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Finding the best point of sale system, or POS system as they are commonly known, can be essential to the smooth running of your small business. These point of sale systems are made up of a combination of hardware and software, with card machines, receipt printers and advanced features like e-commerce tools all working together to conduct, manage and analyse your sales transactions.
We’ve looked at seven of the most popular POS systems for small businesses and evaluated their pros and cons, examining costs, hardware and extra features in order to find the best POS systems on the market. All prices exclude VAT unless stated otherwise
Top 6 Best POS Providers – November 2024
This top 6 is from 7 POS system providers that NerdWallet evaluated. Others are available. Find out how we use ‘best’ and our guide to ratings.
All hardware prices exclude VAT except for Lightspeed.
Top 6 Best POS Providers
This top 6 is from 7 POS system providers that NerdWallet evaluated. Others are available. Find out how we use ‘best’ and our guide to ratings.
Best all-rounder
Square POS Systems
From free
£19
1.75%
From 1.4% (+25p)
- Inventory management
- CRM
- e-commerce
- Integrated accounting software
NerdWallet's Review Summary
Square is a dedicated POS system provider with an international customer base of over four million sellers. The company, which is owned by Block, Inc. (brainchild of Twitter (now X) co-founder Jack Dorsey) aims to provide POS services to all size businesses, from one-person operations through to major multinational chains. As such, it provides a great variety of monthly subscriptions, hardware and business tools.
Square key features:
Cheap tech: The 2nd generation Square Reader gives merchants a way to accept card payments for just £19, making it some of the lowest cost hardware around.
Business tools: Users can access a slew of business tools, such as web design and inventory management systems.
Free option: With three pricing tiers for monthly fees, Square offers merchants a chance to access a POS system without having to pay a monthly fee.
Square Pricing
Monthly fees: Free – £64 per month
Transaction processing: 1.75% (in person), 1.4% + 25p (online UK cards)
Hardware*: Square Reader – £19, Square Terminal – £149, Square Register – £599
Best for small businesses
SumUp POS Systems
From free
From £25
From 0.99%
2.5%
- Inventory management
- e-commerce
- Integrated accounting software
NerdWallet's Review Summary
SumUp is a POS provider that focuses on providing services for small business owners. Founded back in 2012, the company is now a provider of choice for over 4 million merchants. In addition to its POS offering, SumUp provides business bank accounts and cash advances, which could make it a one-stop shop for your business.
SumUp key features:
Business banking: SumUp also provides a business bank account. Using this account, you can access lower transaction fees and receive the proceeds from sales in just one day, even on the weekend.
POS hardware options: SumUp’s extensive hardware options range from pocket-sized card readers that can run on in-built mobile data, to self-service kiosks that allow customers to key in their own orders.
E-commerce functionality: SumUp customers can build an online store with the web builder tool, while SumUp can also integrate with e-commerce platforms like Wix and WooCommerce.
SumUp Pricing
Monthly fees: Free – £19 per month
Transaction processing: 1.69% (in person), 2.5% (online)
Hardware*: Air Card Reader – £25, Solo Card Reader and Printer – £109, POS Lite tablet and card reader – £349
AirPOS POS Systems
Free
£29
1.4% (+14p)
1.4% (+14p)
- Integrated accounting software
NerdWallet's Review Summary
AirPOS is a POS system provider that aims to help UK and Ireland-based independent retailers with a simple and free offering. Though lower in profile than some of the competition, AirPOS offers competitive pricing and an emphasis on transparency. It is well received by customers, with a strong 4.5 rating on Trustpilot.
AirPOS key features:
Low cost: With no monthly fees and cheap transaction processing fees, AirPOS could appeal to smaller businesses trying to keep control of their spending.
Hardware: Basic hardware from AirPOS is among the cheapest available directly from a POS provider.
Payment integrations: AirPOS customers will probably need to integrate their account with SumUp, Zettle or Shopify to get the most out of the system. While these providers all offer free packages, having to juggle multiple accounts means extra admin.
