Handling accounting and payment processing manually may be doable for small and growing businesses. But if you want your business to grow or stop wasting valuable resources, consider a payment gateway like a POS system.
POS systems offer many benefits. By using a POS system, customers don’t have to wait long hours in a queue to pay. You can ring them up with just a swipe or a few clicks.
Some POS solutions even allow you to accept different payment methods. Hence, customers can pay using whatever method they are comfortable with. And when customers don’t have to go through hassles to pay for the products or services you offer, they will likely make a repeat purchase.
If you’re ready to reap all the advantages a POS system brings, this article will give you a list of the best POS in the market, discuss a few tips to help you choose the right solution for your business, and define what this system is in the first place.
What is a POS system?
A POS system or point of sale system is typically used to process transactions, like when a customer makes a purchase. POS systems combine hardware and software to let you accept payments.
You can use POS systems to accept payments and keep track of product sales. Stores will typically have physical POS terminals. Modern wireless POS systems and applications that turn mobile devices into POS systems let you easily accept payments on the go. You can use these at pop-up stores, for deliveries, at events, and more.
How does a POS system work?
The way POS works varies depending on its features, but the process generally looks the same. It goes like this:
- Scanning the product: Your customer will bring the item to a cashier or employee, who will scan the product. This will likely be with a barcode scanner, but you can also manually enter items into the POS system. Some systems even let you scan items with a device camera.
- Displaying the price: The POS system will be programmed with all relevant pricing information and be ready to calculate sales tax. It will display the total amount owed.
- Updating your inventory: The POS system will also update your inventory by modifying records of the number of products you have in stock.
- Paying for the transaction: Your customer will pay for their purchase using a credit card, debit card, tap-to-pay, cash, loyalty points, gift card, or another method.
- Finalizing the transaction: The sale is considered complete once the customer’s payment goes through. Your customer will receive a digital or printed receipt, and your POS system will have a record of the transaction.
Why You Need a POS System
Any business that sells products and services needs a POS system. These systems are crucial for automating transactions, monitoring sales, facilitating convenient payment, and streamlining all of your records.
A good POS system lets you:
- Accept a variety of payment methods
- Easily complete sales
- Track inventory
- Monitor buying trends
- Collect data and view reports regarding purchases
- Track sales metrics and goals, including sales patterns, gross revenue, and inventory changes
- Capture data about your customers
- Integrate with other systems for even more insights
Additionally, having POS software makes your business seem more credible and professional, especially in the case of a smaller store.
It is also worth mentioning that the ability to accept multiple payment methods is crucial for business success. This capability aids businesses in meeting customer expectations and maintaining high levels of customer service. This can help you attract clients to your store over competitors. It also prevents customers from leaving mid-transaction because you don’t offer the payment method they prefer.
The 10 Best POS Systems for Small and Growing Businesses
To help save you some effort and time searching for one that suits your needs, here are 10 of the best systems built for small and growing businesses that you can check out.
1. Podium
Podium boasts marketing and communication tools designed for small and growing local businesses. The system offers Podium Payments, which simplifies the payment experience for businesses and customers.
Businesses have two options for collecting payments with Podium Payments–either through text-to-pay methods or a Podium card reader. With the former option, customers receive a text message and pay whenever they are ready. Meanwhile, the latter option allows businesses to continue their interaction with customers in-store.
Pros
- Podium’s text-to-pay feature is something you cannot find in any other solution. It’s a great option if your business is using SMS as the main channel of communication.
- The payment solution allows you to accept several payment methods, including a card on file.
- The platform is specifically designed for small and growing businesses.
Cons
- Podium is built to help small businesses, so it may not be for you if you’re running a large company.
- The software acts as a payment processing solution and does not offer add-on features yet.
2. Clover
Clover is an all-in-one POS solution specially designed for growing businesses across all industries. It is popular for its payment features but has more to offer. Some of its functionalities are the following:
- Reporting
- Employee management
- Online ordering
- Customer management
- Invoicing
Pros
- This POS solution is easy to use and set up. You don’t need to spend lots of time learning how to use it, and the hardware is ready to use out of the box.
- Clover offers many hardware and software options. There is a station duo that you can place on the counter, a flex device that allows you to process payments beyond the counter, and even a mobile app.
