars and clubs

Bars and clubs

Food trucks

Food trucks

Cafes and coffee shops

Cafes and coffee shops

Pros

  • Free plan available for restaurants with up to two POS terminals.

  • 24/7 phone and web messaging support.

  • Offers helpful related services, like payroll and team management software, that integrate closely with its POS system.

  • Built specifically for restaurants with in-house delivery platform available, among other industry-specific features.

Cons

  • Requires a two-year contract and charges early termination fees.

  • Online payment processing rates are more expensive than competitors.

  • Charges setup fee, and offline mode includes hidden cost of backup router.

  • Online ordering and accounting integrations cost extra.

Toast makes scalable POS systems for quick-service and full-service restaurants, fine dining establishments, bars, cafes and food trucks. It offers a variety of hardware options including countertop terminals, handheld systems for taking orders tableside, self-serve ordering kiosks and kitchen display screens.

It lets businesses integrate online ordering options with their existing Toast POS system, too. If your restaurant has multiple locations, customers can choose where they’d like to pick up their order.

Pros

  • Free plan available for restaurants with up to two POS terminals.

  • 24/7 phone and web messaging support.

  • Offers helpful related services, like payroll and team management software, that integrate closely with its POS system.

  • Built specifically for restaurants with in-house delivery platform available, among other industry-specific features.

Cons

  • Requires a two-year contract and charges early termination fees.

  • Online payment processing rates are more expensive than competitors.

  • Charges setup fee, and offline mode includes hidden cost of backup router.

  • Online ordering and accounting integrations cost extra.

Toast makes scalable POS systems for quick-service and full-service restaurants, fine dining establishments, bars, cafes and food trucks. It offers a variety of hardware options including countertop terminals, handheld systems for taking orders tableside, self-serve ordering kiosks and kitchen display screens.

It lets businesses integrate online ordering options with their existing Toast POS system, too. If your restaurant has multiple locations, customers can choose where they’d like to pick up their order.

Our pick for

Restaurant-specific add-on features

SpotOn

SpotOn Restaurant

External site (opens in new tab)
NerdWallet rating

4.3

on SpotOn's website

Payment processing fees

1.99% + $0.25

For most cards in paid plans.

Monthly fee

$0

and up.

BEST FIT FOR

Full-service restaurants

Full-service restaurants

Quick-service restaurants

Quick-service restaurants

Bars and clubs

Bars and clubs

Food trucks

Food trucks

Full-service restaurants

Full-service restaurants

Quick-service restaurants

Quick-service restaurants

Bars and clubs

Bars and clubs

Food trucks

Food trucks

Pros

  • Offers a free plan.

  • Restaurants can customize plans by adding loyalty programs, reservation capabilities, online ordering or employee scheduling software.

  • 24/7 phone support.

  • No long-term contract or termination fees.

Cons

  • Charges setup fee.

  • Offline mode includes the hidden cost of a router.

SpotOn’s monthly software fee and payment processing fees along with its ability to integrate with third-party hardware make this system an affordable and appealing option. SpotOn offers customizable add-on features such as a loyalty program and team management software. The company also has a strong reputation for its hands-on approach to customer support, from installation and training to 24/7 availability for assistance. The company’s Restaurant Advisory Council provides regular feedback for continual improvement, too.

Pros

  • Offers a free plan.

  • Restaurants can customize plans by adding loyalty programs, reservation capabilities, online ordering or employee scheduling software.

  • 24/7 phone support.

  • No long-term contract or termination fees.

Cons

  • Charges setup fee.

  • Offline mode includes the hidden cost of a router.

SpotOn’s monthly software fee and payment processing fees along with its ability to integrate with third-party hardware make this system an affordable and appealing option. SpotOn offers customizable add-on features such as a loyalty program and team management software. The company also has a strong reputation for its hands-on approach to customer support, from installation and training to 24/7 availability for assistance. The company’s Restaurant Advisory Council provides regular feedback for continual improvement, too.

Our pick for

Cash discount program

Lavu

on Lavu's website

Payment processing fees

N/A

Quote-based.

Monthly fee

$10

and up.

BEST FIT FOR

Restaurants

Restaurants

Cafes and coffee shops

Cafes and coffee shops

Food trucks

Food trucks

Restaurants

Restaurants

Cafes and coffee shops

Cafes and coffee shops

Food trucks

Food trucks

Pros

  • 24/7 phone and email support.

  • Highly customizable POS platform for those with programming skills.

  • Restaurants can set up timed menu changes, start customers’ tabs on one register and cash them out at another.

  • Dual pricing program can help decrease payment processing fees.

Cons

  • No free plan options.

  • Cannot cancel subscription before term is up.

  • Does not list payment processing or monthly software fees.

