The best POS systems for small businesses are affordable, easy to use, and packed with tools for managing sales, inventory, employees, and customer loyalty. Most offer free plans or low-cost subscriptions, making them accessible to startups and growing retailers alike. Whether you need a simple mobile POS or advanced multi-location support, there’s a solution for…
The best POS systems for small businesses are affordable, easy to use, and packed with tools for managing sales, inventory, employees, and customer loyalty. Most offer free plans or low-cost subscriptions, making them accessible to startups and growing retailers alike. Whether you need a simple mobile POS or advanced multi-location support, there’s a solution for every business type.
I tested over 20 point-of-sale systems across 32 data points, including pricing, features, integrations, and real-world usability, to find the top options for 2025. Based on this evaluation, here are the best small business POS systems:
Want to learn more about what it’s like using Square as a POS system? Check out our full Square Register video review:
Advertisement
Shopify: Best for retail & ecommerce
Want to see Shopify POS in action? Check out our setup tutorial:
Toast: Best restaurant POS
Want to learn more about what it’s like using Toast as a POS system? Check out our full Toast POS video review:
Advertisement
GoDaddy POS: Best in-person flat-rate pricing
KORONA POS: Best payment processor-agnostic POS
Advertisement
POS Nation: Best for selling age-restricted products
Clover: Best for mobile sales
Advertisement
Lightspeed: Best for inventory management
Want to see some of Lightspeed’s inventory tools in action? See our video overview:
Methodology: How I evaluated each POS system
I started with a list of over 20 best POS systems for small businesses. I then evaluated them by price, POS functions like check and order management, payment processing, and inventory management. I also looked at user reviews and, in many cases, demoed the products firsthand and leveraged my experience using the systems in the past.
Click through below to see my full evaluation criteria:
Pricing (30%): I prioritized POS systems that include a free plan or free trial, affordable subscriptions, and additional plans so that you won’t grow out of the system. I also awarded points to systems with affordable integrated payment processing, flexible hardware options, and no restrictions on the number of users, inventory, and transactions. Finally, I penalized systems that require long-term contracts and hefty installation fees.
Register features (20%): Businesses need speedy and customizable checkout tools, easy customer management, mobility to sell anywhere, a process to track orders, and a way to process online orders. Because the way businesses operate has changed so much in recent years, I also considered contactless payments, integrated online ordering, and omnichannel sales tools.
Management tools (15%): The most important backend feature I considered was inventory tracking. I also considered how sophisticated and user-friendly the reporting dashboard of each system is and what marketing and employee management tools are available.
Ease of use (15%): I prioritized POS systems with 24/7 phone support, as most small businesses don’t stick to a 9-to-5 schedule. I also considered the installation processes and whether the system has an offline mode or hybrid installation so that you can continue operations when you lose internet access. Training mode or training videos are also helpful in getting new employees up to speed. But, most importantly, I examined the workflows and interfaces of the systems. Are they intuitive? Is it easy to find and complete daily functions? This weighed heavily in my overall recommendations.
Expert Score (20%): I considered the overall quality of each system’s features, along with system stability, and security. I evaluated whether it offers a good value for its price point and standout features. Finally, I accounted for all of our on-staff experts’ personal experience using each system and interacting with customer service representatives (CSRs), its reviews, and the personal experience of other small business owners.
Advertisement
How much does a POS system cost?
There are three major costs to consider when buying a POS system: hardware fees, software fees, and payment processing fees.
Software fees are typically billed on a monthly or annual basis and can range from $0 to $300 per month per terminal.
Hardware is typically an upfront cost of $250 to $1,000 per terminal, though some POS systems, like Toast and Square, offer financing and payment plan options.
You will also want to consider payment processing fees and whether you will be using a processor that is built into your POS system or a third-party processor.
In addition, though you ideally won’t be switching POS systems anytime soon after making your choice, it is worth noting that some lock you into an initial one- or two-year agreement, whereas others, like Square and Shopify, offer month-to-month plans.
Finally, though most popular POS systems offer free DIY installation, more complex setups will require professional installation, which costs at least $500.
Here’s a rough breakdown of how much each of my recommended systems cost:
2.3% + 10 centsFor certain QSR plans. Most retail and service businesses will have processing fees of 2.6% + 10 cents. Based on Clover.com pricing. Will vary if purchased from a reseller.
When choosing a POS system, it’s essential to understand the key hardware and software features that will best support your business. Modern POS systems come with a wide range of capabilities, so selecting the right features can streamline operations and improve efficiency. Common features small businesses benefit from include the following:
Sales tracking: Logs sales and tracks them by product, time, and staff member.
Payment processing: Handles various payment types, including cash, credit cards, and digital wallets.
Inventory management: Monitors stock levels, alerts for low stock, and assists with resupply orders.
Reporting and Analytics: Analyzes sales, discounts, voids, and other data to help identify trends.