- You can try this solution free of charge for 30 days. After that, you can sign up for any of their three plans.
- The solution allows you to offer a Buy Now Pay Later option to your customers.
Cons
- Clover’s pricing is quite difficult to understand.
- The cost varies depending on the number of add-on features you choose and your industry.
- There are credit card processing fees and hardware costs you should be aware of in case you want to try this solution.
3. Toast
Toast is also an all-in-one, cloud-based POS system but it is specially designed for restaurants of all sizes. You can use it to take contactless payments and process debit and credit card transactions. It offers integration with several third-party applications, like Google, which offers restaurants a unique sales channel.
Aside from that, this solution has everything a restaurant owner needs to manage sales, including guest-facing, front-of-house, and back-of-house technology. Here are some of the features of the product:
- Menu management
- Tableside service
- Analytics and reporting
- Online ordering
- Contactless delivery
Pros
- Toast is easy to use and implement. It has an intuitive touchscreen design.
- The wide array of features, hardware options, and accessories allows you to manage every aspect of your restaurant.
Cons
- Toast does not allow the use of a third-party payment processing service. It means you must accept whatever fees the platform charges for payment processing.
- Toast only works on Android devices, which could be an issue for those who prefer iOS devices.
4. Lightspeed
Lightspeed is a cloud-based system geared towards retailers, restaurants, and golf. Aside from accepting and processing payments, you can use this solution to set up an e-commerce website, run reports and run and manage customer loyalty programs. Its impressive set of retail-specific features is just one of the things that makes the platform a good choice for retailers.
It also includes the following features:
- Inventory management
- Customer management
- Employee management
- Reporting
- Integrations
Pros
- No matter what plan you get, you will get one free terminal.
- It features a self-service ordering system, which can be great for quick-service restaurants.
- You can use the platform to sell goods online.
- You can track inventory across multiple store locations.
- The solution integrates with over 250 applications.
Cons
- You’ll get the lowest pricing with their annual contract, which could be a drawback for brand-new retail stores.
- The basic monthly plan costs $139 as of writing, which can be expensive for start-ups and growing businesses.
5. TouchBistro
TouchBistro is another POS system geared towards different types of restaurants, including full-service restaurants, fine dining, food truck, bar and club, breweries, and catering. But unlike Toast, this one is packed with customer-focused features and runs from an on-site server, and saves data in the cloud. It works on iOS devices.
Features include but are not limited to the following:
- Table management
- Reservations
- Tableside Ordering
- Inventory management
- CRM platform
- Loyalty programs
- Reporting and Analytics
- Staff management
- Integrations
Pros
- The system works offline.
- You can integrate the software with multiple payment processors.
- You can choose which features to add to your plan, so you don’t have to pay for functionalities your business does not need yet.
Cons
- The software price as of this writing starts at $69. But if you need to use more features, like online ordering, there will be additional charges. The add-on fee varies depending on the feature.
- The number of applications the software can be integrated with is limited.
6. Square
Square is a cloud-based POS system that can be used by businesses of all sizes but is popular among start-up and growing businesses. It is mainly because of its affordable fee structure. It has a free plan and offers a flat transaction fee structure. It means the platform bases its price on the user’s sales. Paid plans are also available for those who are looking for more features.
In terms of features, even the free plan offers comprehensive functionalities. Here are a few of them:
- Accepts credit cards, Apple and Google Pay, and other touch-free payments
- Dispute management
- Fraud protection and monitoring
- Item modifiers
- Integrated hardware
- Order Manager
- Contact management
- Online Ordering
- Inventory management
- Team management
Pros:
- Square is free to use.
- It also works with Android and iOS devices and Square hardware.
- The system is available in Spanish and English.
- It readily integrates with other Square tools.
Cons
- There have been reports of account stability issues.
- There is no phone support for customers.
7. Zettle by PayPal
Zettle, formerly PayPal Here, is a feature-packed POS system that allows you to accept mobile and a variety of in-person payments via your PayPal account. Hardware options include Bluetooth card readers, iPad checkout stands, and mobile POS systems. The platform works on Android and Apple devices.