All of Lavu’s plans let restaurant owners opt for “dual pricing” options that offer customers discounts for paying in cash instead of with a card. This can be a good option for businesses that want to encourage cash transactions or are concerned about payment processing fees adding up. However, Lavu’s payment processing rates are quote-based, which makes it difficult to estimate processing costs in the first place.

Pros

  • 24/7 phone and email support.

  • Highly customizable POS platform for those with programming skills.

  • Restaurants can set up timed menu changes, start customers’ tabs on one register and cash them out at another.

  • Dual pricing program can help decrease payment processing fees.

Cons

  • No free plan options.

  • Cannot cancel subscription before term is up.

  • Does not list payment processing or monthly software fees.

All of Lavu’s plans let restaurant owners opt for “dual pricing” options that offer customers discounts for paying in cash instead of with a card. This can be a good option for businesses that want to encourage cash transactions or are concerned about payment processing fees adding up. However, Lavu’s payment processing rates are quote-based, which makes it difficult to estimate processing costs in the first place.

Our pick for

Mobile POS software

PayPal

PayPal Zettle

Payment processing fees

In-person: 2.29% + $0.09
Online: 3.49% + $0.09

Monthly fee

$0

BEST FIT FOR

Retail

Retail

Service-based

Service-based

E-commerce

E-commerce

Retail

Retail

Service-based

Service-based

E-commerce

E-commerce

Pros

  • No long-term contract or termination fees.

  • Accepts a variety of payment types, including Venmo and PayPal payments.

  • Inexpensive card reader with a keypad, plus built-in payment processing and a free mobile app lets you quickly accept in-person payments on the go.

  • Low in-person processing fees for a flat-rate processor.

Cons

  • Accepting online transactions involves additional monthly fees, depending on your gateway.

  • No offline mode.

PayPal's Zettle system stands out for its free software and no-contract business model, which takes some of the risk out of switching to a new POS system. This all-in-one mobile POS and payment processing system is built for quick and easy setup and integrates seamlessly with many big names in business-related software. Businesses only pay for hardware and payment processing.

Pros

  • No long-term contract or termination fees.

  • Accepts a variety of payment types, including Venmo and PayPal payments.

  • Inexpensive card reader with a keypad, plus built-in payment processing and a free mobile app lets you quickly accept in-person payments on the go.

  • Low in-person processing fees for a flat-rate processor.

Cons

  • Accepting online transactions involves additional monthly fees, depending on your gateway.

  • No offline mode.

PayPal's Zettle system stands out for its free software and no-contract business model, which takes some of the risk out of switching to a new POS system. This all-in-one mobile POS and payment processing system is built for quick and easy setup and integrates seamlessly with many big names in business-related software. Businesses only pay for hardware and payment processing.

Our pick for

Managing customer reviews

Payanywhere

Payanywhere POS

Payment processing fees

In-person: 2.69% + $0.00
Online: 3.49% + $0.19

Monthly fee

$0

and up.

BEST FIT FOR

Retail

Retail

Quick-service restaurants

Quick-service restaurants

Bars and clubs

Bars and clubs

Consulting

Consulting

Mobile businesses

Mobile businesses

Food trucks

Food trucks

Retail

Retail

Quick-service restaurants

Quick-service restaurants

Bars and clubs

Bars and clubs

Consulting

Consulting

Mobile businesses

Mobile businesses

Food trucks

Food trucks

Pros

  • Offers a free software plan for its card reader.

  • 24/7 support.

  • Reputation management tools help you monitor online reviews about your business.

  • Free same-day deposits.

Cons

  • Online payment processing rates are expensive.

  • Charges setup fee for more robust POS system setups.

  • Contract requirements may vary by business.

  • Limited integrations outside of QuickBooks Online.

Payanywhere stands out for its reputation management platform that helps you monitor online reviews from Google and social media, and respond to them all from one place. You can also use it to create competitor profiles and stay up to date with how other businesses in your area are performing.

The POS system offers straightforward, competitive in-person processing rates and a range of POS hardware options, from a mobile card reader to a countertop system with a customer-facing screen. You can also access tools for reputation management, reporting, invoicing and employee management.

Pros

  • Offers a free software plan for its card reader.

  • 24/7 support.

  • Reputation management tools help you monitor online reviews about your business.

  • Free same-day deposits.

Cons

  • Online payment processing rates are expensive.

  • Charges setup fee for more robust POS system setups.

  • Contract requirements may vary by business.

  • Limited integrations outside of QuickBooks Online.

Payanywhere stands out for its reputation management platform that helps you monitor online reviews from Google and social media, and respond to them all from one place. You can also use it to create competitor profiles and stay up to date with how other businesses in your area are performing.

