Best POS Systems for Small Businesses: Strengths, Weaknesses and Test Results

The best POS system for small businesses is Square, offering excellent hardware solutions, helpful support options, and affordable pricing plans. Plus, with a free forever plan that allows you to sell, it’s arguably the most accessible POS option for small businesses on a budget. But that’s not to say that another system won’t be a better fit for your small business.

A POS system can help your small business boost efficiency and make more money by quickly processing a range of transaction types, as well as analyzing sales data, and managing employees. But with pricing plans and feature sets varying from provider to provider, it’s important to understand precisely what you’re paying for.

To help, we’ve put a range of top POS systems through their paces with extensive hands-on testing, to help you find the right one. In this guide, you’ll learn about all the features, pricing, and other information that’s important to choosing a POS for your small business.

In this guide:

• Best POS Systems for Small Business
• How Much Should a Small Business Pay For a POS System?
• What’s the Best Free POS Software?
• How To Choose the Best POS for Your Small Business
• How We Researched the Best POS Systems For Small Businesses
• Verdict: What Is the Best POS System for Small Business?

Best POS Systems for Small Business

The information on this page is based on Tech.co’s impartial research and testing of POS systems, taking into account pricing, customer support, hardware options, software functionality, and overall usability, for a variety of industries, including hospitality and retail POS systems.

Check out our research page to learn more about how we rate and rank these POS providers, and check out the table below to see how these providers match up on the basics:

1. Square – Best for Small Businesses Aiming to Expand

• Price: Free (with transaction fees)

One of the leading names in POS technology, Square is uniquely positioned to provide serious scalability for virtually any kind of business. That starts with the robust free plan, which can get you started at absolutely no cost to your business. You will have to endure transaction fees, but if you’re on a tight budget, it’s a great way to ensure you aren’t going over before making a sale.

Beyond that, though, Square is a highly functional, yet notably intuitive platform that provides advanced features for ecommerce integration and inventory management.

In fact, we found Square to be the best POS system for restaurants and retail stores in our in-depth research – it has features like floor plan customization and automatic restock scheduling, which rivals like LightSpeed doesn’t provide. This makes the POS a particularly favorable option for businesses that regularly experiment with floor plans, as well as those with high stock turnovers,

The Square POS uses clearly marked fields and a drag-and-drop editor to help guide users through item creation. Source: Tech.co user testing

To pile on the compliments even more, Square retails its own line of hardware, from mobile terminals right up to register kits. They’re among the sleekest-looking in the industry too – you don’t want your staff dragging around beefy, outdated card machines or bashing orders into an ancient POS terminal if possible.

The price of Square’s hardware is ideal for small businesses, and with research showing handheld POS systems can help restaurants turn tables 15-20% faster than businesses that don’t, Square’s mobile terminals are also useful for those looking to trim down service time.

However, when it comes to software usability, it’s more of a mixed bag. According to our team of user testers, handling some processes was quite easy with Square, including adding orders and uploading products. Yet, it took them a lot more time to work out how to complete slightly more complex tasks like splitting payments by item and percentages. We also found it a little bit tricky to add a batch of items to an order at one time, with one tester admitting they did find this process “a bit clunky”.

While this shouldn’t pose problems for smaller businesses like pop-up sellers or food trucks, it could be a sticking point for businesses with complex operations like established restaurants or retailers.

We found certain tasks with Square slightly clunky, like adding items to an order and splitting payments by percentages. Source: Tech.co user testing

Most suitable for:

• Establishments with one to three locations
• Businesses that want to start selling for free
• Mobile sellers like pop-up shops and food trucks

Less suitable for:

• Large restaurants that want ingredient tracking features
• Businesses that need a training mode for new employees
• Businesses after ultra-low card processing fees

Square POS pricing 

One of the features of Square POS that makes it our topic pick for small businesses is that it offers its software at no cost to users. That’s right, you can get access to a wide range of features and functionality without having to pay a monthly fee.

You can even get some basic hardware, the Square Reader, for free, although they’ll cost $10 each after the first one. Plus, you will have to pay transaction fees, but overall, this free plan helps to make Square Online our top POS for small businesses.

