If you sell products or services, you will need a way to calculate price totals and process customer payments. While you could do this with manual calculations and a simple cash register, many businesses find it useful to automate the process with a point-of-sale (POS) system. Many great POS systems are available, each with its own hardware and software features. To help you identify the right POS system for your business, I’ve conducted hours of research to determine the best solutions on the market.
What Is a POS system?
A POS system is a combination of hardware and software that is used to calculate the total of products and services sold and to process customer payments. Additionally, many POS systems have features that help you manage employees, track and manage inventory, implement customer loyalty programs, take online orders and generate analytical reports. POS systems typically integrate with third-party applications like accounting software, online ordering platforms and other business tools to streamline business operations.
Best POS Systems
Our Top Picks for 2024 | |||||||
Best For | All-In-One POS | Online Restaurant Ordering | Retail | Customer Experience | Scalability | Add-On Services | Credit Card Processing |
Starting Price | $9.95 per month | $0 per month | $69 per month | $69 per month | $39 per month | $59 per month | $0 per month |
Free Trial | Yes | No | Yes | No | Yes | No | No |
Third-party payment processing compatible | No | No | Yes | Yes | Yes | Yes | No |
Industries served | Retail, restaurants, e-commerce, service businesses | Restaurants | Retail, restaurants, golf organizations | Restaurants | Retail, e-commerce, hospitality | Restaurants | Retail, restaurants |
Rating |
CloverBest All-in-One POS System
Pros & Cons
Our Review for Clover
Clover is a comprehensive POS system with multiple POS software plans and hardware options. Whether you are a small startup that only needs a card reader or a larger organization that needs a comprehensive terminal station, Clover has you covered. Unlike some other solutions I reviewed, Clover can support a wide variety of industries, including restaurants, retailers, e-commerce and service businesses. Its software has essential POS features to help you track sales, manage employees and do inventory. If needed, you can also take advantage of online ordering capabilities and loyalty programs. I like that Clover has multiple security measures like end-to-end encryption, fingerprint log-ins and integrated EMV chip sensors.
ToastBest for Online Restaurant Ordering
Pros & Cons
Our Review for Toast
Toast is a restaurant-specific POS system with multiple POS plans and hardware options. It relies on cloud-based software that can be operated with Wi-Fi; however, it also has an offline mode so that you can continue operations even if you temporarily lose your internet connection. Toast has all the features needed to ring up food sales, process payments, track inventory, schedule employees and manage marketing and loyalty programs. It can even integrate with popular third-party applications like QuickBooks and Grubhub.
The feature I was most impressed with was Toast’s online ordering capabilities. With the Toast POS system, restaurants can take advantage of order scheduling, dynamic throttling, curbside pickup and contactless delivery. Unlike some competitors, its online ordering platform is commission-free, thus saving your restaurant money on online orders.
LightspeedBest for Retail
Pros & Cons
Our Review for Lightspeed
If your retail business is looking for a robust POS solution, Lightspeed is an excellent choice. The vendor offers multiple-tiered retail POS plans, so you can choose a package that matches your needs and budget. Each plan includes one register, but you can easily add on other Lightspeed hardware and peripherals to customize your setup. Most plans include e-commerce features, allowing you to manage your online store and in-person sales from one centralized platform. I like that the system can be used to track and manage multiple store locations.
Inventory management can be a headache for many retailers, but Lightspeed simplifies the process through its preloaded catalog with thousands of items. This helps retailers get up and running in no time. Lightspeed also has an integrated payments platform, omnichannel loyalty plans and advanced reporting tools.
CakeBest for Customer Experience
Pros & Cons
Our Review for Cake
Cake by Mad Mobile has many restaurant-specific POS features to help elevate your customers’ experience. For example, it has a guest manager tool for accurate reservation and waitlist management. Cake allows your servers to take tableside orders and payments, which not only speeds up service but also reduces errors and chargebacks. When a customer’s order is ready, the Cake system will notify the server, speeding up their service further. Since many customers prefer contactless service, Cake can help with this by allowing customers to order food or pay via self-service kiosks. You can also meet evolving customer demands by offering online ordering with delivery and contactless pickup.
ShopifyBest for Scalability
Pros & Cons
Our Review for Shopify
Shopify is a highly scalable POS platform with a range of POS features that meet the needs of any size business. There are three POS plans (Basic, Shopify and Advanced), each with tiered pricing and features. You can choose between monthly and annual pricing, and you can upgrade, downgrade or cancel your plan at any time. I also like that it has a free trial, which isn’t something I saw many competitors offer.
Shopify has POS features for inventory management, gift cards, data reporting, marketing automation, product shipping and tax liability tracking. If your company wants to scale internationally, Shopify has international market management features to support that as well.
LavuBest for Add-on Services
Pros & Cons
Our Review for Lavu
Lavu is an iPad-based POS system that can serve a variety of restaurant types. It has three tiered plans with dozens of add-on options, so it’s easy to scale your POS platform to meet your needs. For example, you can add hardware like terminals, kitchen display systems and a contactless pay kiosk. You can also add useful POS features to support loyalty programs, online ordering, tableside ordering and gift cards. Lavu has API access, and you can add essential integrations like QuickBooks, Xero, DoorDash and Uber Eats.
Even though Lavu offers many add-ons, it’s not difficult to set up. A Lavu representative will work with you one-on-one to ensure your POS system is implemented and configured the way you need it to be.