AirPOS Pricing
Monthly fees: Free
Transaction processing: 1.4% + 14p (for new businesses), from 0.8% (for existing businesses)
Hardware*: AirPOS Pay Card Reader – £29, AirPOS Pay Card Terminal – £150, AirPOS Pay Starter Bundle – £399
Best for growing businesses
Lightspeed POS Systems
From £89
£95
1.60%
1.90% (+25p)
- Inventory management
- CRM (only with Core or Plus account)
- e-commerce
- Integrated accounting software
NerdWallet's Review Summary
Lightspeed, formerly known as Vend, is a major international POS system provider, serving customers in more than 110 countries. With a particular emphasis on helping businesses to achieve growth, Lightspeed provides tailored solutions for different business types and a large suite of business tools. This doesn’t come cheap though, as Lightspeed is one of the more expensive providers on the market.
Lightspeed key features:
High fees: Lightspeed’s monthly subscription fees are some of the highest out there, with the cheapest available retail package costing £89* when paid monthly.
POS software features: Merchants using Lightspeed can access a wealth of complementary tools, including inventory management, supplier catalogues and built-in ecommerce functionality.
Tailored solutions: With POS systems designed specifically for retail, restaurants and even golf clubs, Lightspeed has packages and tools for a wide array of businesses.
Lightspeed Pricing
Monthly fees: £89*-plus per month
Transaction processing: 1.6% (card present), 1.9% + 25p (card not present)
Hardware: Wisepad 3 Card Reader – £95*, WisePOS E Card Reader – £299*, Apple iPad – £349*
VAT included in Lightspeed’s hardware costs.
Best for new businesses
Tide POS Systems
Free
£89
1.50%
1.50%
- Integrated accounting software
NerdWallet's Review Summary
UK-based fintech outfit Tide aims to give small business owners everything they need in one place. Along with its POS system, Tide offers a business bank account, accounting tools and business borrowing options. They can even help new business owners to register with Companies House.
Tide key features:
Transactions in transit: Though Tide simple hardware offering consists of just two different card readers, both include unlimited 4G data for life and so can be easily used on the go.
Mandatory banking: Tide offers a free business bank account, which customers must use in order to access the company’s POS system offering.
Extra features: Tide’s POS offering does not include many extras, though small business accounting tools and help with registering your business are available for a fee.
Tide Pricing
Monthly fees: Free
Transaction processing: 1.5% (card reader transactions), 1.5% (via payment links)
Hardware*: Tide Card Reader – £89, Tide Card Reader Plus – £99
Zettle (by PayPal) POS Systems
Free
£29
1.75%
2.5%
- Inventory management
- Integrated accounting software
NerdWallet's Review Summary
Zettle, formerly known as iZettle, is an international POS system provider owned by PayPal, having been acquired by the online payments giant back in 2018. The company prioritises a simple model, with no monthly payments or contracts and a simple charge per transaction. However, bigger businesses with more than £10,000 per month in sales can be eligible for exclusive pricing deals.
Zettle key features:
Contactless payments via app: Downloading the Zettle app, which is available for iOS or Android phones, lets merchants take contactless payments on their mobile with no card reader required.
Custom Rates: Businesses with more than £10,000 per month in sales can discuss a custom rates plan with Zettle’s sales team.
Ways to pay: Zettle includes functionality for building and sending invoices, constructing payment links and gift cards, giving businesses many payment options.
Zettle Pricing
Monthly fees: Free
Transaction processing: 1.75% (card payments), 2.5% (via payment links)
Hardware*: Zettle Card Reader 2 – £29, Zettle Payment Terminal – £149, Zettle Mini Store Kit – £169
What is a POS system?
Simply put, a POS or point-of-sale system is the technology that allows businesses to complete sales transactions. The oldest and most basic forms of this system would consist of unintegrated technology, such as cash registers and receipt printers, as well as manual processes in order to complete and log transactions.
However, POS systems have become increasingly sophisticated and user-friendly. For example, it is now common for solutions to allow businesses not only to complete customer transactions but also to automatically track and manage their inventory, compile sales data and build profiles of individual customers.
This might sound complicated, but proper use of these systems can take a lot of the stress out of running a business.
You’re less likely to run out of inventory at a crucial moment if your POS system reminds you when you need to restock. You might easily spot product opportunities based on sales data your system automatically tracks. Individual customers are more likely to give you repeat business if they receive specially targeted marketing based on a profile your POS system has compiled.
With different providers and systems offering varied levels of sophistication and business tools, picking the right option to make your life easier can be a challenge.
» MORE: What is a POS system?
How do POS systems work?
A point of sale, or POS, system allows merchants to take payments from customers. If you want your business to make money, this is obviously a key piece of infrastructure.
