What Is a Point of Sale System?

Your point of sale (POS) system puts all your transaction data in one spot. Many programs provide tools to track inventory, manage employees, and see revenue data in real-time. POS solutions go beyond traditional registers to offer you various ways to accept payments from anywhere in your store. Small business owners use a POS system to better understand their sales trends, available inventory, and customers. Moreover, mobile solutions enhance the customer experience with quick checkout options and integrated customer programs.

What Does a POS System Include?

Today you can build a POS system that works for your store, so you’re not limited to just a cash register. Typical hardware for small businesses includes: A standalone POS cash register or an iPad system Cash drawer Receipt printer Credit card reader However, you can add self-service kiosks, mobile units, and customer displays to enhance the shopping and buying experiences.

What Are the Types of POS Systems?

Although retailers still rely on standalone systems, many prefer iPad solutions, which allow you to place the iPad on a secure stand or carry it throughout the store. Mobile units or self-service kiosks are especially crucial for curbside sales or contactless payments, so many business owners incorporate these types of units into their existing setup. Most POS systems place some or all features in the cloud . This gives you access to tools using different devices in your store or from home.

What Are the Expected Costs of a POS System for a Small Business?

POS systems come with a hefty monthly cost, and if you’re starting new, you’ll also spend quite a bit on hardware. Many larger POS providers offer financing or payment plans for bundled hardware kits along with month-to-month payment options for your POS software subscriptions. Prices ranges consist of: Monthly POS software: Free to $299 per month Basic hardware bundles: $299 to $899 Payment processing: Interchange fee (small percentage of the transaction) plus $0.10 to $0.30 per transaction

Do I Need a POS System for my Business?

While a POS system isn't necessary to run a business, it can be a helpful tool. These programs offer a range of services, including payment processing and order taking. By using a POS system, your business can make the customer experience more positive because of the speed and efficiency involved. You can also automate your sales tracking, inventory management, and make your checkout experience much faster.

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Best POS Systems for Small Businesses for August 2024

By Jessica Elliott

Updated August 01, 2024

Fact checked by

Michael Rosenston

Square tops our list of point of sale (POS) systems because it offers small businesses a lot of flexibility.

POS systems improve the customer experience and make it easier for business owners to track inventory, sales, and employee performance. Moreover, your POS solution supports omnichannel experiences, which are seamless transitions between in-store, phone, and online sales.

Selecting the best POS system for your small business is challenging. We researched more than two dozen POS solutions and compared them side-by-side. We judged systems on their ease of use, hardware and software options, customer service, features, and pricing packages.

Best POS Systems for Small Businesses for August 2024

Best Overall: Square
Best Value: eHopper
Best for Restaurants: TouchBistro
Best for E-Commerce: Shopify
Best for Inventory Management: ShopKeep by Lightspeed

Best Overall : Square

Why We Chose It

Square provides flexibility for small businesses and plenty of room to grow.

Pros & Cons

Pros

Robust free option for online sales
Easily track inventory
Integrated payment system

Cons

Expensive processing fees for high-volume businesses
Free option lacks advanced features
Extra fee for a loyalty program

Overview

Founded in 2009, Square POS systems and devices are used in small businesses, from retail shops to diners. The platform’s versatility, combined with various pricing options, makes Square the best overall POS system for small businesses.

Square offers three plans, all of which provide integrated payments. You’ll pay credit card processing fees of 2.9% plus $0.30 for online transactions on the Free Plan. The Plus plan charges the same rates but costs $29 a month for extra features. The Premium plan costs $79 and offers lowering processing fees of 2.6% + $0.30.

For most small businesses, you’ll want a Square register. The device costs $39 per month for 24 months or $799 outright. But the company also offers mobile square readers and iPad stands so you can customize your setup. All three plans come with standard features like:

Barcode scanning
Invoice and electronic gift card options
Instagram selling capabilities
View low and out-of-stock inventory
Sales reports
Time tracking
Timecard reporting

Square also offers integrations with your small business software. Just head to your dashboard to connect your POS system with:

WooCommerce
QuickBooks Online
Xero
TaxJar
SumAll

Get more from your services by adding extra services like loyalty, email marketing, and payroll programs. If you need help with your Square POS system, you can contact Square support via phone or email or get answers from the seller community or support articles.

Best Value : eHopper

Why We Chose It

Inexpensive software with everything a small business owner needs to run a company.

Pros & Cons

Pros

Extremely affordable POS system
Built-in inventory management
Works with most tablets

Cons

No gift card management
Credit card processing fees charged to customers

Overview

For nearly 15 years, eHopper has provided an affordable alternative to pricey POS software. Its low-cost plans give entrepreneurs access to customer and inventory management tools, making it a clear winner in our best value category.