Customer relationship management (CRM): Gathers customer data and logs purchase history for targeted marketing.
Marketing and loyalty: Offers promotional tools based on customer segmentation.
Employee management: Tracks staff hours, sales, and tips, with specific permission levels for tasks.
Ecommerce and multichannel sales: Integrates online sales with physical store data for comprehensive reporting.
Multistore management: Centralized dashboard for managing multiple locations.
Third-party integrations: Customizes operations by integrating with software for payroll, accounting, and scheduling.
These features help businesses automate tasks, save time, and improve customer experiences.
How to choose a POS system for your small business
Choosing the right POS system involves assessing your business’s specific needs, setting a budget, and reviewing potential systems. To make an informed decision:
Step 1: Identify your needs
Start by listing the tasks you want the POS system to assist with—like inventory management, sales tracking, or employee scheduling. Focus on features that will enhance your day-to-day operations, streamline processes, and reduce manual effort.
Step 2: Set a budget
Your next step is to set a budget. You’ll want to consider three types of costs: hardware costs, software fees, and payment processing fees. There are POS systems available at every budget, from $0 upfront and $0 per month, up to the thousands of dollars.
Even with a small budget, you rarely need to skimp on POS software functions. The biggest cost differences come from hardware and the type of installation your POS requires (industry-grade hardware and a locally installed server are the most costly; iPad displays and cloud installation are very affordable).
If you anticipate the ballpark prices below, you’ll rarely be surprised:
POS upfront cost: $0 to $1,000-plus for hardware and installation
POS monthly software fees: $0 to $100-plus per month
Payment processing fees: 2.3% to 4% of credit, debit, and mobile wallet sales
If your budget is tight, you can save money upfront by opting for an iPad POS like Square (which offers a free baseline subscription) or choosing a system that allows you to pay as you go for hardware, by opting into higher processing fees, such as Toast.
Advertisement
Step 3: Schedule POS demonstrations
Once you have a list of needs and a budget, schedule demos with several POS providers. These demos give you a hands-on feel for the system and let you ask questions specific to your business. After the demo, the provider will likely offer a custom quote based on your requirements, including hardware, software, and payment processing fees.
Compare quotes and notes from each demo to find a system that fits your budget and meets most of your needs. Keep in mind that some providers may require long-term contracts, while others like Square or KORONA offer flexible, no-contract options.
Frequently asked questions (FAQs)
Square is the best POS system for most small businesses because it offers a free plan, built-in payment processing, affordable hardware, inventory tools, reporting, and online selling features. Shopify POS is better for ecommerce sellers, Toast is best for restaurants, and Helcim is best for low-cost payment processing.
A POS system is hardware and software that lets a business process sales, accept payments, track inventory, manage customers, and view reports. Modern POS systems can also support online sales, staff management, loyalty programs, and multi-location operations.
Square is the best free POS system for most small businesses because it has no monthly software fee, includes basic inventory and reporting, and supports in-person, online, and mobile sales. The main trade-off is that you must use Square Payments.
A POS system can cost $0 to hundreds of dollars per month for software, plus payment processing, hardware, installation, and add-ons. Total cost depends on your business type, number of registers, transaction volume, and needed features.
Lightspeed Retail is best for inventory-heavy retailers, while Square is better for small retailers that want an affordable, easy-to-use POS. Shopify POS is the better choice for retailers that sell both online and in person.
Toast is the best POS system for restaurants because it includes restaurant-specific tools for menus, tipping, tableside ordering, kitchen workflows, online ordering, and food service reporting.
Look for payment processing, checkout tools, inventory management, reporting, hardware options, offline mode, customer tools, staff permissions, integrations, support, and pricing that fits your business size and sales volume.
Bottom line
The best small business POS systems provide small business owners with more than simply a way to accept payments. POS trends such as mobile-first technology mean businesses can sell products and services anywhere, anytime. Artificial intelligence (AI) developments in POS software mean that instead of telling businesses how much product they have on hand, POS systems can tell businesses exactly what they need to order and in what quantities.
The best POS software combines analytics and ease of use at a price point that is accessible for small businesses. Square POS is free to use, and its core features are powerful enough on their own that you may not even need the optional add-ons to build out the POS system. If you do opt to upgrade, you’ll still likely pay less than some other POS systems. Get a free account today.
Agatha Aviso is a seasoned expert in retail, eCommerce, and order fulfillment, with a specialization in payments, POS systems, and eCommerce software. She has collaborated with startups and service-based entrepreneurs on content strategy, offering digital marketing expertise and guiding small business owners in launching their online storefronts.
Beyond consulting, Agatha applies her knowledge firsthand—building her own website as well as ecommerce sites for the platforms she reviews.
Loading more content…
Our mission is to provide small business owners with the information you need to succeed. Learn how to start, market, run, and grow your business today!
Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.
