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POS Systems for Small Business

Best POS Systems for Small Businesses

We tested the top POS Systems in 2024 to help you find the one perfectly suited for your small business.

Raechel Conover

Jamie Ostroe

March 22, 2024

Fact Checked

In an era where customer satisfaction and streamlined transactions are paramount to business success, choosing the right point-of-sale (POS) system for your small business is a major decision that can be difficult. Whether looking for POS software for a small retail business, restaurant, or something else, we want to help make that process easier. Our comprehensive guide offers insights and considerations on features, pricing, and expert and user reviews to help you find a trustworthy vendor that will meet the needs of your customers and staff.

Our Top Picks

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POS Systems for Small Business Reviews

To find the best POS software vendors for you, we started with a list of over 100 well-known POS systems. Then, using meticulous, in-depth research, we narrowed our list down to seven providers.

As explained in our methodology, we chose our final vendors based on POS features like management and accepted payment, customer support, ease of use, pricing, and brand reputation. Below, we discuss our findings for each POS provider we recommend.

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Square

Best Small Business POS System

Square POS offers the whole package. It works for all types of small businesses, including restaurants, online retail stores, and businesses that need appointment scheduling. It’s a comprehensive point-of-sale solution that provides a user-friendly interface facilitating seamless transactions, inventory management, and analytics.

It has a robust free program and transparent pricing and accepts many out-of-the-box payment options like contactless payments, mobile pay, and Afterpay. It’s available to use offline, and there are many tools you can mix and match, making scalability easy.

Why We Picked It

Square Pricing and Plans

Starting Price	Number of plans	Free plan	Free trial
$89 / month	3	Free	30 days

Square POS combines affordability, mobility, security, and a full set of features. Its commitment to transparency and extensive range of features and integrations make Square a versatile and practical choice for those seeking a comprehensive POS solution.

Square POS offers many features, including customer management, loyalty program management, gift card options, inventory management, a mobile app, many integrations, and loss prevention.

This suite of tools streamlines many aspects of business operations.

It offers three plans, starting with a free version that does not come with hardware but still covers all your POS needs.

Pricing is transparent on every level, down to the payment processing fees, and there are many optional add-ons that make scaling up or down very easy.

Square POS is a powerful program that helps you build customer loyalty and repeat business while staying agile and affordable—even at the free level.

Who Should Use It

Square is a great POS solution for any small business. With features designed to benefit restaurants, salons, those with appointment-setting requirements, retail establishments, and online outlets, Square stands out as a versatile option.

The robust free version is particularly beneficial for budget-conscious businesses and companies with lower transaction volumes. The only associated fee is a transaction fee, which offers substantial cost savings when you don’t have excess transaction requirements.

Square Features

Inventory management	✅
Customer management	✅
Loyalty program management	✅
Gift card management	✅
Variety of payments accepted	✅

Inventory management is one of the many features available with Square POS.

Pros and Cons

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Toast

Best Restaurant POS System

Are you operating in a fast-paced and competitive market? If so, Toast is the POS solution for you. Toast POS is a comprehensive point-of-sale system designed specifically for small businesses and restaurants, offering out-of-the-box usability.

As a small handheld device, it streamlines order processing, inventory management, and payment transactions, providing a seamless experience for both staff and customers alike. Plus, once it’s set up, you can begin using it immediately.

Why We Picked It

Toast Pricing and Plans

Starting Price	Number of plans	Free plan	Free trial
$69 / month	4	Quick Start Bundle	No

Toast stands out as an accessible POS solution for small businesses in the restaurant industry.

Its comprehensive feature set includes mobile accessibility, loss prevention, inventory tracking, customer management, loyalty program management, and a user-friendly interface that streamlines operations from order processing to financial management.

Toast’s restaurant POS systems come in what they call kits. These kits include payment devices, data security hardware, a point-of-sale terminal, and a software subscription.

They are easy to set up, and you can start using them immediately. They allow you to support a variety of payment methods, accommodating diverse customer preferences and fostering a seamless transaction experience.