Beyond the free plan, Square’s affordable software and hardware and low-cost plans earned notably high scores for pricing. This cemented its petition as the best value POS we reviewed overall, making it a great option for businesses with smaller budgets.

For small businesses willing to pay a premium for more comprehensive features, like 24/7 support and reporting tools, Square does also offer separate Retail Plus and Restaurant Plus plans.

Check out our full guide to Square POS pricing to learn more

If you like Square, you might also like…

• Zettle By PayPal. The POS also has a generous free plan and is ideal for businesses that want a simple tablet-based setup
• Clover, if you’re after slightly more advanced features like ingredient-level stock tracking

2. Clover – Best for High Quality Hardware

• Price: Free (with transaction fees)

There’s something to be said for a POS that prioritizes hardware, and that’s absolutely Clover. This platform offers the highest quality terminals, along with a range of accessories that can enhance them even more. What’s more, despite Clover’s sophisticated capabilities, our first-hand user testing found it was the easiest POS to use, making it a great fit for small vendors and established businesses alike.

High-tech features like fingerprint scanners for staff login are paired with easy-to-use frontend and backend interfaces with tactile feedback. For businesses with large teams, this feature helps to make the employee clocking in and out process more secure. This also instills a bit more confidence in interactions, as you’ll know exactly when the device registers your touch. Some hardware devices even have LTE connectivity, so you can still utilize them if the Wi-Fi goes out.

Setting up customer profiles was straightforward with Clover. I could even include payment information that was associated with the customer. Source: Tech.co user testing

If finding a POS with a learning curve is a top priority for you, Clover should be on your radar. When our team of testers used the system, they were blown away by how intuitive its software was, specifically one user said that assigning items to different items, separating orders by customers, and using reporting tools to measure performance was “so easy” and “so simple”.

For smaller businesses, though, Clover can be a bit expensive. There is a free plan that can get you started with the software on nothing but transaction fees, but the hardware means that upfront costs are still going to be high. There is a basic card reader for only $49, though, and other high-tech hardware options offer financing options, so it’s not a huge obstacle for those with a smaller budget.

Another spot where Clover really shines is its robust set of analytics tools, which can help you with everything from real-time sales and cost tracking to order efficiency. Plus, with great hardware like Clover’s, you can really dig deep into what’s working for your business, and what isn’t.

Check out our head-to-head comparison of Square vs Clover

Most suitable for:

• Larger retailers and full-service restaurants
• Sellers after low transaction fees
• Users that prioritize intuitive software

Less suitable for:

• Businesses with pre-existing hardware
• Sellers wanting to low or free start-up costs
• Businesses that sell online, as well as in-store

Clover POS pricing 

Clover’s price points are a little complex and monthly costs depend on which industry your working in, either retail, services, or food and beverage. As we mentioned, there is a free plan, but only for retail and service industries, as restaurants will have to go with either countertop or full-service options.

The lowest price that all industries can get started at is $14.95 per month, which gives you access to the Essentials platform, representing a competitive option for advanced analytics and impressive functionality.

Check out our Clover pricing guide here for more information

If you like Clover, you might also like…

• Square, if you’re a smaller retail store or restaurant that wants to avoid hefty start-up fees
• Shopify, if you’re a fan of Clover’s streamlined user experience, but want to sell online as well as in person

3. SpotOn – Best for Businesses That Need No Upfront Expenses

• Price: From Free (with transaction fees)

If you’re a small business that needs to get started with truly no upfront cost to your budget, SpotOn is where you want to go. Yes, Square can get you started with software, but hardware options are going to cost you actual money. SpotOn, on the other hand, will allow you to get started with software and hardware for nothing more than transaction fees. You’re essentially financing the hardware with transaction fees, while paying no upfront or monthly fee.

Also, to be clear, SpotOn is specifically designed for restaurant POS functionality, so retail stores won’t be able to take advantage, but all types of restaurants can take part, from full-service to countertop. Plus, with its Teamwork app built-in, you can effortlessly access team management, cost projections, and payroll while on the go.

We found SpotOn generally pretty easy to use too, considering its impressive suite of features. Yet, one of our first-hand user testers was frustrated when they were trying to create a custom floor plan, as the POS doesn’t have a drag-and-drop builder like Square or Clover.

