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A POS system, or point-of-sale system, facilitates transactions in retail sales. An example of a well-known POS system would be a cash register. Modern POS systems are a combination of hardware and software that often includes a barcode scanner, card reader, cash drawer, and receipt printer. The customer interface is often a touchscreen. The simplest modern POS systems are a credit card scanner connected to a tablet.

It used to be that a cash register was all a business needed to ring up customers and accept payments. But today, businesses also need a way to take payments, track sales, manage inventory and generate reports. The right POS system can handle all of that for you. 

Whether you're on the hunt for your first POS system or looking to upgrade, it's hard to know which one will be the best fit for your business. We did the work to evaluate POS systems for you. During our review, we considered factors like affordability, ease of use and overall functionality. We also looked for cloud-based solutions that are easy to set up. Keep reading to learn more about our top picks for small business POS systems. 

Clover is a good option for many different kinds of business, but especially ones that want a wide selection of POS hardware. If your hardware needs are minimal, you can start with the Clover Go card reader and then upgrade to the full POS station as your needs expand.

One of the advantages of Clover hardware is how easy it is to set up and begin using. The hardware is ready to use as soon as you take it out of the box, and everything syncs seamlessly with the Clover dashboard.

Clover is an all-in-one POS solution that allows you to manage your business from anywhere. You can use the Clover Go app to create orders, accept payments and text receipts to your customers. At the end of the business day, you can see a complete history of your transactions.

When you pair Clover with the dozens of apps available on the Clover App Market, it becomes an even more powerful solution for your business. You can use Clover to manage your employees and customers, track inventory, and create reports.

One downside is that the pricing on Clover's website can be confusing. It states that your first 30 days are free, but if you want more information than that, you'll have to speak with a sales rep.

Toast is an all-in-one POS system that helps busy restaurant owners accept and track their sales. The software has everything you need to manage your restaurant's sales, including front-of-house, back-of-house, and guest-facing technology. Toast serves restaurants of all sizes, including upscale restaurants, casual dining, bars, nightclubs, cafes, bakeries and chains.

You can use Toast to process credit and debit card transactions and take contactless payments. The system includes features for marketing, employee scheduling and online ordering. Toast's extensive partner network also allows you to access numerous third-party apps.

One of Toast's standout aspects is the wide variety of online ordering plans available. As a Toast customer, you can choose from multiple online ordering and delivery options based on the features you need.

Lightspeed is a leading POS provider for businesses in the retail and restaurant industries. We chose it as the best POS for retail because it has an impressive set of features geared toward retailers, including advanced loyalty and inventory management tools.

In 2020, Lightspeed acquired the e-commerce platform ShopKeep, which allows retailers to sell their goods online – and it continues to expand its presence in the e-commerce space. It now offers Lightspeed eCom, a platform that helps business owners set up an online shop, sell their products on social media, and run multiple stores under one dashboard.

Retail customers can choose from four tiered POS plans, ranging from $69 to $199 per month. All Lightspeed plans include one free terminal, which other POS companies do not provide.

TouchBistro is another POS provider that caters to restaurants, and it's our pick for providing the best guest experience. The company offers a wide variety of tools, including tableside and self-service ordering for your customers and inventory management features.

Pricing for TouchBistro starts at $69 per month, and you can add on more features to suit your needs – such as an online reservation system, online ordering capabilities, gift card functions, and loyalty programs.

You can run the mobile-friendly POS solution on an iPad, iPad Mini or iPad Pro. It also supports third-party POS hardware like barcode scanners, cash drawers and receipt printers. This helps you keep your add-on costs down, but you'll have to contact the company to see if TouchBistro is compatible with your current hardware or the hardware you want.

The system makes it easy to track your inventory levels and table turnover and to create customer accounts. If you run out of a certain food item, you can use the software to communicate recipe changes to cooks and servers.

You can also use TouchBistro to manage your staff by assigning roles, tracking attendance and performance, and maintaining employee profiles. You can run more than 50 different reports in the software, and customer support is available 24/7.