The main thing to remember is that POS systems are not generally a single piece of equipment. Instead, a POS system consists of physical equipment like cash registers, card machines, barcode scanners and tablet computers, as well as a piece of software that processes transactions and tracks data.
To get into the nitty-gritty of how a POS system works, let’s examine how it would deal with a basic transaction:
- A customer is ready to make a purchase and arrives at your physical or virtual checkout (depending on whether the sale is from an online or brick-and-mortar shop).
- The total cost of the customer’s basket is totted up by your POS system, including additional taxes and delivery fees if applicable, before presenting them with a price.
- The customer pays, either by cash, tapping their card or digital wallet on to a payment terminal, entering their PIN (personal identification number) or entering their payment details into an online checkout window.
- The POS system will process and (hopefully) approve the payment, before logging details of the transaction, such as the amount, time and date. At this point, a processing fee will be taken from the transaction by the POS system provider. It may additionally change your inventory information in order to give you an up-to-date picture of how many goods you have in stock.
- Following completion of the transaction, the customer is offered a receipt via email or on paper. They are also given the correct change if they chose to pay in cash.
That’s the basic angle of what a POS system can do for a business. However, some POS systems contain many additional features that business owners can find useful.
For example, some include customer relationship management (CRM) tools, which track individual customers’ purchases and preferences. This can help you to conduct more successfully targeted marketing campaigns and loyalty programmes.
» MORE: What to do if your small business isn’t getting paid on time
How to choose a POS system?
Picking the right POS system is an important decision for any business, as the right fit could save you a lot of money, time and effort. When trying to choose, evaluate each part of a provider’s offering.
If you are not sure which system to choose, affordability can be a good place to start. Some providers charge no monthly fee and offer low-cost hardware.
Additionally, it is important to consider whether a POS system will work for your type of business.
If your business relies heavily on an online store, you probably do not want to be stuck relying on a POS provider with weak or limited e-commerce features. If your business has a hectic brick-and-mortar location, where multiple customers need to conduct several complex transactions at once, consider a provider that can offer multiple payment terminals and sophisticated retail kits.
On the other hand, if your business is small or taking payments is not a common occurrence, splashing out on a complex all-in-one solution could be a waste of your money.
Customer service should also be a consideration when searching for the right POS system. Look for a provider where your preferred method of contact, whether it be phone, online chat or email, is supported.
You can gain insight into how helpful a provider’s customer service team is by reading customer reviews on sites such as Trustpilot. These reviews can vary significantly, with Lightspeed scoring 4.4 stars on Trustpilot and Zettle netting just 2.9.
» MORE: Credit card processing fees 2024
Duncan Ferris, Lead Writer and Business Expert at NerdWallet
What Our Nerds Say
“Some plans from POS providers charge significantly more for “card not present” transactions. This means you will get to keep less from payments made over the phone or online. This might not be a problem for some, but if your business leans heavily into e-commerce try to find a provider that offers these transactions at the cheapest rate.”
Types of POS system
Different POS providers often have a range of solutions for various types of businesses. Bear in mind that a single POS system may fall into multiple of the categories we outline here. For example, a POS system might simultaneously be a cloud and retail POS. Below is a breakdown of some of the most common variations:
- Retail POS: A system designed for retail often includes features such as inventory management and e-commerce integration. Hardware, such as barcode scanners and cash drawers, are also more regularly part of a retail POS, where payments are likely to be made at a purpose-built counter.
- Restaurant POS: POS systems for restaurants are more likely to track ingredients and expiry dates. They may also include options for customisation of different menu items and equipment that is built to withstand the kinds of splash damage more commonly seen in restaurants. Speaking of hardware, restaurant POS systems are also more likely to incorporate portable readers and tablets so that servers can take orders and payments anywhere in the restaurant.
- Multichannel POS: Multichannel systems are designed to handle customer orders from a number of different channels, including in store, online and via mobile. They might include features that allow for simplified payments, returns and customer profiles across all different channels. A multichannel POS may suit your business if you sell products online and in person.
- Cloud POS: Modern POS systems store a lot of data, such as transaction information, sales data and customer profiles. Some POS systems store this data locally, meaning that damage or loss of equipment can result in crucial information being lost. Cloud POS systems store the information in the cloud, which means it is safe in an off-site third party server. However, this does mean you will need an internet connection in order to access this information.