“Frustration came with little things like when creating the floor plan, you had to click an add or minus button… and I was just like, why can’t it just be drag and drop?” – A member of Tech.co’s user testing team

If you were dead set on tablet usage for your POS system, though, you are out of luck. SpotOn only works with its own hardware, so you won’t be able to use the software on any third-party devices. Still, as a low-risk option with no upfront costs, you could do a lot worse than SpotOn.

Check out our SpotOn review for more information

Most suitable for:

• Businesses looking to get started for free
• Counter-service restaurants
• Managers that want to streamline employee processes

Less suitable for:

• Full-service restaurants or large retailers
• Businesses that want a tablet-based POS

SpotOn pricing

The free plan from SpotOn is very attractive, but the paid plans are quite competitive as well, with reasonable rates for both countertop and full-service restaurants. The hardware, on the other hand, is quite expensive, but the financing options ensure that you won’t have to take a big hit right as you’re launching your restaurant.

If you like SpotOn, you might also like…

• Square, if you run a smaller food business that is able to get by with a slightly more limited free plan
• Clover, if you’re a larger establishment that requires a more complex hardware set up

4. Lightspeed Restaurant – Best for Fast Growing Businesses

• Price from: $69/month

As you can guess from the name, Lightspeed is similar to SpotOn, in that it only offers functionality for restaurants. And in the case of Lightspeed Restaurant, it’s uniquely equipped to handle quickly scaling restaurants with a myriad of helpful features geared towards facilitating and managing growth.

If your business manages large or complex stocks, you’ll find that the POS will be able to meet your needs quite easily. Inventory management is where Lightspeed Restaurant really shines, with plenty of features allowing for the addition of new, more complicated products.

What’s more, when we tested Lightspeed Restaurant’s software, we were specifically impressed with the systems folder and table system, and how effective it was at simplifying the stock management process, with one tester expressing how much easier the “table system made it to order things”. 

On top of that, it offers intuitive staffing tools to bring on and train more employees as the need increases. Finally, the built-in loyalty program is designed to help you grow and attract more customers along the way.

Again, to be clear, though, Lightspeed is also the opposite of SpotOn, in that it offers no hardware options at all; it only offers tablet functionality. So if you were hoping to get your hands on an actual POS terminal, rather than just an app on a tablet, you need to look elsewhere.

Most suitable for:

• Food and beverage businesses looking to expand
• Businesses with large or complex inventories
• Vendors serious about protecting profit margins

Less suitable for:

• Businesses that want to get started for free
• Vendors after an all-in-one POS terminal
• Businesses owners that want low transaction fees

Lightspeed POS pricing 

There’s no way around it, Lightspeed is expensive. With no free plan and a starting plan that costs approximately double the other starting plans on this list, it’s safe to say that Lightspeed is going to cost you a pretty penny. This makes sense, given its status as an option for larger businesses, just make sure your budget can handle it before making a decision.

Check out our Lightspeed review for more information

If you like Lightspeed Restaurant, you might also like…

• Clover, if you manage a full-scale restaurant and need a sophisticated hardware set-up to match
• Square, if you don’t require tons of sophisticated features and want to get started for free

5. Shopify – Best for Online Sales

• Price from: $5/month

The idea of using Shopify as a small business is likely a bit daunting, considering its a massive ecommerce platform for larger enterprises. However, the reality is that Shopify is equipped to handle the online sales of any size business, with offerings that are affordable and scalable for your team. Therefore, if your business sells in person and online, Shopify should definitely be one to consider.

As you can guess, the Shopify POS integrates flawlessly with the Shopify ecommerce platform, so you can easily track stock between both online and in-person stores with the unified dashboard. Even better, Shopify offers omnichannel functionality, so you can sell across a wide range of channels, including social media and other online platforms.

The POS is generally really easy to use too. Our team of user testers found its software to be extremely responsive, with changes made on the back end instantly appearing on the front end. Shopify’s interface is very modern as well, and its tile system makes adding individual products a breeze. Our testers also found that while the POS was tailored well to businesses with multiple collections of products, this perk may be lost on smaller retailers.