Unlike any other POS solutions, Zettle does not offer monthly plans. You only need to pay for the hardware once and then the payment processing fees. The accounts can be created for free. If you are already using PayPal to manage online payments, Zettle is a natural choice if you’re considering accepting in-person payments.
Despite the price, this POS still gives you a solid set of features that makes selling and payment collection fast and easy. Here are a few of them:
- Accepts Mastercard, American Express, Visa, and Discover credit and debit cards, PayPal, Samsung Pay, Apple Pay, Google Pay, and more.
- Customer tracking
- Product data
- Inventory tracking
- Invoice tracking
- Sales reports
- Gift cards
- Refunds
- Seamless checkout
- Accounting integrations
Pros
- No monthly or recurring fees. The platform charges per transaction.
- Solid basic features
- Allows you to track all sales channel payments in a single PayPal account
Cons
- The system does not work offline and you can’t add features.
- Transaction fees are quite expensive.
8. Upserve
Upserve is a cloud-based POS system geared toward restaurants. It combines payment processing with restaurant management features, helping businesses to manage their entire restaurant operation.
Upserve can be a good option for restaurants that are often busy or have multiple locations. It offers a wide array of functionalities, including the following:
- Payment Processing
- Sale Reporting
- Marketing Insights
- Menu Optimization
- Online Ordering
- Inventory
- Server Performance
- Dedicated Success Manager
- Custom Reporting
- Data API Access
Pros
- The system can be used even without an internet connection
- It offers easy onboarding, thanks to employee training mode.
- You also get unique reporting capabilities and round-the-clock customer support.
Cons
- Small business owners may find the platform expensive. Their package starts at $59, and you have to pay an additional $60 for every terminal you use.
- You need to pay for every feature you add to the basic plan, which can increase the price of the platform significantly.
9. CardConnect
CardConnect isn’t your typical POS system. It offers several merchant services, including Contactless Payments, CoPilot, Bolt, Gateway and Plugins, Clover, and CardPointe. CarPointe and Clover are the POS tools.
CardPointe is the primary product offering of CardConnect. It is a cloud-based payment processing system that allows you to accept various payment methods, like debit cards, credit cards, and e-check. It also comes with hosted payment pages and free mobile apps.
On the other hand, Clover is a credit-card POS system that you can integrate with CardPointe. It allows you to do more than just accept payments. Here are some of its features:
- Fast Orders + Checkouts
- Detailed Reporting
- Gift Cards
- Customer Engagement
- Integration with 300+ apps
Pros
- Offers data security with point-to-point encryption (P2PE) and tokenization. Both help protect payment information from abuse or theft by hackers.
- Integrates with most POS systems, allowing businesses to process transactions in-store or accept online credit card payments using their existing software.
- Customizable; there are 425 applications available.
Cons
There is a high termination fee.
The platform also offers lengthy contract terms.
10. Helcim
Helcim is a merchant software that doubles as a point-of-sale system. Like other software in this list, Helcim also offers an impressive range of tools that enables users to do more than just process payments.
It comes with the following features:
- Inventory management
- Analytics, reporting, and insight
- Employee management
- Fraud prevention
- Mobile app
Pros
- Transparent, competitive pricing. You can view all their processing rates on their website–no need to contact the provider to get pricing.
- No monthly fees or long-term contracts needed. You can cancel your contract with no termination fees.
- Professional customer service.
Cons
- The only available hardware is a Card Reader
- It is a bit expensive for small businesses that process lower volumes every month.
Not all POS solutions will suit your business needs. If you’re trying to get a POS system to use for the first time, doing your homework is crucial. Below are a few tips on how to choose the right POS system for your business that hopefully helps you in your journey.
How to Choose the Right POS System for Your Business
Choosing the best POS system for your small business will depend largely on your needs and your budget. As mentioned, there are now many applications that let you turn your smartphone or tablet into a POS system. As such, you don’t necessarily need hardware, although it can still be incredibly helpful.
As you compare point-of-sale equipment for small businesses, ask yourself a few questions:
- How many terminals do you need?
- Do you plan on expanding in the near future?
- Are you switching from a different system or starting from scratch?
- What do you need your system to do?