In addition to the starter kit, you can add several tools, such as self-service kits for online ordering and contactless service.

A kitchen display system is also available and allows your kitchen staff to see orders in real time as they come in. You can also add a kiosk that defines your offerings to your customers.

Toast offers four subscription options. The first option is free. Most of their plans come with a mobile app and integrations as well, allowing you to enhance your overall business operations.

Who Should Use It

Toast is an ideal solution for small to medium-sized businesses and fast-food enterprises, food trucks, and restaurants. Those who seek a comprehensive and user-friendly point-of-sale system and prioritize features such as efficient order processing, inventory management, and customer engagement through loyalty programs will find Toast a valuable asset.

Toast Features

Inventory management	✅
Customer management	✅
Loyalty program management	✅
Gift card management	✅
Variety of payments accepted	✅

Pros and Cons

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Lightspeed Retail POS

Best Retail POS System for Small Business

Lightspeed Retail POS is a point-of-sale solution focusing on inventory management, sales analytics, and employee management. Its user-friendly interface and cloud-based system provide flexibility for on-the-go access and efficient business operations.

Lightspeed also integrates with e-commerce platforms, ensuring a unified and streamlined approach if you want to expand your online presence.

Why We Picked It

Lightspeed Retail POS Pricing and Plans

Starting Price	Number of plans	Free plan	Free trial
$69 / month	4	No	14 days

Lightspeed Retail POS is a versatile and scalable solution with a wide range of features. From customer management and loyalty programs to advanced security measures, Lightspeed Retail POS covers the entire spectrum of retail operations.

One standout feature is its intuitive inventory management system. You can easily track stock levels, manage suppliers, and automate reorder processes, preventing stockouts and ensuring accurate insights into product performance.

You can also take advantage of the mobile app, which offers real-time sales, inventory, and customer data.

The platform integrates with various third-party applications, like accounting software and e-commerce platforms, as well.

This capability streamlines operations and helps future-proof your business by adopting new technologies.

Lightspeed Retail POS provides four transparent and scalable subscription plans, allowing you to choose one that aligns with your budget and requirements.

Who Should Use It

Lightspeed Retail POS provides inventory management tools that allow you to streamline processes across multiple locations, forecast inventory needs, and manage custom orders, gifts, bundles, and online orders. It also integrates with e-commerce platforms, making it an ideal choice for a versatile and scalable retail POS solution.

Lightspeed Retail POS Features

Inventory management	✅
Customer management	✅
Loyalty program management	✅
Gift card management	✅
Variety of payments accepted	✅

Retail dashboard in Lightspeed Retail POS.

Pros and Cons

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Shopify

Best Cloud-Based POS System

Shopify offers a point-of-sale system that integrates seamlessly with their popular online store. Their POS system comes with many key features like inventory management, order tracking, and secure payment processing. Shopify POS is a user-friendly system that can manage both online and in-store mobile sales on a single platform.

Shopify POS helps businesses streamline operations, enhance customer experience, increase efficiency, and grow in competitive markets.

Why We Picked It

Shopify Pricing and Plans

Starting Price	Number of plans	Free plan	Free trial
$5 / month	5	No	3 days

Shopify POS is a cloud-based point-of-sale system tailored to meet the needs of small business owners.

Additionally, both in-person and online retailers can use the same mobile app to process sales and transactions, offering a unique omnichannel approach to business operations.

You can arrange delivery and curbside pickup through the app as well, ensuring that you can easily keep up with current retail trends.

The mobile app is a major strength of Shopify POS as it allows you to manage your store remotely. The feature gives real-time insights into sales, inventory, and customer data, empowering you to make informed decisions and foster responsiveness in a dynamic business landscape.

Additionally, if you need hardware in addition to the mobile app, it is available at an extra cost.

Other core features it offers include inventory management, employee management, customer management, security, loss prevention, integrations, loyalty programs, custom gift card options, and various payment methods, including digital wallets.

Shopify adopts a tiered structure starting at $5 per month, ensuring scalability and flexibility for businesses of varying sizes.