Square offers POS software and hardware solutions for businesses to accept customer payments. Its POS plans are geared toward restaurants and retail, though it's a good option for service-based businesses as well.

Square is the only one of our best picks that offers a free POS plan. To take advantage of this option, you just have to process payments through its in-house platform. Instead of charging a flat fee, Square bases its prices on the client business's sales, making it a good option for newer businesses with low sales volume. You'll pay transaction fees of 2.6% plus 10 cents for in-person transactions. Online payments come with transaction fees of 2.9% plus 30 cents. 

Square also offers two paid plans – Plus and Premium. The Plus plan is $60 per month per location and $40 per month per added POS device. The Premium plan offers custom pricing. 

Square also offers various add-ons, including features for team management, customer loyalty, and marketing. If you run a service-based business, your customers can even use Square to book appointments with you. Square's mobile app works on iOS and Android devices, so you can access your data from anywhere. 

GoDaddy is our best pick for tracking online and in-person sales. It's a great option for retail businesses that want to set up a website and accept customer payments.

GoDaddy is known for offering custom domains and websites, and it integrates these features with its POS plans. Every plan includes a website builder, custom domain, and detailed website and marketing analytics. 

If you purchase one of the advanced plans, you can also access gift cards, discounted shipping, and promotional features. However, the system doesn't integrate with third-party payment processors, so you'll have to use GoDaddy Payments as your processor if you choose it as your POS system. 

Upserve is a POS system that caters to small restaurants like coffee shops, cafes, delis and bakeries. The software has inventory management features like vendor management, one-click purchasing and low-inventory alerts. You can also use tools like menu optimization and recipe costing to improve your sales and profits. 

The company offers three subscription plans: Core for $59, Pro for $199 and Pro Plus for $359 per month. You're required to purchase at least one Upserve POS terminal with your plan, which can range from $40 to $60 per terminal. You also have to use Upserve's payment processing solution, which charges a flat rate. 

You can use the Upserve mobile app to manage your restaurant on the go. Upserve also offers customization options like commission-free online ordering, gift card features and customer reporting. 

CardConnect isn't your standard POS system. Instead, it offers a collection of merchant services for businesses, including CardPointe (for businesses), Clover (for small shops), Gateway and Plugins (for e-commerce), Bolt (for software), CoPilot (for partners), and Contactless Payments (for software). 

One of the aspects that stands out about CardConnect is its security. It offers secure and straightforward solutions and PCI-compliant features.

Small businesses looking for POS software through CardConnect can consider two primary options – CardPointe and Clover. The two platforms are similar, but one may be a better fit for your business's needs.

CardPointe is a web-based POS system with features like transaction management. You can access countertop and virtual terminals, which give you the flexibility to process payments the way you want. CardPointe has free mobile apps, hosted payment pages, and integrations such as Bolt. You can also add on functions like shopping carts.

Clover is best for businesses that want inventory management, employee and customer management, and reporting features. It also offers proprietary hardware options that easily integrate with the software.

Epos Now is a POS provider headquartered in the U.K., but it serves customers across the globe. Its current customers include Walt Disney Pictures, Universal Studios and Yankee Candle. We chose Epos Now as the easiest POS system to use because it offers a wide variety of convenience features and one-on-one onboarding.

Epos Now offers excellent options for retail and hospitality businesses, as well as multiple hardware options – such as a touchscreen POS system, a handheld POS option, receipt printers and cash drawers. You can add on the hardware you need to create a custom solution for your business. Epos Now also integrates with various third-party products, giving you a lot of options for the system's functionality.

Epos Now is so easy to use that it says you can train your employees to use it within 15 minutes. This is especially convenient if you have high employee turnover, as restaurants and other sales-based businesses often do. If you do run into problems with the system, though, you can contact customer support by phone or email.

Lavu is an iPad-based, highly customizable POS system for restaurants of all sizes. It's a particularly good option for coffee shops, pizza stores, food trucks and wineries. When you sign up for Lavu, you can pick from various POS hardware and accessories, including terminals, kitchen display systems, cash drawers, and networking devices. 