The eHopper POS system offers four plans, all of which include integrated credit card processing features. The merchant fees are passed to customers via a surcharge. With all versions, you’ll get features like:

Inventory management
Print or email receipts
Tip management
Reporting options
Customer management

In addition to the free basic plan, the company offers the following paid plans:

Plan	Price	Notes
Basic	$0
Essential Plus	$10/month ($120 annually)	Helps you easily adjust inventory, manage customer accounts, or create barcode labels for your products.
Freedom	$20.99/month ($251.88 annually)	You get employee time tracking options, low stock alerts, and QuickBooks integrations.
Restaurant	$24.49/month ($293.88 annually)	Menu building, table management, and floor planning tools, along with standard POS features.
OmniChannel	$35.99 ($431.88 annually)	Adds loyalty, e-commerce, and enables Meta sales.

With eHopper, you can use existing hardware or Android tablets, iPads, Windows PCs, and Poynt terminals. But, eHopper offers a variety of hardware options for sale, including:

Hardware bundles
Thermal printers
Cash drawers
Credit card terminals
Scanners
Tablets
Stands and accessories

You won’t get many integrations with eHopper, but you can add a loyalty package to your plan. You can call, initiate a support ticket, or chat with customer service for help with your POS system. The company also offers an online knowledge base.

Best for Restaurants : TouchBistro

Why We Chose It

TouchBistro supplies restaurateurs with cloud-based analytics to boost their food and beverage sales.

Pros & Cons

Pros

iPad POS system
Integrated credit card processing
Easy-to-use interface

Cons

Must use mostly Apple products
Customer support isn’t always responsive.

Overview

In business since 2010, TouchBistro offers software designed specifically for the restaurant industry. TouchBistro is our top pick for the best restaurant POS system with restaurant inventory management tools and restaurant-specific hardware.

TouchBistro POS software licenses start at $69 per month. With a TouchBistro system, you’ll get various tools and features to support your operations, such as:

Intuitive touch controls for table management
Remote menu management
Add recipes to manage inventory costs
Access data and reports via the cloud portal

You can add services to get more from your restaurant POS, which are available through TouchBistro, including:

Reservations system for $229 per month
Online ordering for $50 a month
A gift card program for $25 per month

Choose your hardware or buy from TouchBistro’s hardware partners for equipment such as:

iPad
Apple Mac Mini computer
Apple TV
AmpliFi MeshPoint HD
Kitchen and thermal printers
Cash drawers
Networking hardware
iPad stands
Payment devices

TouchBistro integrates with many popular programs, including QuickBooks, Sage, and 7Shifts.

If you run into problems, TouchBistro provides plenty of self-service options. You can also contact them via email, chat, and 24/7 phone support.

Best for E-Commerce : Shopify

Why We Chose It

Oversee in-store and online sales easily from your mobile dashboard.

Pros & Cons

Pros

No extra transaction fees above interchange rates
Abandoned cart recovery comes with every plan
Plug-and-play hardware

Cons

Only two staff members can access the POS with the Basic plan
Inventory location are limited

Overview

Since 2006, Shopify has provided e-commerce entrepreneurs with capable online shopping services that are easy for store owners to use and offer a pleasant digital customer experience. Its robust virtual features make it the best POS for e-commerce.

To use the Shopify POS system, you need to select a Shopify plan first. These programs cover your e-commerce website and blog, plus many features, ranging from $29 to $299 per month.

Your Shopify plan determines your credit card processing fees:

Plan	In-Person Rate	Online Rate
Basic	2.7%	2.9% + $0.30
Shopify	2.5%	2.7% + $0.30
Advanced	2.4%	2.5% + $0.30

All plans include the Shopify POS Lite plan with features such as:

Order and product management
Customer profiles
Integrated credit card processing
Quick response (QR) codes
Custom discounts and discount codes

If you opt for the POS Pro version for $89 per month per location, you can take advantage of added features like:

Smart inventory management
Unlimited registers
Omnichannel selling features
In-store analytics

Shopify offers tons of plug-and-play hardware, so it’s easy to customize your setup. Choose from complete retail kits, tap and chip card readers, and iPad stands. To get assistance, go through Shopify’s 24/7 support center or check out its vast knowledge base.

Best for Inventory Management : ShopKeep by Lightspeed

Why We Chose It

With advanced inventory tracking and a simple interface, ShopKeep by Lightspeed is a favorite among small business owners.

Pros & Cons

Pros

Low stock phone alerts
Unlimited inventory items
Inventory reporting features

Cons

Basic package doesn’t include online payments.
Can only accept gift cards with upper plans or by purchasing an add-on

Overview

Founded in 2008 and acquired by Lightspeed in 2021, ShopKeep by Lightspeed is a cloud-based POS system used widely by small retail stores, like specialty shops and cafes. However, its impressive inventory capabilities make ShopKeep the best POS for inventory management.

ShopKeep offers three plans, which all come with one free credit card reader for eligible merchants. Credit processing is included, and you’ll pay one flat rate of 2.6% plus $0.10 per transaction. All plans offer many great features, including:

Unlimited transactions
Customer payments via text message
Unlimited inventory items
Real-time sales data
Matrix inventory
Employee management and rewards
Inventory reports like sales trends and inventory value

E-commerce features are only offered in the Standard or Advanced plants. Each plan only covers one location. If you have multiple locations, you can contact the company for a custom plan.

