Duncan Ferris
Hannah NemethFinding the best point of sale system, or POS system as they are commonly known, can be essential to the smooth running of your 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 nine 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 POS Systems: Summary
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
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
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 – £39, Solo Card Reader and Printer – £139, POS Lite tablet and card reader – £349
AirPOS POS Systems
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
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
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
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
Types of POS system
Different POS providers often have different solutions for various types of businesses. 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.
- 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.
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?
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.
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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