Pricing plans differ based on your chosen tier, allowing you to find a plan that works best for your business needs.

Who Should Use It

While Shopify works for small businesses across many industries, it’s best suited for online retailers or those with an online storefront. If you prioritize user-friendly interfaces, seamless online and in-store integration, and advanced features like inventory management, Shopify’s cloud-based POS is particularly well-suited for you.

It can help enhance operational efficiency and customer engagement in a unified e-commerce environment.

Shopify Features

Inventory management	✅
Customer management	✅
Loyalty program management	✅
Gift card management	✅
Variety of payments accepted	✅

Shopify accepts a wide variety of payment options.

Pros and Cons

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Cake POS

Best Mobile POS System for Small Business

Using Cake POS is, as the saying goes, a piece of cake to use and is designed specifically for restaurants. It’s a highly mobile POS system that connects all aspects of your restaurant under one seamless, user-friendly system.

Notable features include order management, inventory tracking, and customer engagement. If you want to enhance your operations and your customer’s dining experience, Cake POS is an affordable and effective solution.

Why We Picked It

Cake POS Pricing and Plans

Starting Price	Number of plans	Free plan	Free trial
$69 / month	3	No	None

Cake POS is an all-in-one solution created by the parent company Mad Mobile. While it can work for retail establishments, it is better suited for restaurants.

Cake POS helps restaurants, food trucks, breweries, small eateries, and the like manage all their needs.

In addition, the system is more than just a POS. It is an all-in-one solution that streamlines ordering, front-of-house operations, back-of-house operations, and everything in between.

With Cake POS, you can take orders tableside, online, or via a mobile kiosk, letting servers enter orders manually.

It also offers inventory management, supplier relationship management, auto reordering, customer management tools, loyalty programs, marketing, gift card options, and integrations.

In terms of payment acceptance, Cake POS supports various payment methods.

From traditional credit and debit cards to modern contactless and mobile wallet payments, the system ensures you can cater to your broad customer base.

The price for Cake POS is designed to be accessible for small businesses, with transparent subscription models that cater to your business size and needs.

The combination of its many features, user-friendly interface, and affordability makes Cake POS a compelling choice for small restaurants that need a mobile POS system.

Who Should Use It

Cake POS is an affordable and comprehensive POS solution that works best as a mobile application for small businesses in the food and beverage industry. It’s designed specifically to sync the front of the house with the back of the house and everything in between.

It can also help you take orders right at the table, from a mobile kiosk, or online. Cake POS is a user-friendly and intuitive system that connects business operations, streamlining the whole process.

Cake POS Features

Inventory management	✅
Customer management	✅
Loyalty program management	✅
Gift card management	✅
Variety of payments accepted	✅

Pros and Cons

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Korona POS

Best Retail POS System for Liquor Stores

Korona POS is a comprehensive point-of-sale solution tailored for small retailers. It offers a user-friendly interface with a range of inventory and payment features crucial for efficient operations.

Backed by 24/7 customer support, Korona POS provides customizable solutions that cater to the unique needs of your business, ensuring adaptability and scalability as you grow.

Why We Picked It

Korona POS Pricing and Plans

Starting Price	Number of plans	Free plan	Free trial
$59 / month	2	No	Unlimited free trial

Korona POS is a well-rounded solution for small businesses. It offers plenty of features on a flexible platform, addressing essential aspects of retail processes.

These features include customer management, loyalty program management, gift card management, and inventory management to monitor perishable goods, automate reordering, and prevent loss.

You can use these features to enhance your customer experience and implement effective marketing strategies to cultivate customer loyalty. Korona POS also has advanced features you can take advantage of to streamline operations.

Some advanced features include the ability to flag and scan age-restricted items and identifications, keeping you compliant with laws on selling alcohol, tobacco, and similar items.

Korona POS also offers a mobile app that provides real-time access to sales data, inventory updates, and customer information, empowering you to make informed decisions timely and remotely.

Additionally, it provides a comprehensive suite of integrations, allowing you to use existing tools and platforms and enhancing overall operational efficiency.