Helcim POSBest for Credit Card Processing
Pros & Cons
Our Review for Helcim POS
Helcim is a user-friendly payment processing solution with POS features. Unlike some competitors, Helcim doesn’t charge any monthly, setup, deposit, user, cancellation or Payment Card Industry fees. Instead, it just charges a fee per transaction. Your transaction rates are based on your monthly credit card volume, so the more you process, the more you save. If you want to pair Helcim’s payment processing service with its hardware, you can purchase the Helcim Card Reader for on-the-go payments or the Helcim Smart Terminal for a touchscreen terminal with built-in POS features. Helcim also offers a virtual terminal if you want to be able to accept payments from whatever internet-connected device you may have.
Point-of-Sale System Cost
The total cost of a POS system will be a combination of the software, hardware and payment processing fees.
Software Fees
POS software is typically charged as a monthly subscription, costing between $25 and $300 per month. This rate will largely depend on what features you need as many POS system vendors have tiered plans and add-on features like customer loyalty and online ordering. Some POS system providers offer free software, but this typically requires you to use them for payment processing too.
Hardware Fees
POS hardware fees will vary based on what hardware and peripheral equipment you need. For example, if you just need a simple way to ring up sales, you can choose a cloud-based POS software that can be used with any internet-connected device. This way, you can use whatever laptop or mobile device you currently have instead of purchasing POS hardware. The options usually break down as follows:
- Basic payment processing: If you want to use your own device and then add on a card reader to process payments, this setup typically costs between $20 and $100.
- Small business hardware: If you’re a small business looking to use your own device and add on peripherals, such as tablet stand, cash drawer and receipt printer, you can expect to pay between $600 and $1,200.
- Comprehensive hardware: If you’re looking for a more robust POS register system, this can cost up to $1,200 per register, plus more for any additional equipment like display screens, barcode scanners and kitchen printers.
Payment Processing Fees
Although payment processing fees aren’t typically included in the monthly subscription cost of a POS plan, they are additional costs to keep in mind. The average credit card processing fee is 1.3% to 3.5% per transaction. This might not seem like much, but it can add up quickly. Some POS vendors require you to use their payment processing system while others allow you to partner with a third-party processor. However, some charge additional fees to use external payment processors.
How to Choose a POS System
Whether you are in the market as a first-time POS system buyer or you’re looking to upgrade your current POS setup, there are a few steps you can take to ensure you find the right solution:
- Identify your POS needs: There are many POS hardware and software variations to choose from, so it can be helpful to first identify what your POS needs are. Determine what type of functions you need the software to perform and what type of hardware and peripherals you will need (and what features and tools are “nice to have”).
- Establish a POS budget: Now that you have a general idea of how much POS systems cost and know what functionality you want, establish a realistic budget that you can afford for a POS system. If you have a limited budget right now, consider what your budget might be when you scale larger. You will want to find a POS system that fits within both means.
- Conduct market research: Research the various POS systems on the market to see which meet your financial and operational needs. Some vendors cater to a specific industry, such as restaurants, retailers and e-commerce, so you will want to confirm they serve your sector. You can check online guides (like this one) to compare different options.
- Contact vendors for demos: When you have a list of top POS providers that fit your criteria, reach out to their sales teams to view product demos. This will give you firsthand a look at how the software is laid out and what features it has. This is also your chance to ask any questions you may have.
- Evaluate pricing and contracts: When you’ve conducted all of your research and demos, now is the time to compare your top options. Look at each solution’s pricing, hardware and software capabilities, payment processing, usability and customer support. With all the knowledge and insight you’ve gained through this process, ask yourself: Which one is best for your business?
Methodology
To find the best point-of-sale systems on the market, I started by researching and analyzing dozens of POS solutions. I discovered who the key players are through industry experience and market research and then I did a deep dive into each POS provider. I looked at company websites, competitor comparison pages, the Better Business Bureau, accreditation sites and customer reviews.
Through this research, I was able to examine and compare pricing, contract requirements, industries served, POS features, POS hardware, payment processing, third-party integration capabilities, security and customer support. I also participated in guided tours and product demos to gain firsthand experience with each platform’s functionality and ease of use.
POS System FAQs
What types of businesses need a POS system?
Any business that sells products or services needs some sort of POS system or register to process customer payments. This includes restaurants, retailers, e-commerce businesses and more. How simple or complex your POS setup is will depend on your needs and your budget.
What is the difference between a POS system and a cash register?
While POS systems and traditional cash registers can both perform basic functions like ringing up sales and processing payments, POS systems are more advanced, offering features like sales tracking, cloud data storage, inventory tracking, employee management, report generation and third-party application integrations.
How long does it take to install a POS system?
A POS system can take anywhere from a couple of hours to a couple of days to set up. This will largely depend on the size of your business, the complexity of the software and the customizations needed.
What are the disadvantages of a POS system?
POS systems provide many benefits, but they aren’t without disadvantages. The biggest downside is their expense. With hardware, software and payment processing fees, the monthly cost of a POS system can add up quickly. If cost is a barrier to entry for you, start small with POS software that can work on a mobile device you already own.
Other potential limitations can include security risks and malware vulnerability. However, these can be mitigated by partnering with a trusted POS system provider like the ones highlighted above.
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