The POS system offers straightforward, competitive in-person processing rates and a range of POS hardware options, from a mobile card reader to a countertop system with a customer-facing screen. You can also access tools for reputation management, reporting, invoicing and employee management.

What is a POS system?

A POS system makes it possible for your business to accept payments from customers during the checkout process. It can take the form of a countertop register with a cash drawer or a handheld device with a credit card reader, depending on whether you need to complete sales on the go. The system includes the POS hardware itself and the software you use to enter item prices and collect data on your sales, inventory, returns, etc. Strictly online businesses usually do not need hardware.

Providers may offer their own hardware options, like POS terminals with customer displays, receipt printers and cash drawers. Or, in some cases, you can simply download POS software to an iPad or tablet for a simpler, more portable solution. Similar to POS hardware, POS software varies in complexity and may include features specific to your industry.

Info icon

Learn more about what a POS system does: What is a point-of-sale system?

How much does a POS system cost?

The total cost of a POS system is made up of multiple components that vary in price. You can expect to pay monthly software, payment processing and hardware fees. Beyond those, look out for PCI compliance costs, high chargeback fees and early termination fees.
Couple of hands typing on a laptop.
Software subscriptionsMany POS systems run on cloud-based software that requires you to sign up for a monthly subscription. Some basic plans are free or start at $10 per month. Other plans are more expensive and cost upward of $199 per month. You might receive a discount by paying annually instead of monthly.
Hand holding a credit card.
Payment processing feesEvery time you accept a debit or credit card payment, you’ll pay a transaction fee, usually around 2.5% to 3% of the transaction, plus 10 to 30 cents. Prices vary depending on the type of card, whether it’s being accepted in person or online and whether the processor charges flat-rate or interchange-plus fees.
Hand with blue calculator.
Hardware costsPOS system providers might offer a free basic card reader that you can operate using a phone or tablet. Others may require proprietary hardware or a more robust POS terminal, which can cost hundreds of dollars. POS accessories, including receipt printers, cash drawers and barcode scanners, may cost extra.
Woman sitting on top of some coins.
Add-onsIf you want multiple registers, have more than one location or exceed a certain amount of revenue each month, a basic plan might not cut it. More advanced features, such as inventory management and loyalty programs, may also cost extra.

POS system features

Ultimately, the POS features you need depend largely on your industry. Here are several universal software and hardware features to look for in a POS system, as well as some industry-specific capabilities you might consider.

POS software features

  • Online store options: Giving customers the option to make purchases or place orders online can help bring you more business. Make sure your POS system accommodates all of your sales channels, whether they’re in-person, online or both.

  • Reporting: Regardless of your industry, you want a POS system that can generate reports on your sales, so that you can see which items or services are most profitable for your business and popular among your customers.

  • Robust customer support: While some answers might be easy to find online, it’s nice to be able to talk to someone who can help you troubleshoot when you need it. Look for live chat and/or phone support options and verify that they’ll be available during your business’s normal hours.

  • Inventory management: Restaurants and retail stores need to keep track of how many items they have on hand and when it’s time to reorder. For a more detailed list of options, see NerdWallet’s picks for the best inventory POS systems.

  • Multi-location management: You want to use the same POS system across all of your business’s locations, so that you easily track inventory, menus or service in multiple areas. Multi-location management also lets you set different prices and tax rules for each location, and run reports to see how each location is performing.

  • Table or menu management: If you own a busy restaurant, this one is important. These features let you view the status of tables in your restaurant, see how long it takes to turn tables, update menus and track when you run out of certain items.

  • Loyalty program: Although they typically cost extra, loyalty programs can help re-engage your customers with a point- or discount-earning system that gives them a reason to keep coming back. You can also use them to send custom discounts for birthdays and other special events.

POS hardware features

  • Mobility: Do you need a full countertop POS terminal, a pocket-sized card reader or something in between? Maybe your business sells items mostly online but occasionally needs to process transactions at a pop-up event. A simple card reader may be sufficient in that situation. However, a brick-and-mortar retail POS system probably needs a countertop terminal, while restaurants might need a handheld touchscreen device that lets employees take orders and process payments tableside.

  • Accessories: Common POS accessories include cash drawers, receipt printers and barcode scanners. Some POS system providers offer hardware bundles that include everything you need, while others function in a more a-la-carte manner.

  • Durability: Depending on your business, you’ll want to see whether the POS hardware you’re considering is spill-proof and/or heat-proof. This is especially advantageous for busy restaurant settings.

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Nerdy Tip

If you’re trying to decide between two or three different POS systems, ask local business owners in your industry what they use. Pairing our product comparisons with those business owners’ real-life experiences may help you tip the scale. Chances are, local business owners’ day-to-day interactions with a POS will provide insight into a system’s overall ease of use and its unforeseen downsides, as well as how easy it is to get a hold of customer service in your area.