Finally, Korona POS offers transparent pricing and a scalable model suitable for small businesses. It has two flexible pricing plans, so you can choose the option that aligns best with your specific operational requirements and budget constraints.

Who Should Use It

Korona POS can flag and monitor the sale and purchase of age-restricted items and scan customer IDs at the point of sale. This makes it a valuable POS system for liquor and convenience stores selling high volumes of age-restricted items.

Korona POS Features

Inventory management	✅
Customer management	✅
Loyalty program management	✅
Gift card management	✅
Variety of payments accepted	✅

Korona POS dashboard gives information on inventory, sales, customers, and employees.

Pros and Cons

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Clover

Best POS System for Convenience Stores

Clover POS is a highly customizable point-of-sale solution. You can customize each plan with what hardware and software options you need, tailoring it to the needs of your business. Its user-friendly interface, versatile payment processing capabilities, and robust app marketplace further set Clover apart and allow you to simplify business operations and enhance the overall customer experience.

Why We Picked It

Clover Pricing and Plans

Starting Price	Number of plans	Free plan	Free trial
$74.95 / month	Varies	No	None

Clover POS is designed to meet the diverse needs of small businesses. The biggest perk Clover offers is that you can “build your own” solution through its customizable hardware and software options.

This way, you can ensure that your POS system perfectly fits your unique requirements. However, this approach does make pricing a bit ambiguous.

Clover’s key features include typical inventory management, customer management, loyalty program features, a mobile app, a wide range of accepted payments, and loss prevention.

Additional features include real-time sales tracking and reporting, cost tracking per item, tax reporting, and rapid deposit.

Clover also offers a mini POS that’s great for businesses like quick-service restaurants and convenience stores.

The system’s intuitive interface makes navigating and managing transactions easy. Plus, Clover’s app marketplace provides a wealth of additional functions, including robust integrations with various third-party applications.

Who Should Use It

Clover is a flexible and reliable solution for most small businesses. Their customization ensures that you receive tailored plans that have the hardware and software you need to fulfill your small business needs. Clover also includes a mini POS option, making it a good fit for convenience stores and quick-service restaurants.

Clover Features

Inventory management	✅
Customer management	✅
Loyalty program management	✅
Gift card management	✅
Variety of payments accepted	✅

Mini POS solutions are available for convenience stores, small retail outlets, and quick-service restaurants.

Pros and Cons

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TouchBistro

Best for Customizations

TouchBistro helps boost revenue, streamline operations, and enhance the dining experience for your guests. It’s a robust restaurant POS solution with customizable pricing, letting you pick software tools tailored to your needs. Features are plentiful and range from tableside ordering to menu and staff management.

Why We Picked It

TouchBistro Pricing and Plans

Starting Price	Number of plans	Free plan	Free trial
$69 / month	8	No	None

TouchBistro offers many features to choose from, which are divided into sections. The POS features include staff, menu, and table management, tableside ordering, payment processing, and reporting. You can also choose features for the front of house, such as payments and a customer-facing display. Back-of-house features include a kitchen display system and profit management. Features for guest engagement include gift cards, reservations, online ordering, loyalty programs, and marketing tools.

TouchBistro offers integrations with many best-in-class payment and software partners, including payment processing, inventory management, staff scheduling, payroll, accounting, and more. You can use your own hardware (Apple devices only) or purchase TouchBistro hardware.

Setting up and using TouchBistro is easy, with an onboarding specialist to guide you and numerous tutorials available online. Taking care of your guests and growing your revenue is easy with TouchBistro.

Who Should Use It

TouchBistro takes a unique approach to restaurant POS. Instead of offering you a one-size-fits-all setup, you can choose the features you need from their a-la-carte offerings. Choose from POS, front-of-house, back-of-house, and guest engagement features to create an all-in-one plan unique to your needs.

TouchBistro Features

Inventory management	✅
Customer management	✅
Loyalty program management	✅
Gift card management	✅
Variety of payments accepted	✅

TouchBistro POS offerings.