“It was very responsive. As soon as you did something on the back end, it would appear on the iPad straight away.” – A member of Tech.co’s user testing team

The downside of Shopify is that it charges some pretty hefty transaction fees, which can make it a tad expensive. On top of that, Shopify doesn’t have any concrete hardware options. Instead, you’ll have to just use the iOS app on an iPad, which in the modern era, shouldn’t be a dealbreaker for most businesses.

Shopify’s expansive app store let me integrate my POS with a wide range of apps. Source: Tech.co user testing

Most suitable for:

• Retailers that also sell online
• Businesses with large or complex stocks
• Sellers looking to sell through social media

Less suitable for:

• Restaurants or hospitality businesses
• Established retailers without an online presence
• Retailers on a tight budget

Shopify pricing

As far as price is concerned, Shopify is on the more expensive side of the spectrum. It does offer a $5 per month Starter plan, which is very affordable, but the transaction fees are through the roof and its functionality is quite limited. Even for small businesses, the Retail plan at $79 per month is likely your best bet, if only to keep those transaction fees down.

Here’s how the two Shopify POS plans match up against each other:

If you like Shopify, you might also like…

• Square, if you want to sell online with useful ecommerce integrations, but don’t want to fork out on pricey monthly plans
• Lightspeed Retail, if you onboard regularly and would prefer a training mode for your staff

6. Epos Now – Best for Businesses That Onboard Regularly

• Price from: $39 per month/$299 (one-time fee)

Epos Now is a very solid option for businesses that onboard and train staff on a regular basis, and would rather handle employee management processes directly through their POS. Unlike most other alternatives on this list, Epos Now offers a dedicated training mode that helps starters get to grips with the system without risking comprising POS data.

On top of how notably affordable Epos Now is in the long run, it’s also a respectable service. The software is easy to use and gives users access to the backend directly from the terminal, so you can make changes on the fly, like price fluctuations and sales reports.

Epos Now does come with some caveats, though. Our first-hand user testers found that, while the backend access was nice, the front-end functionality posed some customer management problems, like difficulty with order splitting. However, if you’re willing to endure some small issues for no monthly charge, it’s definitely worth it.

Learn more about the provider’s capabilities in our Epos Now POS review.

Epos Now’s new AI customer service Sidekick feature responded to my queries instantly. Source: Tech.co user testing

Most suitable for:

• Businesses with large or complex inventories
• Managers who want support with pricing products
• Businesses after a straightforward set-up process

Less suitable for:

• Businesses that want to avoid start-up fees
• Businesses using a POS for the first time
• Users who rely on social media for help and support

Epos Now pricing

As we mentioned, the pricing for Epos Now is what makes it so attractive for small businesses, as you can get access to good hardware and software solutions for a single fee, eliminating the regular monthly fee and saving you a bundle in the long run. Prices are pretty high, though, although some discounts give you options as low as $299 total.

There’s also a way to pay monthly, which Epos Now will let you do for $39 per month, according to their website. However, this works out as more expensive than the single fee if you’re planning to use the system for longer than a year.

If you like Epos Now, you might also like…

• Square, if you want to avoid up-front costs, but still benefit from useful features like automated tip-sharing
• TouchBistro, for a restaurant-focused POS system that’s slightly easier to use than Epos Now

How To Choose the Best POS for Your Small Business

While some POS options rank higher overall, no system will be suitable for every small business. There are, however, a couple of important things to bear in mind when you’re searching for your best fit.

• Your budget – If you have limited means, only choose plans that offer the features you need. By avoiding packages with advanced capabilities like site-to-site communication and omnichannel selling, you’ll be able to secure a package that benefits your business, without overpaying for unnecessary functions.
• Ease of use – Selecting a POS system with a good user experience is essential, especially if you’re new to the software. We’d recommend considering systems with a simple, modern interface, and training features to help new recruits get to grips with the software.
• Integrations – If your business already uses certain software, you should only be considering POS systems that can readily integrate with this software. This will enable you to sync business data across multiple platforms and improve your overall efficiency. Check out our guide to POS integrations to learn more.
• Help and support – Every sale counts for a small business. So picking a system with reliable help and support options is an effective way to keep technical disruptions at bay. You should also make sure their channels are compatible with your needs, i.e. would you rather access support through live chats or phone lines?
• Your industry – A retail store won’t rely on the same features as a fast food restaurant. Therefore, to make sure you’re getting the most out of your POS system, we recommend you select options that were designed with your industry specialism in mind. 