- Mobile POS: POS systems that can be taken on the move to function wirelessly are known as mobile POS. These systems will rely on a mobile device, such as a smartphone, tablet or 4G-enabled card reader, and allow business owners who spend a lot of time on the move to be flexible about where they take their payments.
- Tablet POS: Like mobile POS systems, tablet-based offerings have the advantage of allowing you to take your POS on the move.In the same way as mobile POS systems, they also take advantage of familiar technology, such as iPads or android tablets, though they may not fit in your pocket quite as well.
- Legacy POS: Legacy POS is a term used to refer to systems that are a little more old-fashioned and basic than the newest tech. They are likely to rely heavily on purpose-built hardware, such as countertop tills and cash drawers. These systems may also have little to no functionality when it comes to inventory management, customer relationship management. However, they will store any data they do collect locally, meaning you will not be reliant on an internet connection.
It’s also worth noting that some providers focus almost entirely on one industry. For example, Toast and TouchBistro specifically cater for restaurants with their POS systems.
» MORE: What is a merchant account?
How to use a POS system
Different POS systems work in different ways, but most will provide you with some sort of demonstration, training or tutorials to get you started.
Typically, you will need to set up some hardware, download a software application, key in your products, create user accounts and establish different payment methods. If you find the process too complicated, most POS system providers will be happy to help.
Once you are set up and have used your provider’s various training resources, you should be ready to use your POS system. If you are still unsure of how to get the most out of your chosen solution, check online and on YouTube for additional information or contact your provider directly.
Pros and Cons of a POS system
Pros
- It makes completing customer transactions easy.
- You’ll save time otherwise spent on dull admin work.
- It keeps track of your inventory.
- It helps to improve customer experience.
- Product and customer insights it offerst can help improve sales.
Cons
- It may require an upfront investment and a monthly fee.
- You and any employees you have might require training.
POS system methodology
NerdWallet evaluated and reviewed eight POS systems from major international and smaller domestic companies. Collectively, these POS systems represent some of the most popular and well-known products of their kind.
We considered six data points for each account, using criteria that we think should matter most to small business owners, scoring the different providers on subscription fees, transaction fees and additional features, among other factors. This information was gathered from each financial institution’s website and company representatives. In addition, data is collected regularly and reviewed by our editorial team for consistency and accuracy.
Using the same data across all products and features we were able to create star ratings presented on a scale of one to five stars, where a one-star score represents ‘poor’ and a five-star score represents ‘excellent’.
» MORE: What are high-risk merchant accounts?
POS system FAQs
While no POS system is completely free (as all charge for processing transactions), some do have plans that do not charge a monthly fee. Square is our highest rated POS system with a free plan, but it is important to consider which POS system is right for your business and its unique set of circumstances.
On the surface, it may appear that a POS system is simply for processing customer payments. While that is a core capability of the technology, many solutions can do much more as well. A sophisticated POS system can:
- process payments (in-person and online)
- offer and process tips
- provide receipts
- manage inventory
- manage employees
- build customer relationships
Some systems can even do more than the above, as new tools are constantly being developed to help retail businesses grow and thrive.
If you are looking for the simplest POS system solution to use, you might be best suited to a basic package that includes a payment terminal and some basic software. Among the most bare-bones solutions are Tide’s simple card readers and Square’s free plan.
Do bear in mind that you could miss out on advanced features by choosing a simplified plan.
POS systems can vary considerably in price depending on what you are looking for.
For merchants who want a simple solution that allows them to simply take payments, there are providers who can provide equipment for less than £50 and charge no monthly fee. That just means worrying about transaction fees.
On the other hand, businesses that require a more comprehensive solution can reasonably expect to part with a more sizeable chunk of cash. A provider like Lightspeed charges a monthly fee of £89 including VAT for its cheapest package, but business owners receive a free register and there are a huge amount of additional business tools offered by the company as part of the deal.
Some POS providers may also offer free trials, making the initial period considerably cheaper.
This will depend on the size of your business. If you have one location and peak hours are not particularly busy, then a single POS machine will probably suffice. However, long queues could be an issue if your business is often packed with customers and having multiple locations makes more machines a necessity.
On the other hand, if you take payments rarely even one payment terminal might be unnecessary. That’s the case because some POS providers, like Zettle, allow you to take payments through a smartphone app.
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