Pros and Cons

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Compare the best POS systems for small business side-by-side

Brand	Best for	Starting Price	Free Option
Square	Best Small Business POS System	$89 / month	Free plan and 30-day free trial
Toast	Best Restaurant POS System	$69 / month	Free plan
Lightspeed	Best Retail POS System for Small Business	$69 / month	14-day free trial
Shopify	Best Cloud-Based POS System	$5 / month	3-day free trial
Cake POS	Best Mobile POS System for Small Business	$69 / month	None
Korona POS	Best Retail POS System for Liquor Stores	$59 / month	Unlimited free trial
Clover	Best POS System for Convenience Stores	$74.95 / month	None
TouchBistro	Best for Customizations	$69 / month	None

What is a POS System?

A point-of-sale system (POS) is a combination of hardware and software that allows your small business to process transactions and manage various aspects of your sales and inventory operations. It is the central hub where you complete sales transactions, track inventory, track sales, manage customer information, and generate sales reports.

POS systems are used in various industries, including retail, e-commerce, restaurants, hospitality, and more. They help you streamline operations, improve accuracy, and enhance the overall customer experience.

What are the different types of POS systems?

POS systems come in various types, each designed to meet the functionality of different businesses and industries. Here are some common types of POS systems:

Mobile POS systems: This includes tablet POS systems and usually comes with a free mobile app in exchange for processing fees. You can check customers out on your phone or tablet and email them receipts. Square and Shopify are both examples of a mobile POS solution.

Multichannel POS systems: As it sounds, this type of POS integrates your transactions and processes over all your locations, online, on social media, and more. Shopify is a good example of this type of system.

Online POS systems: These allow you to use your own hardware. For instance, you can log in online and run POS on your desktop, laptop, or tablet.

Self-service kiosk: This system is when you use a tablet or hardware from your POS provider. The provided hardware lets customers sign in for appointments, review and order from your menu, and manage and pay for parking spots. Toast POS offers a self-serve kiosk option.

Terminal POS systems: This form of POS system includes hardware and software features like a barcode scanner, cash drawer, and terminal for checkout. They connect online and are often cloud-based POS systems. Most of the vendors on our list either come with hardware or offer the option to get a terminal system.

Which POS system features are most important for a small business?

POS systems offer businesses of all sizes many features. In our research, we found the following features to be the most important to small businesses:

Customer management: Small businesses often need software that “does it all” and a POS solution that acts as a CRM (customer relationship management) tool by tracking important customer information that fits the bill.
Gift card management: This is a feature that allows your business to create, sell, redeem, and track gift cards for increased revenue and customer loyalty.
Inventory management: This is when a POS system can track your catalog or menu items as they sell. Some POS solutions can track inventory across multiple locations, auto-reorder, manage vendors, and predict inventory needs.
Loyalty program: Like a CRM tool, a loyalty program tracks customer information, including purchases, and allows you to set up rewards for those purchases.
Variety of accepted payments: Being able to accept different types of payments is vital. We made sure the POS systems we chose could accept all types of debit cards, credit cards, and other forms of payment. Some POS systems even allow you to collect contactless payments and Afterpay.

How much does a POS system cost?

Finding the average pricing can be complicated for POS systems. Most charge a flat monthly rate, but each card run also incurs a processing fee.

The processing fee is a combination of the percentage of the sales transaction plus a fixed rate per transaction—most larger-size companies using a POS cover this fee.

However, small businesses can try to reduce the impact of credit fees through a surcharge. Basically, you can charge customers a part of the fee when they use credit cards.

Processing fees usually vary depending on your plan. Generally, the more expensive your plan, the less you pay in processing fees.

To help you better understand pricing and processing fees, check out the following chart featuring several of our recommended vendors.