To get the best prices, you’ll want to make one annual payment. You can pay monthly, but the cost is higher. Here are the plans:

Plan	Price	Notes
Basic	$109/month ($89/month paid annually)	This plan comes with all base features including integrated payments.
Core	$179/month ($149/month paid annually)	This plan adds accounting and e-commerce features.
Plus	$289/month ($239/month paid annually)	This plan adds omnichannel loyalty and advanced reporting.

ShopKeep sells equipment individually or as part of a kit. There is both hardware for desktop and iPad. For example, the retail kit comes with:

Cash drawer
Receipt printer
Bluetooth scanner
iPad stand
Receipt paper

Customers can call, email, or look through the self-support resources.

The Bottom Line

Having a point-of-sale system in place can help your business run more effectively. It can save you time and help your company become more cost-focused. But with so many choices out there, how do you choose? If you're looking for a system that offers you a lot of flexibility, consider signing up with Square while eHopper is an affordable option. TouchBistro is great for restaurants while Shopfily can help your brick-and-mortar and online store.

Compare the Best POS Systems for Small Businesses

Provider	Why We Chose It	Features	Free Plan?
Square	Best Overall	Barcode scanning, Instagram sales, time tracking	Yes
EHopper	Best Value	Inventory management, tip management, customer management	Yes (must sign up for credit card processing)
TouchBistro	Best for Restaurants	Intuitive touch controls, remote menu management	No
Shopify	Best for E-Commerce	Order/product management, customer profiles, custom discounts	No
ShopKeep by Lightspeed	Best for Inventory Management	Unlimited transactions, text message payments, matrix inventory	No

Guide to Choosing the Best POS System for Small Businesses

What Is a POS System?

A point-of-sale or POS system is a device that allows merchants to accept, process, and log payments from their customers. Business owners (known as the merchant) sign up for the service with a bank or merchant services provider, which provides the merchant with terminals and apps to do their business. The equipment acts like a cash register for payment processing and also facilitates order taking, inventory management, invoice generation, and market data collection.

What Are the Benefits of a POS System?

You don't necessarily need a POS system to run your business, but it can be a helpful tool. POS systems are designed to provide you with the following features:

Payment processing
Inventory management
Sales tracking
Running customer loyalty programs
Providing payment options to customers
Establishing customer relationships
Managing employees

POS systems operate electronically using special devices like a terminal or handheld device. This can help speed up the process and make it more efficient, which means you can help improve your customer experience by getting them through the payment process much quicker.

Why You Should Trust Us

To find the best POS systems for small businesses, we reviewed several factors, including subscription prices and fees, hardware types and costs, payment processing options, and features. After searching through more than two dozen POS providers, we narrowed it down to winners in specific categories by the best POS systems for things like e-commerce, inventory management, and retail use.

Frequently Asked Questions

What Is a Point of Sale System?

Your point of sale (POS) system puts all your transaction data in one spot. Many programs provide tools to track inventory, manage employees, and see revenue data in real-time. POS solutions go beyond traditional registers to offer you various ways to accept payments from anywhere in your store.
Small business owners use a POS system to better understand their sales trends, available inventory, and customers. Moreover, mobile solutions enhance the customer experience with quick checkout options and integrated customer programs.
What Does a POS System Include?
Today you can build a POS system that works for your store, so you’re not limited to just a cash register. Typical hardware for small businesses includes:
- A standalone POS cash register or an iPad system
- Cash drawer
- Receipt printer
- Credit card reader
However, you can add self-service kiosks, mobile units, and customer displays to enhance the shopping and buying experiences.
What Are the Types of POS Systems?

Although retailers still rely on standalone systems, many prefer iPad solutions, which allow you to place the iPad on a secure stand or carry it throughout the store. Mobile units or self-service kiosks are especially crucial for curbside sales or contactless payments, so many business owners incorporate these types of units into their existing setup.
Most POS systems place some or all features in the cloud. This gives you access to tools using different devices in your store or from home.
What Are the Expected Costs of a POS System for a Small Business?
POS systems come with a hefty monthly cost, and if you’re starting new, you’ll also spend quite a bit on hardware. Many larger POS providers offer financing or payment plans for bundled hardware kits along with month-to-month payment options for your POS software subscriptions. Prices ranges consist of:
- Monthly POS software: Free to $299 per month
- Basic hardware bundles: $299 to $899
- Payment processing: Interchange fee (small percentage of the transaction) plus $0.10 to $0.30 per transaction
Do I Need a POS System for my Business?

While a POS system isn't necessary to run a business, it can be a helpful tool. These programs offer a range of services, including payment processing and order taking. By using a POS system, your business can make the customer experience more positive because of the speed and efficiency involved. You can also automate your sales tracking, inventory management, and make your checkout experience much faster.

Guide to POS Systems

Best POS Systems for Small Businesses — MoMo Productions / Getty Images

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