While these are all important, Julia Lozanov, a POS expert and marketing manager who recently spoke to Tech.co about their experiences with POS systems, told us that ease of use is among the most key:

“A crucial tip for POS beginners is to prioritize user-friendly systems. Look for intuitive interfaces, clear instructions, and easily accessible support channels.” – Julia Lozanov, Chief Editor at Verpex

Julia’s right – we test POS systems all the time, and there’s actually quite a wide range of interface designs, meaning some are a lot more tricky to get to grips with than others.

If you’re completely new to the technology and this all sounds a bit overhwelming, Don’t sweat it. You can read our small business guide to work out how to use a POS system.

How much should a small business pay for a POS system?

The price of a POS can vary wildly. However, as a general rule of thumb, small businesses can expect to pay anywhere from $40 to $100 per month for a single registered system. 

Typically, systems at this price point will contain a suite of basic tools and services. There are, however, loads of promising POS solutions available within this price range, so if you run a small or growing business rest assured that you can find a reliable, feature-rich system without breaking the bank.

If you’re after slightly more premium options, some more advanced POS systems could easily exceed $100 per month. For this price, you can expect customizable features, strong CRM and analytics tools, and multiple licenses. While these systems may not be available to those with smaller budgets, their ability to improve return on investment (ROI) means that they often pay for themselves over time. 

Downtime-minimizing features to look for

POS systems are unique in the business software world, as the importance of being and staying connected is unrivaled. While weak internet connection may slightly inconvenience business software users at the office, POS systems need to always be connected to input food orders, accept payments for products, and generally run a business. Subsequently, having a POS system with certain features to help can go a long way.

For starters, make sure your POS system comes with an offline mode. This will allow you to still accept payments and run your business, even if the internet goes out. Additionally, some POS systems work on mobile devices, so you can simply switch over to cellular data if Wi-Fi issues arise.

Finally, if you want help fixing these kinds of problems, a POS provider with 24/7 live support will be key. You’ll be able to get in touch with an actual person any time of day, so any connectivity problems won’t last until the next day.

POS Software Features

• Loyalty programs
• Inventory management
• Transaction history
• Returns and refunds
• Customer relationship management (CRM)
• Reporting and analytics

POS Hardware Features

• Accept transactions
• Touch display
• Tip functionality
• Digital and paper receipts
• Floor plan and table management
• Guest feedback

Andrei Vasilescu CEO of DontPayFull told us what to look out for when buying a new system:

“When you’re running a small business, finding the perfect Point of Sale (POS) system is like hitting the jackpot, but it’s not always straightforward. You want something that makes transactions smooth and quick—nobody likes to wait in line because of a slow checkout.” –CEO of DontPayFull, Discount provider, Andrei Vasilescu

We also asked POS and Savings expert Dr. Thanu Jey for their thoughts on choosing the right system:

“Invest in a POS system that balances cost with functionality. Starting costs can vary, but choosing a system that scales with your business without breaking the bank is key.” – Saving Expert Dr. Thanu Jey

What’s the Best Free POS Software for Small Businesses?

With experts forecasting that consumers are about to tighten their belts, lots of small businesses are dealing with margins that are tighter than ever. But fortunately, if you’re looking to scale back your costs, there are lots of quality POS systems available for free. 

According to our own research, the best free POS software for small businesses is Square POS and Zettle by PayPal. Both systems are completely free and offer useful tools like sales and analytics tracking and CRM software. It should be noted, however, that while Zettle and Square’s POS solution is free to set up, they do charge transaction fees for every sale. 

Free POS software can provide a lifeline to small businesses on tight budgets. Despite this, users should be aware that complementary options often feature many limitations and may not be able to keep up with the demands of growing businesses. What’s more, lots of providers offer free services with the hope that customers will eventually move on to paid models. 

With this in mind, if your small business is in a position to spend a little on POS software, it may be worth pursuing options that are more flexible and feature-rich to begin with.

How We Researched the Best POS Systems for Small Businesses