- What are the biggest challenges that you hope your POS system will overcome?
Most businesses will benefit from the following software and hardware features on their POS system. Even if you only need a small business POS system, these features ensure that each sales transaction goes smoothly and is accurately recorded.
POS software features to look for:
- Credit card processing
- PCI compliance and security
- Acceptance of chip cards
- Acceptance of mobile payments
- Support for tipping (if applicable)
- Text-to-pay options
- Inventory management
- Refunds and returns
- Invoices and billing
- Reporting and analytics
- Customer support
- Ecommerce flexibility
- Customer engagement and customer-facing experience
- Integrations
- Employee management (or integration with your system)
- Customer relationship management (or integration with your system)
- Accounting
POS hardware features to look for:
- Display screen
- Credit card reader
- Receipt printer
- Barcode scanner
- Cash drawer
- Portability
- Scales (if applicable)
- Self-ordering kiosks (if applicable)
- Kitchen printers (if applicable)
Other Features to Consider
In addition to the specific hardware and software features to look for in a POS system, you will also want to pay attention to pricing. Most POS systems will have an initial cost for the hardware and a monthly cost to use the software. The cost of the software will vary depending on how many features and capabilities are included.
When calculating prices, remember to account for the payment processing costs, especially if your chosen POS system only works with a specific payment processor.
You also want to consider how user-friendly the system is. You don’t want your team to have to call support or consult the manual constantly. An intuitive POS system also ensures shorter onboarding or training sessions, allowing your staff to focus on more important tasks.
Think about the future of your company and whether your chosen POS system is scalable. Can you easily add additional terminals as your business grows?
Don’t forget to pay attention to the company offering the system as well. You want to buy from a financially viable, well-established company with a strong reputation. This will help ensure the quality and functionality of the system.
It’s also smart to look for the best POS systems for small businesses that are specific to your industry. You don’t need your point of sale (POS) system to be fully customized to your business, but it should be regularly used by other businesses in your niche. This will confirm that your fellow small business owners have access to the features you need. After all, retail POS systems and restaurant POS systems will have very different needs.
Modernize Your Payment Collection Process
These days, it is no longer enough to just accept cash and credit card payments. If you want to have an edge over the competition and grow your business, you need to modernize your payment collection process. Here are a few ways you can do it:
- You need to accept chip cards and tap-to-pay cards to appeal to a wider audience. You should also accept mobile payments via digital wallets.
- Think outside the box and do what you can to accept more modern payment methods, such as text-to-pay. This feature is growing in popularity because of the convenience it provides.
- If you start offering additional payment methods or you upgrade your systems, let your customers know. They will be happy to learn they can text-to-pay or use their tap-to-pay credit card. They will appreciate the extra security of using a chip-enabled credit card instead of having to swipe it.
Podium is an excellent option for those in search of a way to accept more payment methods. Podium offers personalized features for your business and industry and the features your customers want, such as text-to-pay. You also get access to high-quality hardware along with integrations that provide insights.
Best of all, it seamlessly integrates with all of the other Podium services, from gathering reviews and generating review links to gathering customer data and leads. Podium has also helped boost businesses’ marketing efforts with its text marketing solutions and web chat.
POS System FAQs
What types of businesses use POS systems?
A POS system is like a cash register at a store that can do more than just store money. So, any businesses that sell products or services, whether online or in-store, often take advantage of this system. These systems are most commonly found in retail shops and establishments and restaurants.
What is the best POS system?
It generally depends on your industry and business needs. For example, if you are running a restaurant, the best POS would be the one with restaurant-specific features.
To determine the best POS system for your business, follow our tips above. Researching may take some time, but it will help ensure you’ll get the solution that fits your business’s current requirements.
What are the main features of a POS system?
POS features vary from one provider to another, but common features these systems share include billing and order processing, omnichannel capability, inventory management, employee management, reporting and analytics functionality, and loyalty program tracking.
When does your business need a POS system?
It’s best to invest in a POS system from the moment you start your business. This will prevent you from getting stuck in tedious tasks like updating your books. The system also makes the checkout experience easier for your team and your customers.
Some POS systems can be used for free, so you might as well take advantage of it. You just upgrade to a paid plan when your business starts growing.