How to choose a POS system

Finding the right POS system for your business comes down to these key considerations.

1. Decide which POS software features you need

This will depend largely on what type of business you have, since many POS software plans are industry-specific. For example, restaurants may need table management and inventory management, while service-based businesses can benefit from the ability to schedule appointments. Decide which features are nonnegotiable for your business to help narrow your search.

2. Choose compatible POS hardware options

Common hardware options include card readers, countertop terminals, handheld terminals, receipt printers and barcode scanners. Service-based businesses, cafes and restaurants that accept tips might also want a customer-facing screen with preset gratuity options. Not all hardware and software products are compatible with each other, so the easiest way to ensure compatibility is to find a POS provider with everything your business needs.

3. Calculate upfront and ongoing costs

Hardware will likely be your biggest upfront POS cost, and you’ll want to factor in per-transaction payment processing costs, too. Some monthly POS software subscriptions are free, but if you want a more robust feature set, expect to pay a fee. You’ll also want to look out for additional costs, such as setup and PCI compliance fees.

4. Pay attention to contract periods

Not all POS providers require you to sign a contract, which gives you the flexibility to switch systems at any time. However, some companies require you to commit for at least a year. While that isn’t necessarily a deal breaker, you’ll want to be sure that the product will work for your business in the long term. Read the “terms and conditions” carefully and seek out product demos so you can test functionality before committing.

5. Confirm it integrates with your accounting software

To ensure a smooth setup process, your POS software should also integrate with your accounting software, so that your books are always up to date. For more options, see NerdWallet’s choices for the best POS systems that integrate with QuickBooks.

Benefits of using a POS system

Compared to traditional cash registers, POS systems typically have greater flexibility and include more business management features. Here are some of the advantages of going with the more modern POS option:

Portability

Tablet-based POS systems can sit on the countertop, accommodate mobile businesses that make sales on the go, or let employees ring customers up from anywhere in the store.

Robust feature sets

Many POS systems’ software plans go beyond basic sales tracking. They may include additional features like inventory management, employee time tracking and management, scheduling tools and customer loyalty programs.

Seamless integrations

You can sync POS software to your accounting software to minimize manual data entry.

Types of POS systems

There’s no shortage of options when you’re comparing POS systems, and identifying main differentiating factors can help you determine which is best for your business.

Free vs. paid POS software.

Multiple POS system providers offer free POS software that includes the basics and can help keep costs down. However, you will still need to factor in payment processing fees and hardware costs, if you plan to accept payments in person.

Online vs. in-store POS systems.

Different POS systems accommodate different types of sales channels. Some specialize in e-commerce sales and even double as e-commerce platforms, while others focus more on in-person sales.

Industry-specific vs. universal POS systems.

Certain POS systems are made for a particular type of industry, usually restaurants or retail, and offer specialized features. Providers’ websites typically let you know which industries they target.

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Methodology

NerdWallet’s editorial team analyzes small-business POS systems across six key categories and more than 30 subcategories by gathering data from company websites, speaking with company representatives and testing out user interfaces ourselves when possible. We fact-check these data points regularly to ensure accuracy.

The category breakdown

System capabilities (38.5%)

Cost (29.5%)

Pricing transparency (11.5%)

Integrations (9%)

Customer service (7%)

Contract requirements and free trial periods (4.5%)

What our star ratings mean

POS systems that receive 5 stars are exceptional and work for a variety of different businesses that sell both online and in person. They have competitive processing rates and typically offer a free software plan that’s packed with useful features.

Compare more POS systems

If you’d like to shop for POS systems by industry or hardware preference, check out NerdWallet’s picks for:

Best POS systems by hardware

Frequently asked questions

A POS system is a combination of hardware and software that enables a business to accept payment for a transaction. Many POS systems, however, often do much more than process payments. They may have the capability to track inventory, manage employees, sync with popular payroll and accounting software, build customer profiles, offer loyalty programs and additional features.

An example of a simple POS system that’s quite common these days would be a credit card reader attached to a smartphone; this mobile POS system allows a transaction to be completed with the swipe of a card through a card reader and payment software accessed through the phone. An example of a more complex, feature-rich POS system would be a full set of POS hardware that includes a terminal, cash drawer, barcode scanner and receipt printer with accompanying software that enables business management.

A POS payment is taken at the time of a sales transaction. Payment may be made in person, using cash, a credit or debit card or a digital wallet, or online, depending on the specific setup of the business. If a card is used for payment, whether in person or online, the merchant will be charged a processing fee based on the card used, the issuing bank of the card and the payment processor’s own fee.