One of the best things about Lavu is its integration capabilities. It supports third-party payment processors like BridgePay, Heartland, PayPal and Square. If you prefer, you can accept customer payments through Lavu Pay, its in-house payment solution. This wide selection, along with the many features, gives you the flexibility to assemble the POS system that works for your restaurant.

The POS terminal plans start at $69 per month, but you'll need to contact the company for a custom price quote if your restaurant has multiple locations. 

Revel is a cloud-based POS system for restaurants and retailers. It has many useful POS functions, but its customer loyalty programs are what really stand out. Revel lets you set up a custom program for how your customers earn loyalty points and rewards. This in-house loyalty rewards program can easily integrate with your POS system – and it's just as easy to incorporate if you use a third-party loyalty program. You can also use the software to track customer data and gain valuable insights on your customers' purchasing habits. 

Revel offers a variety of hardware, and the hardware packages are preconfigured and ready to use. It requires you to purchase at least two terminals when you sign up, though you can also integrate Revel with third-party hardware. 

The software plans start at $99 per month, with flat-rate credit card processing fees. Revel also integrates with third-party payment processors like First Data, Heartland and Worldpay.

Helcim offers competitive pricing on its all-in-one POS platform for small businesses. We especially like its transparent, simple pricing structure. There are no contracts or monthly fees, and you'll receive competitive interchange pricing for all your credit card transactions. The interchange rate varies by credit card issuer and the number of card transactions your business processes, but Helcim charges average processing rates of 1.92% plus 8 cents for in-person sales and 2.38% plus 25 cents for keyed-in and online transactions. 

Thanks to Helcim's virtual terminals, you can accept credit and debit card payments from any device. The reader costs $109 and comes in three colors (pink, yellow, and purple). This option is unique to Helcim, as no other payment processor in North America offers color choice. For businesses that want visually-memorable hardware that customers see during every transaction, Helcim’s readers certainly stand out.

Some of its other useful features are merchant accounts, multiple hardware options, a mobile app and POS software. You can also set up hosted payment pages that allow your customers to create accounts, save their payment information, and set up recurring billing. 

When you invest in a POS system, three main costs typically come with it – a one-time hardware fee, a monthly or annual software fee, and a payment processing fee. Depending on the vendor you choose, there may be additional costs for features like marketing, online ordering, or gift cards for your customers.

Before choosing a POS system, you need to determine what type of system you need, what features you require, and how much you can afford. Ask yourself the following questions to narrow down your options. 

Cloud-based POS systems are mobile, easy to use, and generally less expensive than server-based systems. With cloud-hosted systems, you can access your reports and other back-office features from anywhere. Because your data is in the cloud, you don't need to set up, maintain, and secure a local server. You may want a server-based system if you don't have reliable internet access, though. These POS systems are installed on a server and host your data locally instead of in the cloud. The advantage is that you don't need the internet to run your POS system. However, the security and backups are your responsibility, so you may have additional IT and maintenance costs. 

Did you know?: Because of their mobility, affordability, and usability, cloud-based POS systems are becoming the norm for small businesses. In particular, restaurants benefit greatly from mobile POS systems.

Most POS providers offer one version of their software for retailers and another for restaurants. Some retail versions also offer integrations or add-ons that make the POS suitable for service-based companies. Other providers specialize in one vertical, offering only retail or restaurant POS software. 

Be sure to choose the right type of POS software for you. Restaurant POS systems, for example, are very different from retail POS systems and not typically compatible with the needs of a retail environment. The wrong POS system could waste significant time and money for your business – and require your staff to figure out workarounds that make the whole process confusing and inefficient.

Some mobile POS systems work on both iOS and Android tablets and PCs, while others only work with one operating system. The main advantage of using iPad-based systems is that they are known for being user-friendly, stable and secure. The main drawback is that they tend to be more expensive. [Already using Apple? Learn how to turn your iPad into a POS system.]