POS System Prices & Processing Fees

	Korona POS	Lightspeed Retail	Square POS	Shopify POS	Clover
Base price	$59 per month	$69 per month	$89 / month	$5 per month	$74.95 per month
In-store processing fee	Varies	Varies	Starting at 2.5% + $0.10	Starting at 2.7% + $0	Starting at 2.3% + $0.10
Online (contactless payments) processing fee	Varies	Varies	Starting at 2.9% + $0.30	Starting at 2.9% + $0.30	Starting at 3.5% + $0.10
AfterPay	N/A	N/A	N/A	Starting at 3.5% + $0.15	N/A

How to choose a POS system

Choosing a POS system is a critical decision for your business. Here are several factors to consider when selecting a POS system for your small retail business:

Ease of Use
Features and Functionality
Integration with Other Systems
Scalability
Hardware Compatibility
Customer Support and Training
Cost
User Reviews and Recommendations

Research and careful evaluation (including through guides like this) will help you choose a POS system that aligns with your business needs.

Priyanka Swamy, CEO of Perfect Locks, says, “I researched extensively, asked for recommendations, and tested different systems to find a POS for Perfect Locks.”

Point-of-Sale (POS) Systems Frequently Asked Questions (FAQ)

What are the benefits of using a POS system?

Using a POS system has many benefits for your small business. It streamlines transactions, manages inventory, improves accuracy, and integrates with other software. Additionally, POS systems enhance security, support remote access, and scale with business growth.

Most of all, a good POS solution contributes to a positive customer experience by creating an easy and smooth checkout experience. It can also handle promotion and discount management. Overall, a well-chosen POS system can significantly enhance the efficiency, accuracy, and profitability of your business.

Is there a POS system for small businesses without monthly fees?

A few POS solutions on our list do not charge a monthly fee and instead only charge a processing fee per transaction. These vendors include Square and Toast.

What is the best software for a small retail business?

The best software for a small retail business depends on the specific needs and requirements of the business. Of our top POS picks, we feel Lightspeed Retail, Square, and Shopify POS are best suited for small retail businesses.

What is the cheapest POS system for small businesses?

Our research found that the cheapest POS system for small businesses is Shopify POS, with a base pay of just $5 per month. That said, the processing fees are slightly higher than other providers. Korona POS is the second cheapest on our list, starting at $59 monthly.

What hardware do I need for a POS system?

The hardware needed for a POS solution can vary depending on the business type, size, and requirements. Some POS systems may use mobile devices like tablets and smartphone kiosks as part of their hardware options. The specific hardware requirements will depend on the POS software being used and the unique needs of your business. You can either receive POS hardware from your vendor or provide it for yourself. The primary hardware includes:

Point of Sale Terminal: This is the physical device where the sales transaction occurs. It typically includes a computer or tablet.
Barcode Scanner: This is used to quickly and accurately scan product barcodes.
Credit Card Readers: These allow customers to make electronic payments using credit or debit cards.
Cash Register/Cash Drawer: You need these to accept cash, give change for cash transactions, and securely store cash.
Receipt Printer: You’ll need these to print and provide customers with proof of purchase.

Methodology: How we chose the best point-of-sale (POS) systems for small businesses

We started with more than 100 POS vendors, and we narrowed that list down to our seven top recommendations.

We determined which vendors were the best through a combination of interviews, videos, live demos, and evaluations of vendor and parent company websites. We collected and verified the information before settling on the top seven. We also made sure each recommendation met the following criteria:

Pre-defined features
- Inventory management
- Customer relationship management
- Customer loyalty programs
- Gift card options
- Variety of credit card and payment options
Brand reputation
Customer service
Price Transparency

We assigned each category a score of 1 (lowest) to 5 (highest), and each rating was worth 25 percent of the total score. The result was a rating based on meticulous research, analysis, and verification.

About the Authors

Raechel Conover

Senior Writer, NAWBO Expert Reviews

Raechel covers HR, finance, technology, and small business software for the NAWBO Expert Reviews Team. As an experienced journalist and small business owner, she is passionate about helping entrepreneurs make informed purchasing decisions.

Jamie Ostroe

Editor, NAWBO Expert Reviews

Bringing more than a decade of editorial experience to the NAWBO Expert Reviews Team, Jamie is dedicated to ensuring articles are accurate and helpful. Her experience running a small business inspires her to help others choose the best products for their unique business needs.