Featured Partners
1
Clover
$14.95 per month (plus hardware)
90 days
Versatile POS, invoicing, employee management
2
Toast
$0
No
POS built specifically for restaurants, payroll, online ordering, team and inventory management
3
TouchBistro
$69 per month (plus hardware)
No
Cloud-based POS, restaurant, and guest management system; 24/7/365 support
4
Lightspeed
$109 per month per outlet
14 days
2.6% plus 10-cent processing fee, dedicated account manager, integrated payments
Compare the Best POS Systems For Small Business
Methodology
We evaluated the best POS systems for small businesses by analyzing key decision-making factors, including pricing, features, hardware, customer reviews, and transaction fees. Each system was tested to determine how well it supports small business needs, with particular attention to ease of use, scalability and industry-specific features.
| Decision Factor | Scoring Weight | Description |
|---|---|---|
| Consumer Sentiment | 40% | Feedback from small and midsized businesses using these POS systems on a day-to-day basis. |
| General Features | 27% | POS systems include all of the basics like payment processing, hardware options, inventory management and customer management. |
| Hardware | 15% | We evaluated each provider’s hardware requirements and how obtainable the setups are for SMBs. |
| Pricing and Value | 14% | We scrutinize the cost of each system, including monthly fees, transaction costs and hardware prices. |
| Transaction Fees | 4% | We analyzed every platform’s transaction fees. The lower the fees, the better the score. |
Our rankings reflect a mix of hands-on testing and research to ensure accuracy and relevance to small business owners.
How To Choose the Best Small Business POS System
Selecting the right POS system for your business is about more than just price. Here’s what to consider:
Essential POS Features
When it comes to running your business smoothly, your POS system needs to do more than just process payments. Let’s break down some must-have features and why they’re worth your attention.
- Inventory Management. Ever run out of a best-seller or find shelves stuffed with slow-moving products? A good POS system keeps you on top of your inventory, tracking stock levels in real-time. Systems like Lightspeed even handle automatic reorders, so you’re always stocked up without overdoing it. If your business deals with a lot of products, this feature can save you countless headaches.
- Customer Loyalty Tools. Bringing in new customers is great, but keeping them coming back? That’s where loyalty tools shine. Whether it’s a points system or exclusive discounts, programs like the ones from Lightspeed help you reward your best customers and keep them engaged. It’s an easy way to turn one-time buyers into loyal fans.
- Multichannel Capabilities. Selling online and in-store shouldn’t feel like running two separate businesses. That’s why systems such as Shopify POS are so handy—they let you sync inventory and sales across all your channels. Whether a customer shops online or walks into your store, everything runs seamlessly in the background.
- Reporting and Analytics. Want to know your best-selling item or when your store is busiest? Reporting tools make it easy to spot trends and adjust your strategy. Systems like Square offer dashboards that break everything down into digestible insights.
- Hardware Options. Every business has unique needs when it comes to hardware. A boutique shop might need a barcode scanner and receipt printer, while a food truck thrives on a mobile card reader.
- Employee Management. If you have a team, you’ll love a POS system that helps track hours, sales and even access permissions. Systems like Revel Systems make it easy to see who’s a top performer and where schedules might need adjusting.
- Payment Processing Flexibility. These days, customers expect you to accept more than just cash or cards. With options like mobile wallets and even Venmo, systems like PayPal POS ensure you’re covered. The more ways you can accept payments, the easier it is for your customers to buy from you.
By prioritizing these features, you can find a POS system that not only meets your current needs but also positions your business for future success.
Value
When choosing a POS system, it’s important to balance the cost against the features and benefits it provides. A low-cost solution might save you money upfront but lacks the tools your business needs to grow. On the flip side, a higher-priced system could offer robust functionality that saves you time and increases revenue in the long run.
For example, Shopify’s omnichannel capabilities justify its slightly higher fees for businesses managing both online and physical stores.
Think about the specific needs of your business. Are you running a seasonal operation or a side hustle? A no-monthly-fee option like PayPal POS might be perfect. On the other hand, if you’re running a high-traffic retail shop, spending more on a system like Lightspeed with advanced loyalty tools can help you build long-term customer relationships, which often outweigh the initial costs.
Here are a few tips to assess value:
- Calculate total costs. Don’t just look at the monthly fees—factor in hardware costs, transaction fees and any add-ons you may need.
- Match features to needs. Avoid paying for features you won’t use, but don’t skimp on tools that can streamline operations or boost revenue.
- Consider scalability. If you plan to expand your business, choose a system that can grow with you rather than replacing it later.