If you go with Android devices, you'll likely end up paying less, and these platforms allow for greater customization. But there are only a few Android POS systems, so your options will be limited. 

The right POS features will make it easier to run your business and streamline your processes. Here are some features you should look for in a POS system. 

Most businesses begin looking for a POS system because they need a way to complete customer transactions. Many POS providers go beyond accepting credit and debit card payments, also allowing you to take online and contactless payments. You'll receive detailed insights about your daily sales in the process, so you'll always know how your business is performing.  

Basic POS systems may only support a product catalog, while others can track inventory at the component or ingredient level. Some plans include purchase ordering and vendor management features to simplify your reordering process. Consider whether standard inventory tools will be sufficient or if you need advanced features to keep your business well stocked. [Learn more about how POS systems help with inventory management.]

POS systems have varying customer management features. Some allow you to capture basic information, such as your customers' email addresses so you can build an email marketing contact list. Others have CRM features that let you create customer profiles, including contact information, purchase histories, preferences, birthdays, and notes.

Tip: If you prefer more extensive customer relationship management than you can find in a POS system, consider one of our picks for the best CRM software.

To ensure a loyal customer base, you need to reward your best customers. A POS system enables that with built-in loyalty software. The top POS systems can track information on your customers' shopping and dining preferences, then help you create loyalty and rewards programs around that data. You can customize rewards based on how frequently the customer shops at your store and the products or services they purchase.

You can usually add your employees to the POS system and manage their access to various features and information. Some systems have role-based access controls, while others let you customize the controls for each employee. Some have built-in timeclocks, which let your employees use the POS system to clock in and out. Others can track individual employees' sales or manage tips. [If tracking your employees' time is one of your main needs, consider the best time and attendance software.]

All POS systems have reporting capabilities, but some are basic, with just a handful of preconfigured reports and limited customization. Others are advanced, with dozens of reporting options and filters to help you analyze data for your sales, inventory, customers, and staff. 

The best systems have real-time reports that you can access from any device with a browser or mobile app. Before purchasing a POS system, make sure it offers the specific reports you need to run your business efficiently. [Related article: 5 POS Reports Every Business Owner Should Run]

POS systems often have a lot of features, but they may not be enough for your small business. That's where add-ons and third-party integrations can be helpful. You may, for example, want to use a specific email marketing platform, sync the sales data with your accounting software, or offer a customer loyalty program from a certain provider. The best POS systems give you a ton of integration and add-on choices so you won't be limited as your business grows.

You should be able to contact your POS provider around the clock to receive help with the system when you need it, even if your business keeps irregular hours or you're working on the weekend. Look for a POS provider that you can easily reach via your preferred mode of communication, whether that's phone, email, live chat, or social media. The best companies even offer 24/7 support.

FYI: Three POS reports you should run regularly are sales summaries, sales per product, and sales per customer. Learn how to interpret your POS sales reports and use that info to boost your business.

A point-of-sale (POS) system records the products or services a customer intends to purchase, adds up the items' cost, calculates tax, accepts various forms of payment, and generates a receipt. 

A POS system differs from a cash register in that it has advanced features that make it easier for merchants to manage sales data, inventory, customers and employees. It has three components: software, hardware and a credit card processor. 

Virtually every business needs some way to accept and process customer payments, and POS systems help them do that. However, customer-facing businesses like retailers and restaurants most commonly use these systems.

As soon as you begin selling goods or services in person, your business needs a POS system, no matter how small your operation is. A POS system makes the checkout experience easier for you and your customers, reducing the time it takes to ring up a sale and the risk of human error, such as miscalculations.

A POS system also helps with inventory management by tracking the items you have in stock, and some can even generate purchase orders. POS systems with advanced inventory management tools can track sales from your e-commerce platform or physical retail store in real time or across multiple locations.

Real-time reporting shows which items are your bestsellers, so you can reorder popular items and offer promotions on underperforming items. It can also help you identify your busy and slow hours, days, and seasons so you can optimize your staffing.