Ultimately, the best value comes from a system that solves your problems and helps your business thrive, even if it costs a bit more upfront.
Integration Capabilities
Modern businesses rely on a range of software tools, from accounting platforms to e-commerce websites. A POS system with strong integration capabilities can streamline operations by syncing with software like QuickBooks, WooCommerce or Mailchimp. For example, Shopify is designed to work seamlessly with its e-commerce platform. Look for systems that connect with the tools you already use or plan to adopt.
Mobile Functionality
For businesses on the go, mobile-friendly POS systems are essential. Whether you’re running a food truck, a pop-up shop or delivering services in the field, having a POS that works on a tablet or smartphone can make transactions seamless. Square leads the pack in mobile functionality with its easy-to-use mobile app and compact hardware. Consider whether your business needs flexibility beyond a fixed terminal.
Ease of Training
If you’re running a business with a high turnover rate or seasonal employees, the ease of training on a POS system is critical. A user-friendly interface can reduce onboarding time and mistakes, keeping your operations smooth. Systems like Square and PayPal POS are known for their intuitive designs, making them great choices for businesses with new or rotating staff.
Customer Support
When something goes wrong, you want help—fast. Customer support can make or break your experience with a POS system. Look for providers with 24/7 support, multiple communication channels (e.g., phone, chat, email) and quick response times.
Featured Partners
1
Clover
$14.95 per month (plus hardware)
90 days
Versatile POS, invoicing, employee management
2
Toast
$0
No
POS built specifically for restaurants, payroll, online ordering, team and inventory management
3
TouchBistro
$69 per month (plus hardware)
No
Cloud-based POS, restaurant, and guest management system; 24/7/365 support
4
Lightspeed
$109 per month per outlet
14 days
2.6% plus 10-cent processing fee, dedicated account manager, integrated payments
Which POS System Is Best for Your Small Business?
Choosing the right POS system depends on your business size, type and specific operational needs. Here’s a closer look at different scenarios and which systems work best:
For Small Businesses on a Budget
If you’re a small retailer, café or service provider just starting out, Square is an excellent option. It’s free to start with no monthly fees for basic functionality, and the hardware is affordable and portable. Square’s intuitive interface makes it easy for anyone to use, even without prior experience. Plus, as your business grows, you can add features such as payroll and marketing tools, making it a scalable choice.
For Growing or Multichannel Retailers
For businesses with a physical store and an online presence, Shopify POS is a game-changer. Its seamless integration with Shopify’s e-commerce platform allows you to manage inventory, sales and customer data across all channels from one system. This is particularly useful for retailers who want to create a unified shopping experience for their customers, whether they’re in-store or online.
For High-Volume or Inventory-Heavy Businesses
If your business relies heavily on inventory management, such as a warehouse or retail chain, Lightspeed is a standout choice. Its inventory tracking tools allow you to monitor stock levels, automate reordering and manage multiple locations.
For High-Risk or Niche Markets
Certain industries, like liquor stores or dispensaries, face unique challenges, including high-risk merchant status. Korona is a reliable solution for these businesses, offering fixed monthly pricing and unlimited user accounts. Its features are tailored to high-risk industries, ensuring compliance and smooth transactions.
For Occasional Sellers or Seasonal Operations
If your business operates sporadically—such as selling at fairs, pop-up events or as a side hustle—PayPal POS is a great fit. With no monthly fees and the ability to accept Venmo payments, it’s perfect for part-time or seasonal sellers who prioritize flexibility and simplicity.
By aligning your business goals with the strengths of these systems, you can find a POS solution that not only meets your current needs but grows with you over time.
Frequently Asked Questions (FAQs)
What is a POS system?
A point-of-sale (POS) system is a combination of hardware and software that businesses use to process sales transactions, track inventory and manage customer data. Modern POS systems often include features such as loyalty programs, reporting tools and e-commerce integrations.
What hardware do I need for a POS system?
Most POS systems require basic hardware like a tablet, card reader and receipt printer. For more complex operations, you may need additional equipment such as barcode scanners, cash drawers or kitchen display systems.
Can I use a POS system for online and in-person sales?
Yes, many POS systems, including Shopify and Square, integrate online and in-person sales into a single platform. This allows you to manage inventory, track sales and analyze performance seamlessly across both channels.
How much does a POS system cost?
The cost of a POS system varies widely, with basic systems starting at $0 and advanced setups costing $100 or more per month. Additional costs may include transaction fees, hardware and add-ons for extra features.
